Building Resilient Supply Chains Through Design-Driven Innovation

The global pandemic has irrevocably altered the landscape of supply chain management, exposing vulnerabilities even in the most sophisticated networks. Companies today are realizing that the challenges of supply chain disruption extend far beyond the pandemic. Unpredictable events such as port closures, semiconductor shortages, geopolitical shifts, and extreme weather pose constant threats to supply chains. In a recent webinar hosted by SAE Media Group, George Lewis, Vice President of Product Strategy at Arena by PTC, offered a compelling roadmap for organizations seeking to outsmart disruption through design-driven strategies.

How Does a Shift-Left Approach Strengthen Supply Chain Resilience?

In the context of product development, a shift-left approach advocates for addressing potential issues earlier in the design phase. This strategy allows companies to anticipate and mitigate supply chain risks more effectively. The idea is to “spend a few more cycles early on in development such that you can think about potential manufacturability and supply chain issues,” noted Lewis. By doing so, companies can design more resilient products and avoid costly disruptions later in the process.

Main Risk Mitigation Strategies With Shift-Left

1. Multisourcing

One of the most effective risk mitigation strategies is multisourcing, which involves establishing multiple sources for critical components. This approach ensures that if one supplier faces issues, others can fill the gap, thus improving resiliency. Historically a procurement responsibility, multisourcing has shifted left, requiring engineering teams to identify alternate sources early in the design process. By doing so, organizations can proactively manage supply chain disruptions.

2. Enhanced Collaboration With Suppliers

Early collaboration with suppliers is crucial in facilitating design for excellence (DFX). Traditionally, suppliers were involved only after the design phase, leading to potential issues down the line. However, the shift-left approach emphasizes involving suppliers from the outset. By integrating suppliers into business platforms such as cloud product lifecycle management (PLM) or quality management systems (QMS), companies can receive real-time feedback on design decisions, enhancing flexibility and reducing risks. As Lewis noted, “Collaboration with your strategic suppliers can actually have a big impact on your flexibility further downstream.”

3. Digital Adoption

Effective supply chain risk management hinges on having the right data and technology to monitor electronic component risks. Cloud PLM and supply chain intelligence platforms that integrate external data, such as component availability information, help organizations identify and mitigate risks. Companies without dedicated risk management teams can use these tools to democratize information, enabling engineers to make informed decisions about component selection.

How Do Data and Technology Enhance Collaboration and Supply Chain Resilience?

Having the right data and technology not only aids risk management but also enhances collaboration with suppliers. Contextual collaboration, facilitated by integrated PLM and QMS solutions, allows for seamless communication, reducing the likelihood of errors and delays. These systems provide engineers with real-time insights into potential risks, enabling proactive decision-making and fostering a culture of design-driven resilience.

How Can Ignoring Component-Level Risks Jeopardize Supply Chain Resilience?

Failing to monitor component risks can have significant repercussions. For instance, the unavailability of critical components like resistors or capacitors can halt production, leading to delays and increased costs. A recent survey revealed that more than half of organizations have experienced disruptions tied to electronic component shortages, underscoring the importance of proactive risk management. Without the appropriate tools and visibility, companies may be unaware of looming risks—what Lewis aptly described as operating “blind”—resulting in reactive problem-solving rather than strategic planning.

Using Cloud Technologies for Design-Driven Supply Chain Resilience

In an era of constant disruption, a shift-left, design-driven approach to supply chain resilience is essential. By incorporating strategies such as multisourcing, early supplier collaboration, and digital adoption, companies can build more resilient supply chains. Enterprise solutions like Cloud PLM and QMS play a critical role in facilitating this approach, enabling organizations to anticipate and mitigate risks effectively. As the landscape continues to evolve, embracing these strategies will be crucial for companies looking to not just survive but thrive amid supply chain disruptions. Watch the on-demand webinar to learn more.