Business exposure due to risk is a vulnerability that all companies handle with essential business interruption policies. But what about the areas that can’t be handled with insurance coverage and can impact the flexibility and efficiency of your supply chain? How do you handle disruption due to minimal drivers and equipment capacity?
These operational demands for a shipper can cause havoc to a supply chain if not managed appropriately. In a time when supply chains are more dispersed than ever leaves an organization open for unpredictable events. So, here are some ideas to manage supply chain disruption:
INCREASE YOUR INVENTORY. Of course, this is easier said than done. The challenge is always the balancing of products, product quantities and location. In a volatile market of consumer demand, this balancing act can be taxing and certainly not an exact science but can assist in ensuring product is in market and available to customers.
EXPAND YOUR MARKETS. Are there critical areas that might need some additional movement of inventories? Look for new locations that inventory can be stored or where cross dock opportunities are available. This is additional cost but can reduce the risk during unpredictable times. Scaling your supply chain network up and down allows for flexibility and stability when needed.
HAVE A PLAN B. While first and foremost, you should collaborate with your transportation partners to understand the situation and determine the potential need for additional resources. Then have a Plan B. Do you need to further engage your routing guide for added carriers to help in the coverage of your shipments and deliveries? Make sure carrier relationships have already been developed and nurtured so when times are rough, those resources are available.
Address your network’s weaknesses with Operational plans that can assure you reduce any risk to your supply chain. Multiple approaches can minimize the risk and help ensure your product is readily available when it’s needed. Having ideas in your toolkit for supply chain disruption can now give you a competitive advantage in the market.