Supply risks

#	Risk	Consequences	Measures
1	Change of Market Characteristics	Market Shortages Commodity Price increases Sole source/limited Qualified Sources	Opt to switch to a multi-supplier strategy to become less susceptible to changing market characteristics.
2	Supply Commitment	Having a wrong commitment on the OEM/buyer side can cause having either an unmet buyer demand or growing excess inventories. Especially long term advance orders are a culprint of this.	Implementing a Forecast-Commitment Contract as proposed by Durango-Cohen and Yano (2006) ³⁷
3	Supplier Failure	Delivery Failure Quality Problems Discontinuity of Supply	OEMs offering financial support for their suppliers if they are in danger of not meeting quotas and quality.
4	Supplier delays	Increase in business costs Decrease in customer satisfaction Cash flow issues	Implementation of tracking systems Working with domestic suppliers Supplier training and development Continuous inventory monitoring

Sources: 4, pp. 22ff; 23; 37; 38

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