Your supply chain is the veins and arteries of your business; responsible for the basic survival of a business through the steady “back and forth” distribution and inflow of goods and products. From the organisation of personnel to the management of transportation methods and routes of supply, your supply chain guarantees both business continuity and growth.
Now, what happens when this vital lifeline in a business is damaged? This results in the worst-case scenario for any business owner: A total shutdown of day-to-day transactions and operations which cripples the organisation almost instantly. These disruptions lead to a loss of revenue and multiple delays in schedule, slowing down the business calendar and ultimately losing customers.
What are these occurrences that could adversely affect your supply chain?
These disruptions are largely man-made but on occasion, they can be caused by nature. Man-made disruptions in the supply chain are vast and range from unstable economic climates to delays in payments and problems caused by ill-equipped or incompetent personnel, handling storage, maintenance and logistics.
Naturally occurring phenomena such as rainstorms could in part lead to flooding thereby limiting transportation and movement of products. This single event quite literally paralyses a business when measures are not put in place to check them. In the bid to build a successful and stable business, the state of the supply chain is paramount, this means these disruptions cannot afford to be tolerated or condoned. Strategies must be set in place to get ahead of scenarios that threaten the supply chain, the lifeline of a business. Navigating through these problems requires a degree of foresight and a level of sturdiness. In formulating policies, businesses must go the extra mile in enforcing these policies among the workforce or staff, this puts a lid on the probability of disruptions caused by personnel.
To wade through these disruptions, a certain level of threat assessment and business acumen is needed. Analysing threats and setting up policies to neutralise these threats would require expertise and experience. Most organisations attempt to tackle this on their own, but in the long run, this takes a negative toll, in conclusion, it is advisable to outsource supply chain threat evaluation to a partner like Loft to expose potential disruptions in your supply chain and ultimately neutralise these threats.
Ways Of Managing Disruptions In The Supply Chain
- Setting in place a series of backup modes of delivery to counter the problems posed by transportation: As we all know, no matter how watertight plan A is there is always a discrepancy, an outlier that results in a need to resort to an alternative. Furthermore, alternative routes should be sought and modes of delivery and transportation should be broadened and expanded
- A rigorous process of vetting during recruitment of personnel: One of the major causes of disruptions in the supply chain is due to faults on the part of personnel, to counter this, it is advisable to thoroughly screen individuals before recruitment thereby reducing the chance and probability of errors in things such as order fulfilment, delivery mistakes and slow movement of goods.
- Acquiring insurance: This is a safe way to minimise loss in the event of natural disasters, when this happens you are able to recoup a certain level of what has been lost.
- Reexamine supplier locations and viability: Geographical positioning plays a vital role in the effectiveness of your supply chain. A shorter distance between warehouse, supplier, wholesaler and retailer makes a huge difference in maximising profit and limiting loss.
Get ahead of disruptions with Loft
Loft is specifically designed to take all your supply chain worries away, supercharging your business operations and allowing you to scale faster. With Loft, you are always ahead of every challenge in your supply chain and can focus your capacity on delighting your customers with better products & services. We make warehousing and last mile fulfilment services an enabling experience for businesses, allowing them to meet demand and scale their business without the constraints of traditional warehousing and logistics.
With Loft, businesses become agile in managing the disruptions in the market, beating their competition and expanding capacity(when needed) for a fraction of the cost required.