Defense supply chains fail differently than commercial ones — the cost of a disruption is measured in mission readiness, not just margin. These are the five risks we see most often, and how to close each.
1. Compliance Gaps at Subtier Suppliers
Your DFARS exposure lives two and three tiers down. Map your critical BOMs to origin and verify certifications as a condition of purchase.
2. Single-Source Dependencies
A single-source critical component is a single point of failure. Identify them explicitly and qualify a second source before you need one — not during a crisis.
3. Counterfeit and Gray-Market Parts
Enforce authorized-source purchasing, incoming inspection, and traceability. Electronics are the highest-risk category.
4. Cybersecurity Flow-Down
Suppliers handling CUI expand your attack surface. Make CMMC maturity a qualification criterion.
5. Supplier Financial Fragility
A supplier bankruptcy can stop your line. Monitor financial health indicators for critical suppliers as part of your scorecard.
Key Takeaways
- DFARS risk concentrates at subtier suppliers.
- Qualify second sources for single-source critical parts before a crisis.
- Authorized-source purchasing is the primary counterfeit defense.
- Monitor critical-supplier financial health continuously.