Thankfully, some of the worst is behind us when it comes to global supplies. COVID didn’t help. But now that you have been baptized with fire, as it were, you are now in a position to think of ways to limit supply chain damage so it doesn’t have quite the same impact in the future.
Strategize Against Product Loss
Disruptions are common across all sectors. And when things are uneasy, you can lose product, amounting to major financial and economic impact. So it makes sense to come up with a strategy for protecting against this. Insurance is a major consideration. With the right insurance policies, you always have the support you need when things go wrong. You can use this price comparison tool to check which freight insurance provider suits your needs now and later on.
Source from Multiple Suppliers
One of the main reasons businesses are hit so hard when there are supply chain problems is that they often use just a single supplier for each item they need. Or even a single supplier for everything. Of course, this is a huge mistake because if your only supplier is hit hard, it affects you as well. Therefore, it always helps to source from multiple suppliers, even for the same items. And always have a handy list of alternative suppliers at the ready in case it goes wrong.
Limit Supply Chain Damage with Risk Management
Risk management should always be a top priority when it comes to company governance. Assessing for risk, and planning actions, will help alleviate some of the worst that can happen. Ultimately, you should first identify what can go wrong in the supply chain and the different scenarios that provide a solution. Of course, you can’t plan for every scenario, so it helps if you also have measures in place, such as contingency plans that can prevent the worst cases.
Improve Supply Chain Visibility
There are various stages of any supply chain, and not all are apparent. Each stage of an operation comes with its own set of risk factors, and anyone going wrong can disrupt the entire overall process. Until now, you may have gotten along just fine being aware of your end. But what happens when something stops further down the line? You may not even know what the issue is. This is why working with reliable and transparent partners is absolutely crucial today.
Often Review Your Supply Operation
There’s no point in going out of your way to assess, plan, and strategize if you aren’t going to put these to the test and scrutinize your processes. Even the best risk strategy is ineffective if you don’t amend and update it according to sector changes. It is recommended that you review your supply chain policies once per year for an existing policy. However, it helps to assess and review your strategy according to any changes to it, such as switching suppliers or products.
Summary
The last supply chain crisis in 2012 cost around $400 million globally. So it helps to think of ways to limit supply chain damage. Holding the necessary insurance policies is a major help. But you can also come up with risk management plans and ensure you review your operations.
