If there is one thing the last year has highlighted, it is how fragile many businesses’ supply chains are. Even small changes and adjustments can have a huge impact on your supply chain, which can affect your customers, employees, and your bottom line. But there are a few things you can do to limit disruptions to your supply chain.
Transporting materials takes time, and if you’ve been dealing with large scale shipping for a long time, you know it often takes longer than anticipated. This can lead to out-of-stock situations that leave your business hemorrhaging profit.
But, by planning extra days into your supply chain, anticipating delays before they happen, you buy yourself extra time, and extra stock. While this can be an expensive method of avoiding disruptions, it is incredibly effective. By planning your supply schedule with added slack, you can eliminate unforeseen disruptions.
Protect Your Vulnerable Points
The increasing globalization of our world has led to a complication in the global supply chain. As everything is interconnected, even a small issue anywhere on Earth has the potential to throw off the global supply chain. One way to help manage these disruptions is with insurance.
Trucking companies should carry standard insurance, but you can elect to increase this amount. By protecting your supply chain with insurance, you help manage supply chain risk to your business, and more importantly, your customers.
Diversify Your Supplier Portfolio
Variety is key in many areas of life, and your supply chain is no different. By having several suppliers in different locations, you can help mitigate disruptions. This way, if there is a supply chain issue with one supplier, you have other suppliers providing you the same materials. While this may not eliminate disruptions, as you will still be missing the materials expected from the supplier experiencing delays, it will give you some extra cushion, making a disruption less disruptive.
Having a wide net of suppliers in varying locations is easier said than done, but it will be worth it. Simply by expanding your supply network, you can protect your supply chain from most supply chain disruptions.
Supply chain disruptions are a nuisance for everyone, business owners, customers, employees, and suppliers. But by adding slack, protecting your vulnerable points, and diversifying your suppliers, you can avoid most supply chain disruptions that might come up. With a little planning and extra preparation, your supply chain can become stronger and more secure.
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