Navigating Supply Chain Challenges: Key Concepts of the GMI Mitigation Strategies
Written by Patrick Froh
Navigating Supply Chain Challenges: Key Concepts from the GMI Mitigation Strategies
In today's rapidly changing global market, businesses must adapt to supply chain disruptions and uncertainties.
The mitigation agreement from GMI Solutions outlines several strategies to mitigate these challenges and ensure a consistent flow of product shipments.
Here are the key concepts from the risk mitigation agreements GMI executed with OEM customers during the pandemic:
- Scheduled System-Level POs with 60-Day Invoicing on Idle Material
- Prepayment or Cash in Advance on Inventory
- Consigned Materials
- Long Lead Time or High-Risk Parts Orders with Deposit
- Seller Managed Inventory (SMI)
The global market is currently facing significant uncertainty due to various factors, including geopolitical instability, trade policy changes, and economic disruptions. According to recent reports, these uncertainties are weighing heavily on economic growth and business performance.
- Geopolitical Instability:
Conflicts and political fragmentation between countries have introduced a new normal for turbulence, affecting global trade and economic conditions. - Trade Policy Changes:
Shifts in trade policies and relationships are now seen as major disruptive forces, alongside geopolitical instability. - Economic Disruptions:
Successive shocks, such as Brexit, US-China trade tensions, the COVID-19 pandemic, and Russia's invasion of Ukraine, have combined to keep uncertainty elevated during a tariff-laden environment. - Impact on Business Performance:
Executives express more caution about future conditions and company performance, with many expecting economic conditions to decline.
In this challenging environment, businesses must remain agile and proactive in managing supply chain risks and uncertainties. The strategies outlined in the GMI Solutions agreement provide a framework for navigating these challenges and ensuring a stable supply of products.
What do you think about these strategies? Do you have any specific concerns or questions about the current market conditions?
If you are interested in chatting about how we can help you mitigate the risks generated by current events, reach out us - we'd love to talk with you!
