3 Ways to Manage Supply Chain Disruptions

Supply chains are extremely delicate. As the name suggests, a supply chain is a network of people, organizations, and activities that moves through a system of companies and suppliers, created to produce and distribute products. If only one of those chains is disrupted, it can have a significant impact on multiple aspects of your business. Before the COVID-19 pandemic, supply chain management was already something that could easily be disrupted. However, over the past few months, supply chains have become even more delicate.

Supply chain disruptions are defined by any breakdown in the production or distribution of a supply chain. It can be caused by many different factors, including natural disasters, quality issues, fires, machine breakdowns, unexpected surges in capacity, or a pandemic. It is not surprising that the COVID-19 pandemic has caused major disruptions in the supply chain of countless businesses across the world.

In a recent study conducted by the Institute for Supply Management, it was estimated that almost 75% of 628 surveyed businesses had experienced supply chain disruptions because of the pandemic. Countries around the world had to stop their ordinary activities in order to adapt to the demands of the virus, and those changes upend normal supply chain operations at every stage of the production line.

It is very important that companies prepare tactics such as building up inventory, creating an emergency plan, identifying possible backup suppliers, and partnering up with a logistics expert in order to avoid supply chain disruptions. However, disruptions are often out of our control. Here are three ways to manage disruptions in your supply chain:

  1. Take a step back

It is important for you to take a step back and evaluate the critical components of your supply chain. You should try to establish alternative suppliers for critical parts and products and understand what is crucial for your supply chain to continue to operate.

  1. Communicate with your clients

Customers are more likely to be understanding if there is transparency between your company and them. Without it, clients are left in the dark and are more likely to grow impatient and frustrated with your services. If you can be upfront about delays, why they happened, and what you are doing to overcome the issue, your customer base will likely understand.

  1. Safety comes first

Make sure to optimize your production and distributions strategies to ensure that your products are being produced, transported, and delivered in a safe manner. The safety of your employees, clients, and the safety of yourself is essential to keep your supply chain afloat.

Supply chain disruptions will occur – they are normal, and they are inevitable. However, it is very important that businesses are ready to deal with them when they inevitably arrive. At Thompson Ahern, we are ready to assist you and your business to ensure you can get through any turbulent time. Contact us at info@taco.ca for more information.

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