This year is a difficult one for manufacturing. The costs, complexities and global interdependencies involved in the production of semiconductor chips make the tumultuous state of the global supply chain more daunting than ever. Dozens of industries must be carefully aligned, billions of dollars invested, and many years allotted before the production of even a single chip can take place. Such fragility, together with trade wars, active conflicts and other supply-chain disruptions warrant concern from any manufacturer that is reliant upon microchips.

Precautions can, however, be taken. By practicing foresight and preparing for the inevitable hiccup, manufacturers can go a long way toward ensuring that a shortage of microchips does not cause their facilities to lay dormant. Following are three ways to do precisely that.

Diversify sources. If a given manufacturer is importing microchips, there’s a good chance that they’re coming from the East and, more specifically, Taiwan. Fully 92% of the world’s advanced semiconductor manufacturing capacity is located there. Such a drastic concentration of supply should make any manufacturer uneasy, especially given the country’s current diplomatic tensions, as any number of natural or geopolitical events could derail microchip production. Even manufacturers that import from other eastern nations, like South Korea or China, run the risk of regional conflicts or supply-line holdups bringing their own production to a standstill.

As long as Taiwan and the East remain the most thoroughly equipped for semiconductor production, the first thing manufacturers should do is diversify their primary sources within Asia. Merely adding a South Korean manufacturer to one’s list of suppliers, for instance, can halve the risk of sourcing exclusively from Taiwan. Manufacturers should then consider establishing secondary sources elsewhere, such as Europe or the Americas. Developing nations like Mexico show much potential in component manufacturing, and while their capacity cannot yet compete with the East, their proximity to the U.S. makes them reliable alternatives.

Establish long-term relationships. Just as manufacturers should accumulate a reliable network of microchip suppliers collectively, they must also establish relationships with individual suppliers that are reliable in and of themselves. By ensuring that every partnership is well-founded, dependable and lasting, a manufacturer can increase the likelihood that its suppliers will continue to support it when times are difficult, and will prioritize its business when production is low. Companies that collaborate extensively with suppliers outperform industry growth trends by nearly 200%. Practically, this takes two forms: choosing stable suppliers, and building future-minded relationships.

Choosing stable suppliers requires long-term thinking. Considering geopolitical circumstances is vital — a large factory in Taiwan might offer immediate profitability and long-term uncertainty, while a young producer in Mexico might offer reduced immediate returns and long-term dependability. Both have value, but forming a lasting relationship with the latter may be of more benefit for the manufacturer than doing so with the former. Building those future-minded relationships, in turn, requires mutual alignment and cooperation. While those two factors—having the same abstract goals and achieving them in a practically constructive way—are equally important, the latter generally proves a greater challenge.

Manage inventory. Even after a manufacturer has diversified its sources and established long-term relationships, the erratic nature of the global supply chain all but guarantees that the availability of microchips will eventually fluctuate. In order to prepare for such an inevitability, one must keep a close eye on both one’s inventory and the external events that govern its inflows and outflows. Effective inventory management is a manufacturer’s final defense against production loss, and can mean the difference between folding with the market or emerging from difficulty unscathed.

Manufacturers should begin by determining a volume to be maintained in inventory as safety and buffer stock. The first will likely be a standard amount, based on average sales data, while the second requires anticipating times of high demand or low supply, and padding inventory over those times to compensate. The subsequent leeway will grant the manufacturer time and flexibility when the market shifts.

Next, manufacturers must closely monitor the global supply chain for portents of change, and stock accordingly. Ensuring end-to-end supply chain visibility can halve a company’s risk of being impacted by disruptions. Predicting demand fluctuations, such as the recent pandemic and remote-work movement, provides the same benefit.

Few components are as sensitive to the whims of the world market as the semiconductor chip, and those who rely on them must work actively to secure their supply. Failing to do so will result in direct dependency on the caprices of supply and, ultimately, the fragility of their own production. Manufacturers that take precautionary measures, however, will acquire the time, resources and confidence to act in the best interests of their own business, no matter the state of the world.

Jorge Gonzalez Henrichsen is co-chief executive officer of The Nearshore Company.