When your supply network is running fluently, it’s all too easy to forget about it. However, what should you do when your supply chain is disrupted? The COVID-19 pandemic disrupted not only people’s personal lives but also interrupted supply chains across several industries. In fact, three out of four supply chains were affected by the pandemic and experienced disruptions. . Read on for a few tips for preparing for this issue.
A supply chain disruption occurs when there is an interruption in the normal process of manufacturing and delivering goods. With each part interlocking like a chain, any disruption on the supply chain can impact others. For example, you might need a particular raw material for finishing a product and it has been delayed due to a natural disaster. In turn, this disruption delays the creation of the good along with the rest of the supply chain. While there is no way to fully protect against disruptions, you can prepare for them in a few ways.
Supply Chain Disruption Plans
First, you should create an emergency plan that includes ways of obtaining raw materials and products. You could also create an emergency fund to help bridge the gap between a loss in sales. A digital twin is also a good idea to use because it can predict how supply and demand could impact your supply network.
Diversifying your suppliers and developing relationships with backups is also a great way to prepare for inevitable delays. This can help reduce the impact of a disruption, particularly if your suppliers are located in different areas around the world. Having extra inventory on hand can also help mitigate disruptions. These should be your products in the most demand and identify the parts that are necessary for producing those final goods. While this step may increase your carrying costs, it might be worth the expense if you face a delay.
Check out the accompanying resource below for a few more ideas on how to handle inevitable supply chain disruptions.
Infographic created by WSI, an eCommerce fulfillment company
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