Mitigation Strategies in Sourcing

Mitigation strategies in sourcing refer to methods used to reduce risks associated with obtaining goods and services. This includes identifying potential issues, such as supplier reliability or price fluctuations, and taking proactive steps to address them. Strategies can involve diversifying suppliers to avoid dependency, negotiating better terms, maintaining safety stock, or conducting regular audits. The goal is to ensure a steady supply while minimizing disruptions, costs, and negative impacts on the business. By implementing these strategies, companies aim to create a more resilient sourcing process that can withstand unexpected challenges.