Supply chain disruptions like the pandemic, attacks on shipping in the Middle East causing change of routes and delivery delays, the CrowdStrike global outage and Cyber-attacks happen regularly and without warning.
Here are some tips which may be useful reminders in reducing disruptions to your business.
Diversify Suppliers
Identifying and engaging alternative suppliers will take time and effort, however this can ensure supplies at a critical time.
Inventory Management
Inventory management plays a crucial role if there is a supply chain disruption. If you depend on a Just-In-Time (JIT) system, it may assist to have an agreement with a friendly competitor where you both provide each other inventory for a short period.
Building Strong Relationships
Relationships with suppliers are vital. Open lines of communication and mutual understanding can lead to more flexible and responsive supply chain practices.
Risk Assessment
Continuous reviews of key risks to the business, including monitoring your supply chain can allow businesses to identify and address issues before they escalate.
Business Continuity Planning
To make your business resilient, whether it’s a loss of a major supplier, severe storm damage, or any number of other disasters, you need more than a Business Plan. You’ll need a Business Continuity Plan that outlines the immediate responses and goals following a major incident, as well as your path to recovery.
Your Contingency Plan will need to include a Risk Management plan, Incident Response plan and finally a Recovery plan.
Supply chain disruptions are happening more frequently and can have flow on effects across business sectors. By managing suppliers and inventory, fostering strong relationships, and conducting ongoing risk assessments and planning, businesses can build a more resilient supply chain and minimise disruptions.
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