Article

Resilient supply chains in procurement: strategies, measures and KPIs

Christian SeminAuthor: Christian Semin
02. December 2025 Updated: 26. October 2026 9 min. reading time
Resilient supply chains in procurement: strategies, measures and KPIs

Resilient supply chains: what matters when sourcing made-to-order parts

In brief: A resilient supply chain keeps supply running even when disruptions occur. When sourcing made-to-order parts, it is built on five fields of action, including weak point analysis, supplier diversification and scenario planning, and becomes measurable through KPIs such as time to recover and time to survive. European suppliers can be a building block in each of these fields.

High-precision components require reliable and flexible supply chains to avoid production downtime and ensure consistent quality. Geopolitical tensions, raw material shortages and unforeseeable events threaten the stability of complex manufacturing networks. A recent example comes from the ifo business survey: in September 2026, 14.6 percent of manufacturing companies in Germany reported a shortage of intermediate products, and in mechanical engineering the share was 16.3 percent (ifo Institute, 2026).

What does supply chain resilience mean?

There is no single definition in the specialist literature. A frequently cited definition comes from Ponomarov and Holcomb: supply chain resilience is the adaptive capability of a supply chain to prepare for unexpected events, respond to disruptions and recover from them so that operations continue at the desired level (Ponomarov and Holcomb, 2009). This covers reactive measures to limit damage as well as proactive strategies to minimise risk.

In technical purchasing, this means: if the contract manufacturer of a critical part drops out, a qualified alternative must be available or quickly established before assembly comes to a standstill.

The difference between supply chain resilience and traditional risk management

Traditional supplier risk management identifies known risks, assesses them by probability of occurrence and impact, and derives measures from this. The article on > risk management and compliance in the supply chain covers supplier evaluation and risk minimisation through transparent supplier networks in more detail.

Resilience is closely related, but focuses on the ability to absorb disruptions and return to a stable state more quickly (Ponomarov, 2012). David Simchi-Levi's model at MIT follows the same logic: it assesses the impact of a failure on the supply chain, regardless of its cause (MIT News, 2022). Risk management asks what could happen. Resilience asks how long supply will last without a particular supplier and how quickly a replacement is available.

Strategies and measures for a resilient supply chain

Strengthening supply chain resilience starts with systematically identifying weak points. Critical risk indicators include:
1.
dependence on individual suppliers (single-source situations)
2.
lack of transparency in multi-tier supply chains
3.
insufficient production capacity during demand peaks
4.
geographical concentration of suppliers in unstable regions or along long transport routes
5.
missing communication channels to strategic suppliers
Successful supplier evaluation requires structured methods. Regular audits and comprehensive risk analyses help to identify potential weak points at an early stage. Both financial figures and operational performance indicators should be taken into account. Evaluation criteria include on-time delivery, quality standards, response times and financial stability. A common approach is to categorise risks by probability of occurrence and potential impact, as also provided for in the ISO 31000 standard for risk analysis. This categorisation should be updated regularly, as risk profiles change quickly in a dynamic market environment. Legal due diligence obligations also belong in this analysis: the due diligence obligations under the German Supply Chain Due Diligence Act (LkSG) continue to apply, even though the reporting obligation is set to be abolished (BMAS, 2025). The EU Corporate Sustainability Due Diligence Directive (CSDDD) was amended in 2026 and its scope narrowed (GTAI, 2026).

The analysis should also look at geography: if several critical suppliers are located in the same region or depend on the same sea route, this is a concentration risk. A European manufacturer with an overland transport route can spread this risk.

Diversifying the supplier portfolio in a targeted way

Digital sourcing platforms help buyers diversify their supplier portfolio systematically. Filter functions enable targeted searches for suppliers with specific manufacturing capabilities, certifications or regional locations. Buyers can quickly identify and evaluate alternative sources of supply, which saves time in crisis situations. For critical parts with only one supplier, building up a second source is the obvious first step.

Strategic diversification considers not only the number of suppliers, but also their distribution according to geographical, technological and economic criteria. More suppliers do not automatically mean more resilience: if two manufacturers use the same sub-supplier, are located in the same region or depend on the same raw material, a common point of failure remains.

European suppliers are one dimension of this diversification. Within the EU, the 27 member states form a common customs territory, and no customs duties apply to trade in goods between them (European Commission, 2026). Suppliers outside the EU, for example in Switzerland or the United Kingdom, are subject to customs procedures. The > For Europe page explains why Techpilot focuses on manufacturing in Europe.

Securing critical inventory and logistics

Safety stocks should be built up strategically for critical components with long procurement lead times. Segmentation based on ABC/XYZ analyses enables a differentiated inventory strategy. ABC describes a part's share of value, XYZ the regularity of its consumption. On its own, this says little about criticality of supply. A low-cost C part from a single source can stop assembly just as much as an expensive A part. An additional classification by criticality is therefore useful, for example by replenishment lead time, number of qualified suppliers and impact of a missing part. Forecasting methods combine historical data with current market trends to predict demand more accurately.

Just-in-time strategies can be complemented by just-in-case approaches. The lean supply chain remains the basis, while critical components selectively receive higher safety stocks. Vendor managed inventory concepts transfer inventory planning wholly or partly to the supplier. Whether and how much the buyer's own tied-up capital decreases depends on the agreed inventory and ownership model, for example whether consignment stock has been agreed.

Resilient logistics also means planning transport routes and storage locations so that a single failure does not interrupt supply. Shorter transport chains with European suppliers can reduce replenishment lead times and thus lower the safety stock required.

Communicating with suppliers as partners

Strong communication with suppliers is essential for resilient collaboration. Success factors include regular meetings, clear expectations and partnership-based relationships. Quarterly business reviews provide a suitable framework for strategic discussions. Transparent performance evaluation systems (supplier scorecards) are based on objective criteria and give both sides clear pointers for improvement. Involving strategic suppliers in product development processes at an early stage can provide valuable input for optimisation.

Central information portals allow specifications, quality requirements and schedules to be shared in real time. With suppliers in the same or a neighbouring time zone, short-notice coordination, first article inspections and on-site audits are easier to schedule, which is the case in many European sourcing relationships. The article > Building long-term supplier relationships through innovation and transparency shows how such formats lead to robust partnerships.

Preparing for crises with scenarios and stress tests

Scenario planning prepares for crises such as natural disasters, political instability or pandemics. It makes sense to run through several scenarios ranging from optimistic to pessimistic assumptions and to involve a team from procurement, logistics, production and sales. A typical scenario for made-to-order parts is the failure of an overseas shipment: how long will inventory last, and which manufacturer in Europe could supply the part in qualified form within that time?

Regular simulation exercises and stress tests help to identify weak points in contingency plans and improve responsiveness. Business games test decision-making processes under time pressure. Such a stress test can be quantified using the KPIs in the following section.

Measuring supply chain resilience with these KPIs

Simchi-Levi and colleagues developed the time to recover and time to survive metrics for this purpose, which have become widely used in supply chain practice (Simchi-Levi et al., 2014; INFORMS, 2020). For procurement, they can be complemented by KPIs that follow directly from the risk indicators:
KPI
What it measures
Benefit for procurement
Time to recover (TTR)
Time until a failed node, such as a supplier's plant, is fully operational again
ask the supplier and document for each critical part
Time to survive (TTS)
Maximum period during which demand can still be met without this node
results from inventory, pipeline and available alternatives
Time to alternative supply
Time until demand is met again via an alternative supplier
shows whether a second source closes the gap faster than the failed supplier
Single-source share
Share of critical made-to-order parts with only one qualified supplier
target figure for building up a second source
Supplier concentration
Share of a commodity group's purchasing volume with the largest supplier or in one region
reveals concentration risks in the portfolio
On-time delivery (OTD)
Share of items delivered on time
early indicator of capacity problems

Table: KPIs for measuring supply chain resilience

If a supplier's time to recover exceeds the time to survive, the supply chain cannot meet demand without a contingency plan (Simchi-Levi et al., 2014). These are the points where a second source, safety stock or a prepared contingency plan pays off.

Digitalisation and supply chain resilience

For made-to-order parts, resilience depends above all on how quickly a qualified replacement supplier can be found and commissioned. This is where digitalisation comes in. If the technical drawing, material, tolerances, surface requirements and inspection specifications are fully available in digital form and at the current revision level, a request for quotation can be sent to new manufacturers at short notice. If this documentation is missing, it delays any requalification in an emergency, that is, the renewed approval of a part at a different manufacturer, including first article inspection.

Digital sourcing platforms match the requirements of a part with supplier profiles, for example by manufacturing technology, machinery, materials, batch sizes and certificates, and deliver structured, comparable quotes. This also shows which manufacturers are able to produce a critical part at all before a failure occurs. AI-supported analyses can additionally monitor supplier KPIs and market developments and flag changes. A reliable database remains a prerequisite, and suppliers also contribute to it.

Procurement tools for supply chain resilience and risk management

In practice, several tool categories complement each other, each covering a different aspect of resilience:
Tool category
Typical functions
Contribution to resilience
Supplier risk monitoring
Monitoring of creditworthiness, news, country and sanctions risks
early warning of supplier failures
Supplier management (SRM)
Supplier evaluation, scorecards, audits, action tracking
make on-time delivery and quality measurable
Spend analysis
Analysis of purchasing volume by supplier, commodity group and region
reveal single-source situations and concentration risks
Supply chain planning and simulation
Demand forecasting, inventory planning, scenario calculation
calculate time to survive, run through scenarios
Digital sourcing platforms
Supplier search, request for quotation, quote comparison
build up alternative sources of supply and a second source

Table: Tool categories for supply chain resilience and risk management

Techpilot belongs to the last category. In the pool of suppliers, buyers can find more than 24,000 potential suppliers for 280 manufacturing technologies. The company profiles show, among other things, certificates, batch sizes and processable materials, and suppliers that are already known can be integrated into the platform free of charge.

Conclusion: where building a resilient supply chain begins

A sensible starting point is the parts for which a supplier's time to recover exceeds the time to survive. For these, it is worth first qualifying a second source, adjusting inventory or preparing a contingency plan. European suppliers are one lever here if they actually spread existing dependencies.

For implementation in the team, the > checklist for the strategic sourcing of made-to-order parts summarises 15 checkpoints on supply chain, compliance and geopolitical risks. If you want to check a second source for a critical part, you can submit a request for quotation with the technical drawing via Techpilot.

Strategically building up safety stock

Inventory optimisation is a key aspect of ensuring supply chain resilience. Safety stock should be built up for critical components with long procurement times. Segmentation according to ABC/XYZ analyses enables a differentiated inventory strategy.

High-value, critical A-parts require different strategies to lower-value C-parts. Modern forecasting methods combine historical data with current market trends to predict demand more accurately.

FAQ: Frequently asked questions about resilient supply chains

Which procurement tools support supply chain resilience and risk management?

A typical setup combines supplier risk monitoring, supplier management software with scorecards, spend analysis, supply chain planning with simulation and digital sourcing platforms for alternative sources of supply.

What are single-source situations?

A single-source situation arises when a company is wholly dependent on a single supplier for certain components or materials. This dependency poses a significant risk, as failures on the part of the supplier can result in direct production interruptions.

What advantages do European suppliers offer for resilience?

They enable shorter, often overland transport routes, coordination with little or no time difference and on-site audits with little effort. No customs duties apply to suppliers from EU member states. Resilience increases if the European supplier actually spreads existing dependencies.

What is Vendor-Managed-Inventory?

Vendor-managed inventory (VMI) is a concept in which the supplier is responsible for managing and planning inventory at the customer's premises. This reduces the customer's capital commitment while improving supply security by leveraging the supplier's expertise.

How does ABC/XYZ analysis work?

The ABC/XYZ analysis method categorises materials and components. ABC classification is based on value share (A = high, B = medium, C = low), while XYZ classification is based on consumption regularity (X = constant, Y = fluctuating, Z = irregular). This combination enables differentiated procurement strategies.

What are Quarterly Business Reviews?

Quarterly Business Reviews (QBR) are structured quarterly meetings between buyers and strategic suppliers. They evaluate performance, discuss potential improvements and plan future activities. QBRs strengthen partnership-based cooperation and improve communication.

About the author

Christian Semin is Team Lead Sourcing at Techpilot and has been immersed in the world of custom-manufactured parts for more than 20 years. With a background in mechanical engineering technology, a degree as a Certified Business Manager, and years of hands-on experience in a mechanical engineering company, he brings genuine industry expertise to the table. At Techpilot, he works closely with buyers and suppliers every day and knows exactly what matters when it comes to sourcing CNC parts.

Sources

  • ifo Institut: Materialengpässe in der Industrie nehmen wieder zu (material shortages in industry are rising again), 12 October 2026
  • Ponomarov, S. Y.; Holcomb, M. C.: Understanding the concept of supply chain resilience. The International Journal of Logistics Management, 20(1), pp. 124-143, 2009
  • Ponomarov, S.: Antecedents and Consequences of Supply Chain Resilience: A Dynamic Capabilities Perspective. Dissertation, University of Tennessee, May 2012
  • Simchi-Levi, D.; Schmidt, W.; Wei, Y.: From Superstorms to Factory Fires: Managing Unpredictable Supply-Chain Disruptions. Harvard Business Review, January/February 2014
  • MIT News: Companies use MIT research to identify and respond to supply chain risks, 15 June 2022
  • INFORMS: Impact Prize 2020, David Simchi-Levi, 2020
  • ISO 31000:2018 Risk management, Guidelines
  • European Commission, Access2Markets: page on the EU market (German version consulted: Der EU-Markt), accessed 20 October 2026
  • BMAS (German Federal Ministry of Labour and Social Affairs): Lieferkettensorgfaltspflichtengesetz gilt nahtlos weiter, press release, 3 September 2025
  • GTAI (Germany Trade & Invest): Europäische Lieferketten-Richtlinie im Amtsblatt veröffentlicht, 5 March 2026