Click here to get this post in PDF
One of the big realizations that many businesses realized in recent years is their supply chains are not as secure as they thought. Many businesses faced issues with their supply chains, whether due to the pandemic or other factors. The resulting disruption resulted in millions in lost revenue. While many businesses recovered, they likely don’t want to experience that disaster again. Fortunately, it is possible to make changes so your business won’t have to go through those issues again. Here are some possible solutions.
Shorten the flow
One of the biggest problems with the current supply chain is its global nature. While it is nice that companies can source materials from thousands of miles away at a cheaper cost, that can cause many delays if the connection is cut. Additionally, if transport in the supply chain is short, materials won’t move. So, it is more reasonable to shorten the supply chain. Look for local suppliers that can provide the materials and services within a short distance. For example, if the supply chain is internal to a country, there is no worry about wars or political trouble disrupting it. It also boosts the local economy. The problem is that it can get expensive for companies since they don’t benefit from the lower prices of other countries. Your company must shop around to find the perfect balance between price and dependability.
Stock up on supplies
A big way to avoid material problems for companies that still import is to build a larger stock. Modern business methods focus on using raw materials as quickly as possible. It saves money in storage while also ensuring a quicker return on investment. However, building a warehouse and maintaining a long-term supply is better. Nowadays, it is much easier to build a warehouse. Click here to see how pre-cast concrete structures and retaining walls help in quick and affordable construction. Your company would be able to build a decently large warehouse in less than a month and with a decent price tag. This warehouse could pay for itself by storing months of raw materials, ensuring little disruption.
Improve efficiencies
Another issue with the supply chain is inefficiency. So many companies got comfortable with their supply chain processes and left them alone. However, they likely developed inefficiencies that caused delays. Bring in an efficiency expert to look at the processes so that they can identify useless or redundant steps. Additionally, the expert can clock and track the process to see how fast it is exactly. Reducing that to the bare minimum is the goal. With more time saved, the better supply chain.
Prepare for market changes
Finally, demand can change with the seasons. Preparing for high-demand times can reduce the chance of supply disruption. Planning with extra stocks and advanced preparation can be a big help.
Final thoughts
Businesses can’t trust the global supply chain right now. It is too easy to disrupt, which isn’t good for business. So, your company needs to implement some of the options above to avoid further shocks to the system.
You may also like:
8 Supply Chain Management Tips for Business Owners
From Dock to Door: 6 Strategies for Streamlining Your Supply Chain
Image source: Unsplash.com
