7 Proven Strategies to Protect Your Supply Chain

Reduce Risk and Prepare for the Unexpected

In today’s global economy, supply chain disruptions are inevitable. Companies must proactively plan for resilience and adaptability, whether due to geopolitical tensions, tariffs, component shortages, or factory challenges.

Product Realization Group’s veteran hardware and operations experts Michael Keer, Founder and Managing Partner, and Wayne Miller, New Product Development and Introduction, shared their insights on mitigating supply chain risk, drawing from decades of experience in manufacturing, operations, and supplier management. Below, we outline seven key strategies to safeguard your supply chain and keep your production on track.

PRG uses these strategies to mitigate supply chain risk.

1. Know your market, policies, and regulations
2. Design with standard parts to avoid long lead times
3. Stabilize your product before scaling
4. Choose suppliers wisely—look beyond cost
5. Have backup sources for critical components
6. Communicate predictable demand to your suppliers
7. Review and hold suppliers accountable regularly

Strategy #1: Understand End-User Market Locations, Capabilities, Politics, and Policies

Supply chains don’t operate in a vacuum. Your customers’ locations, the geopolitical climate, and regional regulations can all impact sourcing, tariffs, and logistics.

Many companies assume that moving the final assembly to a different country will eliminate tariffs, but that’s not always the case. You still pay those fees if you source subassemblies or raw materials from a tariff-affected country. Beyond tariffs, local capabilities and regulatory differences can make or break your supply chain strategy. A product that scales well in one country might face certification hurdles, different labor laws, or infrastructure challenges somewhere else.

What to do:

• Research local policies, tariffs, and geopolitical risks before choosing a manufacturing region.
• Stay informed on trade agreements that could impact cost and lead times.
• Work with regional suppliers where possible to mitigate cross-border risks.

Strategy #2: Utilize Standard and Short-Lead Time Parts in Design

One of the fastest ways to derail a supply chain is over-reliance on custom or long-lead-time components. For example, we’ve seen companies struggle because they designed a product around a very specific part, and then suddenly, that part wasn’t available or had a 52-week lead time. If you can, use off-the-shelf components or have alternative sources.

What to do:

• Design with readily available components whenever possible.
• Maintain a list of alternative parts to avoid single points of failure.
• Stay ahead of component lifecycle changes that could affect future availability.

Strategy #3: Stabilize Your Product Design Before Scaling

Scaling production before stabilizing the design is a recipe for disaster. Even small undocumented changes can cause huge issues when switching factories or increasing volume.

Many companies don’t realize how many design tweaks happen during prototyping and early production. If you haven’t locked down your BOM (Bill of Materials) and documentation, you might transfer the wrong design to a new factory and create major problems. For example, Wayne worked with a company that moved production to Mexico, but their documentation wasn’t fully updated. They ended up with an old design version at the new factory, and a year later, they are still working through design issues.

What to do:

• Freeze product design before scaling manufacturing.
• Maintain a Product Lifecycle Management (PLM) system to track updates.
• Verify that all suppliers have the latest documentation before any transition.

Strategy #4: Select Your Suppliers Carefully

Choosing the right contract manufacturer or supplier is about more than cost—it’s about technology fit, culture, and long-term scalability.

Not all factories are created equal. Some have better material procurement, some excel at inventory management, and some have deep technical expertise. You have to find the right match for your product and business model. Beyond capabilities, financial stability matters. If your supplier goes under, your entire supply chain is at risk.

What to look for in a supplier:

• Technology fit: Do they have the right capabilities, experience, and certifications?
• Culture match: Are they aligned with your quality, communication, and business values?
• Scalability: Can they handle increased volume as your business grows?
• Location: Is their factory in the best place for final assembly, logistics, and repair services?

Strategy #5: Duplicate Sources of Supply Where Practical

Having multiple suppliers for critical components protects your business from unexpected disruptions.

One of our customers had one supplier for a critical camera module. When they tried to switch factories, they realized they didn’t even know where the camera came from. It turned into a major bottleneck. It’s not always possible to dual-source everything, but for key components, you should either have a backup supplier or hold intermediate stock.

What to do:

• Dual-source high-risk components whenever feasible.
• Maintain a buffer stock for critical parts.
• Regularly audit supplier performance to identify potential risks.

Strategy #6: Communicate Clear and Predictable Volumes

Your manufacturer is an extension of your company. They’re constantly playing catch-up with materials and production if they don’t have clear forecasts. And that’s when you start seeing delays, rush charges, and even product quality issues. Suppliers and factories need predictability to plan their materials, labor, and production schedules. Fluctuating demand without notice can lead to shortages, delays, or quality issues.

What to do:

• Provide realistic demand forecasts to suppliers.
• Communicate early and often about volume shifts.
• Work closely with suppliers on capacity planning to avoid bottlenecks.

Strategy #7: Hold Regular Supplier Reviews

Building strong supplier relationships requires ongoing communication and evaluation. Regular reviews help identify potential risks before they become major issues.

We’ve seen dramatic supplier improvements when they know they’re monitored. A company we worked with introduced a second factory, and suddenly, their original supplier stepped up their game—better quality, faster delivery. A little competition can be a good thing. You should treat your supplier reviews like performance evaluations. Are they meeting quality, delivery, and cost expectations? If not, what corrective actions are needed?

What to do:

• Conduct quarterly supplier reviews to track performance.
• Use KPIs (Key Performance Indicators) to measure quality, delivery, and cost.
• Provide feedback and hold suppliers accountable for improvement.

Final Thoughts

No supply chain is immune to risk, but companies that plan ahead and follow these strategies will be better positioned to handle disruptions.

By following these best practices, companies can improve supply chain resilience, reduce risk, and ensure smoother operations—no matter what disruptions arise.

Want expert guidance?

For more information on how you can protect and de-risk your supply chain, contact Product Realization Group!