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Qualify Supplier in a Volatile Region

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Problem

Project Background

Meta's global infrastructure sourcing team is evaluating a new power-systems supplier for data center expansion in Eastern Europe. The supplier could reduce unit costs by 14% and improve lead times for a critical deployment supporting Meta AI and Ads capacity, but it operates in a region facing political instability, currency swings, and intermittent port closures. You are the Operations Manager responsible for deciding whether to onboard the supplier and, if so, under what launch conditions.

Key Stakeholders

Infrastructure Engineering wants the supplier approved within 8 weeks to protect a Q4 capacity milestone. Global Security and Legal are concerned about sanctions exposure, employee safety during site audits, and business continuity. Finance wants the savings captured this half, while Quality insists on full validation before any production commitment. The Data Center Delivery lead is open to a phased rollout, but Procurement prefers a single-source award to maximize discounts.

Constraints

You have 60 days to make a go/no-go recommendation before Meta must lock purchase orders. The remaining diligence budget is $180,000, including travel, third-party audits, and legal review. The cross-functional team includes 9 people across Sourcing, Quality, Security, Legal, and Engineering; no additional headcount is approved. A backup incumbent supplier can cover only 55% of forecast demand, and switching after award would add a 10-week delay.

Complications

  1. The region's main shipping corridor was disrupted twice in the last quarter, causing average export delays of 12 days.
  2. The supplier's financial statements are audited, but the latest report is 9 months old and denominated in a volatile local currency.
  3. A senior engineering director has already told leadership this supplier is the most likely path to hit the Q4 build schedule.

Your Task

  1. Build a 60-day execution plan to assess supplier risk and reach a sourcing recommendation.
  2. Define the decision framework, including launch gates, risk thresholds, and trade-offs between cost, speed, and resilience.
  3. Propose a phased onboarding or fallback strategy if the supplier is partially approved.
  4. Identify the top risks, owners, and trigger-based mitigation actions.
  5. Define success metrics and the first 30 days of monitoring if the supplier is onboarded.