NPE2015

5

Key Insights to Help Manufacturers Prevent Supply Chain Disruption

2015

2015

The most effective contingency plans include the entire

operation, including steps to take when a critical piece of

equipment breaks down.

Consider this checklist:

RELATED LINK:

4 Steps to a Business Continuity Plan

List of key equipment

Inventory of spare parts

Identify specialized rental equipment needs

Line up repair contractors

Consider relationships with other companies that can help you when you are down

When your supply chain includes overseas suppliers, it can

mean increased risks and liabilities.

RELATED LINK:

Working With Overseas Suppliers

These 7 steps can help manage and mitigate risks:

1. Know regulations and standards; consult with legal counsel

2. Know your suppliers

3. Require an approval process for any changes

4. Conduct a rigorous quality control program

5. Arrange for independent product testing

6. Transfer risk to the extent possible; consult with legal counsel

7. Document everything!

When purchasing new equipment, it is a good idea to

consider the lead time it will take for repairs.

Do you know the answers to the following:

RELATED LINK:

Create an Emergency Communications Plan

What are the technician lead times?

How long will it take to get parts?

Are new machine parts available for older machines?

Will you need extra time or money to make custom modifications?

Running highly specialized machines like those at NPE

requires skilled machine operators. Loss of these key

personnel can present a disruption to your supply chain.

A sound business continuity plan considers:

RELATED LINK:

Identify In-Plant Bottlenecks

Training for less experienced workers

A response to workers compensation claims

Succession planning

Supply chains are becoming increasingly complex. They

encompass the entire product life cycle, with

dependencies upstream, in-plant and downstream.

Do you know the answers to the following:

RELATED LINK:

Take The Supply Chain Pressure Test

Which links in your supply chain might be most at risk?

What can be done to help manage this risk?

Our four-part questionnaire can help you uncover and avert potential supply chain risks.

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2015

From the NPE floor:

Blow-molding technology manufactures products without scrap. Plastic preforms reduce

waste but can increase supply chain risk if source is interrupted.

From the NPE floor:

Some thermoforming machines now contain closed loop recycling systems to

reduce waste and improve efficiency.

From the NPE floor:

Determining source of replacement equipment, along with lead time, is important

to limit impact to production capability.

For more manufacturing risks and trends,

visit www.travelers.com/manufacturing

This program or presentation is only a tool to assist you in managing your responsibility to maintain safe

premises, practices, operations and equipment, and is not for the benefit of any other party. The program or

presentation does not cover all possible hazardous conditions or unsafe acts that may exist, and does not

constitute legal advice. For decisions regarding use of the practices suggested by this program or

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whatsoever, without limitation. Implementation of any practices suggested by this program or presentation is

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