The global supply chain is experiencing a significant disruption due to the pandemic, requiring strong resilience for survival.
Since 2020, transportation networks worldwide have still struggled to cope with demands, and pandemic-related shortages still challenge many companies. Several businesses were in crisis mode due to the pandemic, and according to the Institute for Supply Management, more than 80% believed that their companies would suffer greatly from the COVID-19 restrictions.
Therefore, it should be a top priority for players in any supply chain to develop and deploy strategies to make their supply chain more resilient and crisis-proof in 2024 and beyond. Let’s take a look at the top ways to crisis-proof your supply chain.
1. Have Multiple Supply Sources
Businesses face a variety of problems, particularly during times of crisis, that may impair your supplier's ability to meet obligations. It is, therefore, essential that you have a diversified supply source.
Although the rollout of vaccines has helped reduce the impact of the COVID-19 pandemic on supply chains, several countries are still lagging. Moreover, those who rely on international logistics and inputs from multiple countries have to consider alternative supply sources in their procurement activities.
2. Make Safety a Top Priority
Safety should be a top priority for any business. To keep operations going smoothly, especially during a pandemic, employees must have a safe environment to work in. This also extends to other segments of the supply chain. It is crucial that you only work with companies that observe adequate safety protocols. This is because another company’s carelessness could have an impact on you.
3. Leverage Digitization and Connectivity
Technology has increasingly enabled connections among supply chain players across the world. This means better opportunities for seamless supplies and logistics that can be leveraged as a crisis-proof.
Another tip is to increase your end-to-end visibility. It is crucial to have a good insight into several factors that impact the supply chain, notably as they affect your inventory. Full cooperation should also be established with suppliers to ensure that they satisfy your needs on time. Visibility also includes warehouse management across your distribution network, transportation tracking, and in-house and outsourced production, among other things.
Finally, strengthening your partnerships is also vital because poor communication can cause lots of unpleasant experiences. This can lead to late orders, inventory shortages, missed shipments, and more. To crisis-proof your supply chain, it is imperative to prioritize data sharing and collaborations with partners across your supply chain in order to achieve resilience in your supply chain this year and beyond.
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