As you try to position your business for success in the current environment, you need to take a closer look at supply chain resiliency strategies. Supply chain issues continue to abound in the current environment, and you might have difficulty figuring out how your company will overcome them. By developing a diversified strategy that can handle stress, you can maintain an edge over the other companies in your industry. You might be comfortable with your current supply chain, but you must be proactive about its management. What are some of the most important steps you need to take if you want to construct a more resilient supply chain?
1. Have Capacity Buffers
First, you should try to maintain higher inventory levels. What this means is that you may want to have a safety stock in place. Even though you might not like having to maintain additional inventory, it will be helpful when you realize that you don’t quite have enough inventory to meet your customers’ needs. Buffers can be expensive, and you may have a hard time justifying them to the rest of the business, but you need to have an extra safety net in place. Because the supply chain challenges do not show any sign of going away in the near future, you must have an extra safety stock you can rely on.
2. Diversify Your Manufacturers
You should also diversify your manufacturing bases. You may have a strategy that has worked for sourcing in the past, but you need to think carefully about how you can switch to new suppliers in different locations. The goal is to diversify your network. You don’t have to worry about a single supplier sinking your entire operation. You may also want to reach out to your current suppliers to see if they have factories in another location that you can use to fulfill your orders. That can make a significant difference when you try to craft a more resilient supply chain.
3. Move Your Operations Closer To Your Hub
You may also want to shorten your supply chain. Right now, there are lots of companies that have supply chains that go through multiple countries. Even though this might be a way for you to save money, it can also increase the risk of something going wrong. If your supplies have to cross through multiple countries, there are more obstacles that you have to overcome. If one of those countries has a significant issue, it can disrupt your entire supply chain. That is why you may consider moving your operations closer to home.
4. Automation Is Critical
If you want to build a strong supply chain, you have to reduce the chances of something going wrong. A significant percentage of supply chain issues tend to come from human error. One of the ways to eliminate human error is to rely on automation tools. There are plenty of tools available that can help you improve your supply chain. You need to consider your industry requirements, your level of technical expertise, and what your overhead expenses look like. That way, you can find the best possible tool to automate many of the tasks you are used to completing by hand.
5. Always Keep the Line of Communication Open
Finally, do not forget to keep the line of communication open. Even though you are busy, you need to keep in touch with your suppliers. That way, you encourage your suppliers to keep in touch with you. If you need to change your order, try to let your suppliers know as early as possible. That way, you give them plenty of opportunities to help you fix the situation. If you keep your suppliers in the loop, you can strengthen your relationship with them. That way, you can incentivize your suppliers to go the extra mile to meet your needs because they will value your business.
Build a Stronger Supply Chain
Ultimately, supply chain management is more difficult than it has ever been in the past. You must identify tools that can help you craft a more resilient supply chain in the current environment. There are plenty of tools that can help you increase your business management skills, and there are experts who can help you find the right tools to meet your needs. If you want to position yourself for success moving forward, you may want to reach out to a consultant who can help you improve your supply chain. Then, make sure you use the right tools to help you position your company for success in the future.