When everything externally is correct, business works like magic. However, challenges crop up when there are economic instabilities, epidemics, and pandemics. 2020 has been the year of the COVID-19 pandemic outbreak that has adversely affected business and multiple organizations. One of the crucial effects of the COVID-19 pandemic outbreak is the supply chain disruptions. Simply put, the supply chain disruptions create uncertainty for customers and business owners alike. It also draws attention to the supply chain dependencies that business owners are otherwise unaware of and need to resolve.
Strategies to correct disrupted supply chain by Gary Saitowitz
At times, the supply chain disruptions are localized and small and can affect only a few industry verticals and business firms. On other occasions, the supply chain disruptions occur globally and require a proper plan to resolve the same. According to Gary Saitowitz, businesses affected by the COVID-19 pandemic outbreak can resolve their supply chain disruptions by implementing the following strategies:
- Emergency plan
It is useful to have a backup plan concerning the supplies. As you are all set to develop this emergency plan, you need to think of various ways to move the goods in and around the market to reach your customers. You should also create an emergency budget for the same.
- Creating inventory
You need to develop a stockpile of the required supplies that can cover your business for many months. It means you need to store the finished goods, raw materials, and components to maintain the company, even if the supply chains get affected for a while.
- Carry out an audit for vulnerable supply chains
It is essential to devote time to risk analysis and focus on the supply chain's weakest links. It will assist you to concentrate on where you are required to find the alternatives. It is also useful to analyze the potential political, environmental, and social conditions which impact the supply routes.
- Recognize backup suppliers
You need to check what the other suppliers can provide if your current supplier cannot cater to your business needs. Hence, you need to identify suppliers in various other locations and develop a bond with them to help you as and when required.
- Make the supply base diverse
Similar to an investment portfolio, a minimal diversification in the suppliers is a favorable aspect. When you create a supply chain, you need to have various suppliers in multiple places. It will ensure that you carry out your work despite any disruption that suddenly occurs. Last but not least, you must partner with an ace logistic expert. It would be best to find a supply chain and third party fulfillment companies having the expertise and resources to assist you through any economic downswing or instabilities that occur from time to time expert should have the resources that will allow you to identify alternative courier solutions when you require to carry on your business. With this expert's help, you will also know the best way to manage disruptions and find answers for surcharges and fees. These are a few tactics that will help you to resolve your supply chain disruptions better. With business It is very important to also take care of yourself at home fitness.