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supply chain breakdown solutions

Solutions for the supply chain breakdown

Apr 8, 2022 11:57:26 AM / 0 Comments / by Clients First Business Solutions

Supply chain breakdowns can seem disastrous, but the occasional disconnect in a lengthy supply chain is nearly inevitable. Preparing for these issues mindfully makes it possible for businesses to sail smoothly past potential disasters and keep business moving even when disruptions threaten to shut things down.

Complete a Supply Chain Vulnerability Audit

It's important to identify and understand the weak points in one's supply chain. A supply chain vulnerability audit can point out the most problematic areas. The audit should outline lead times, identify areas with little to no diversification, and highlight any points with poor visibility. The results of the vulnerability audit will help inform all subsequent steps in managing supply chain breakdowns.

Put Contingency Plans in Place

Create structured contingency plans for all weak points in the supply chain. Build diversity in any areas that rely on a single source: this way, a supply chain breakdown from one vendor doesn't create a cascading domino effect that causes the entire supply chain to grind to a halt. It's also a good idea to increase visibility in any areas where detailed insights are lacking. Functional supply chain management software should allow for deep insights with minimal digging.

Build Up Inventory

In areas where lead times are dangerously long, it's wise to build up inventory to protect against supply chain breakdowns. Maintain a healthy stock of essential parts and pieces to shore up the supply chain against lead time disruptions. This way, other parts of the chain can remain functional even when the supply chain slows down in particular areas.

Develop End-to-End Visibility

Ensure that the supply chain allows for total end-to-end visibility. This means that it's possible to check in on every point in the chain quickly and efficiently. Make sure skilled supply chain managers are in place to monitor the entirety of the chain for potential disrupters like price fluctuations, cyberattacks, faulty products, and transportation failures or delays. All major events such as natural disasters or pandemic-related shutdowns must be monitored closely to determine if, when, and how they will impact the supply chain.

Identify Backup Suppliers

Have backup suppliers in place at every point along the supply chain so a ready fix is at hand in the event of a disruption. Identifying alternate suppliers for each portion of the supply chain makes it easier to plug in these alternates quickly in the event of a major disruption.

Communicate With Customers

If you're anticipating a supply chain breakdown, consider maintaining clear and efficient communication with customers at all times. This begins with collecting the right information to get in touch with buyers. An accurate and up-to-date email list and phone book for all active customers is crucial in these instances. Alert customers to the potential for delays at the earliest sign of trouble to preserve the business' integrity and maintain customer loyalty through hard times.

With these smart strategies, it's possible to manage supply chain breakdowns quickly and efficiently. Proper preparation will help keep customers happy and ensure reliable deliveries even in the face of major challenges.

Please contact Clients First Business Solutions for a free evaluation of your current manufacturing and supply chain operations. We’ll work with you on a plan to implement Dynamics 365 Business Central or Dynamics 365 Finance and Supply Chain Management to improve your bottom line.

 

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