A global FMCG company, sourcing critical raw materials and packaging components across Asia and Europe, faced significant supply continuity risks due to:

• Over-dependence on single-source suppliers for key inputs.
• Exposure to geopolitical instability, transport disruptions, and production shutdowns.
• Lack of structured supplier risk assessment and mitigation plans.
• Limited flexibility to quickly switch suppliers in case of emergencies.

Following several near-miss supply disruptions, the leadership aimed to proactively strengthen supply chain resilience through supplier diversification and risk management strategies.

CoreChain conducted a structured risk mapping and sourcing assessment, leveraging both quantitative and qualitative analysis.

Data collected:

• Supplier dependency ratios by component / raw material.
• Geographical sourcing concentration.
• Supplier performance history (delivery reliability, quality issues, lead time variability).
• Contract terms and switching costs.
• External risk factors: geopolitical exposure, freight capacity, market volatility.

• Supplier portfolio analysis and dependency scoring.
• Risk mapping and scenario planning (What-If analysis on key risk events).
• Multi-sourcing feasibility study (cost-benefit-risk trade-offs).
• Total cost of ownership (TCO) and flexibility assessment per sourcing scenario.

CoreChain designed a supplier diversification strategy based on four pillars:

1. Supplier base segmentation and risk prioritization.
2. Dual- and multi-sourcing implementation for critical categories.
3. Identification of nearshoring and alternative sourcing options to reduce geographical exposure.
4. Contractual risk mitigation levers: flexibility clauses, inventory buffers, supplier development initiatives.

Key recommendations included:

• Activation of secondary suppliers with prequalified contracts.
• Development of a risk monitoring framework and early warning system.
• Establishment of contingency plans and response playbooks for high-risk categories.

• Phase 1:

Risk assessment and supplier mapping across all critical categories.

• Phase 2:

Sourcing strategy definition and dual-sourcing negotiations.

• Phase 3:

Deployment of supplier risk monitoring dashboards and resilience governance mechanisms

Delivered enablers:

• Risk scoring tools and monitoring templates.
• Supplier qualification guidelines and audit checklists.
• Playbooks for crisis response and supply continuity management.

• Dependency on single-source suppliers reduced by 45% across priority categories.
• Supply continuity risk significantly lowered, with dual sourcing secured for 80% of critical inputs.
• Lead time flexibility increased through alternative sourcing options.
• Faster recovery capability demonstrated during a transport disruption scenario test.
• Procurement function strengthened with systematic risk visibility and proactive mitigation strategies.