6 Ways to Improve Supply Chain Resilience

Supply chain resilience is at the heart of current supply chain management thinking. Understanding the concept, and where to invest in resilience, can lead to supply chains that respond quickly to and recover from costly disruptions. Companies with more resilient supply chains have weathered the storm much better than those caught unprepared. Supply chain problems don’t have to be extreme, as the COVID-19 shutdown has had negative effects on businesses. Working on supply chain resilience is the best way to prepare your business for the next disruption, no matter its size.

6 ways to improve supply chain resilience

There are a few steps any company can take to provide a layer of flexibility in their supply chain. Instead of hoping we never have another major disruption in the supply chain, follow the tips below to make a plan for when this happens.

  1. Post your stock

Whenever possible, try to spread your inventory across multiple locations. Everything from broken equipment to extreme weather events can make it difficult to quickly access items in the warehouse. By having multiple sites to take advantage of, the potential for such disruptions is reduced.

A good inventory management system must be put in place. The ability to quickly find supplies across multiple locations and manage demand at your warehouses is vital to seeing the right supply chain and to avoiding interruptions caused by inventory issues.

  1. Close communication with suppliers

Poor communication with suppliers reduces supply chain visibility and opens your business to delays. In addition to using a program that allows you to track Supplier performance And respond according to the latest data, you must remain in close contact with suppliers. By establishing relationships with suppliers, you can keep each other aware of issues that may affect shipping and share solutions to those issues.

  1. Work with multiple suppliers

Many companies have preferred suppliers who are loyal to them. While we have just gone past the importance of establishing a strong relationship with suppliers, limiting that relationship to a smaller number increases the chance of disruption. Often times, reasons for delays with one supplier will have no effect on another supplier. Sourcing your materials from a variety of suppliers, located in diverse regions, will reduce the impact when one encounters delays.

  1. Add more carriers

This tip is like adding more suppliers and relies on the same logic. You’ve probably noticed that if you order something from a large online retailer, the carrier that delivers your package will vary from order to order. This helps ensure there is a backup carrier in case something goes wrong with the primary selection.

Shipping companies have different rates and policies for different conditions. By working with several carriers, you can choose the carrier that offers the best rates for each individual order.

  1. Be aware of the data

Companies no longer need to rely on intuition calculations or spreadsheets to provide their supply chain anticipation. With the right tools, you’ll be able to increase the efficiency of your process, so sharp increases in demand don’t leave you with a supply that hasn’t arrived yet.

Good data analysis will also give you deeper insights into a file Inventory ManagementThis allows you to identify the causes of shortages and overcrowding. Artificial intelligence and machine learning algorithms can also monitor local and global conditions to give you an idea of ​​potential disruptions.

  1. Increase transparency

Today’s customers expect to be kept informed about the pending arrival of their package. Modern technology allows you to eliminate data silos, reduce bottlenecks, and improve supply chain visibility.

Notifying the customer when they discover an issue that may affect the arrival of their product will prevent them from getting frustrated while they wait for the shipment notification that doesn’t come. Building this level of transparency has the side effect of making the entire process more efficient and reducing the problems caused by disruptions.

StockIQ complete platform for Intelligent supply chain planning. Our tools will provide you with the resources you need to stay current on evolving situations and plan effectively for all aspects of your supply chain. If you want to learn more about how we can help your supply chain become more resilient, or would like to see a demonstration of our product in action, call us today.

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