Tag Archive for: Dual Sourcing

PT XYZ is one of the leading fast-moving consumer goods companies producing packaged mineral water in Indonesia. Water is a daily necessity and one of life’s most basic needs. Therefore, providing healthy hydration through safe and ready-to-consume drinking water aligned with the company’s mission to deliver health through food to as many Indonesian consumers as possible through sustainable operational production.

Operational production is one key enabler in delivering these objectives. Dual-sourcing of validated packaging materials could catalyse sustainable production operations through supply risk mitigation, whose root causes come from internal and external factors. This paper uses quantitative, PDCA, and decision tree methods to analyse the supply and demand of packaging materials in short to mid-length timeframes to ensure capacity availability and redundancy, trial, and validation processes.

Prioritization through risk assessment of potential net sales loss and probability leads to several implementation phases, periodic monitoring to track initiatives and ensure they stay on course, the timely escalation of solutions, and visibility of acceptable calculated risk.