Practical Solutions for the Supply Chain Breakdown in Your Business
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 them moving even when disruptions threaten to shut things down. Here are tips and solutions for the supply chain in your business.
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's 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.
What Is the Best Overall ERP for a Supply Chain Business?
Depending on the business needs, two ERPs stand out: Acumatica and Microsoft Dynamics 365.
Acumatica is a cloud-based ERP system with a "no-user license cost" policy allowing selected employees access to vital information. Acumatica is ideal for remote workers because team members can view data from all devices, including tablets and smartphones. As a business grows, it can add suites such as manufacturing management, ProMRO, and service management.
The cloud-based Microsoft Dynamics 365 offers multiple solutions for companies, like flexible programs for global finance departments, supply chain and manufacturing management. This software can meet a business's needs by connecting key employees and working with existing applications and systems for continuity and efficient workflow. Also, it takes little time on average for employees to adapt to Dynamics 365 programs.
Implementing an adaptable ERP system will benefit a business by increasing production, decreasing operating costs, and improving customer satisfaction. Clients First Business Solutions helps streamline ERP solutions from supply chain issues to manufacturing. For more information, call us at 800-331-8382 or email email@example.com.
Mitigate Supply Chain Impacts with Manufacturing ERP
Six Supply Chain Transformation Trends for Manufacturers
eBook: Smart Maintenance for Today's Supply Chain
What's New in Dynamics 365 Supply Chain
This ebook and self-assessment is for a maintenance or operations manager who:
- Wants to reduce maintenance-related disruptions in production.
- Manages maintenance for buildings or plants, or across large production facilities
- Is ready to position maintenance as a driver of efficiency and cost savings for the business by improving equipment effectiveness, reducing machine failures and shutdowns, and maximizing asset longevity.
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 Acumatica, Dynamics 365 Business Central or Dynamics 365 Finance and Supply Chain Management to improve your bottom line.