From the pandemic to a ship getting stuck in the Suez Canal, there’s been no shortage of supply chain disruptions recently. Businesses without contingency plans were the hardest hit because of an over-reliance on “just in time” manufacturing. Others because their supply chain was so fragile that the slightest disruption upset things.
A smooth, efficient supply chain is absolutely essential if you wish to succeed as a manufacturing business. Think about the word ‘chain’: the individual components may be strong, but it only takes one faulty link to destroy the whole thing.
Take a look at your own supply chain – how resilient is it? A supply chain isn’t only comprised of a supplier and manufacturer; there are lots of other parts to consider: the delivery transport companies; warehouses and storage facilities; retailers and, of course, your clients and customers.
A successful supply chain – that is, one with maximum profitability at every level – must enhance and balance performance of each level from the very bottom to the very top, and effective management is needed to achieve this.
5 Tips to Mitigate Supply Chain Risk
Here are five best practices to consider when looking to improve your supply chain.
1. Increasing Visibility
Increasing supply chain visibility simply means improving the transparency of the system so you can easily track the status of your product at every stage – from the initial supplier right through to the consumer’s hand.
Collaborate with each supplier and service provider to create a well-oiled machine that is more like a network than a chain. Be transparent yourself and share your inventory status with everyone else, as this will mean that you’re on the same page and can better anticipate each other’s needs without constant back-and-forths.
2. Making Use of Technology
Technology is your friend when it comes to improving your supply chain, so it’s a good idea to invest in both of them.
Technology like GPS trackers and other track-and-trace systems can help improve visibility, robotic technologies can speed up warehouse operations, and RFID tech and smart sensors can streamline your delivery service.
Through 2024, 50% of supply chain organizations will invest in applications that support artificial intelligence and advanced analytics capabilities
3. Managing Supply Chain Risks
Risk management is a massive part of achieving a smooth supply chain. No venture is ever without its risks, so it’s important to be realistic and identify these. As factories closed and supply chains dried up in the aftermath of the pandemic, risk reduction has taken on even greater importance.
Clarity is vital to a healthy supply network, so weigh up your risks and potential opportunities, giving equal attention to both.
4. Analyse & Never Stop Growing
Once you’ve got a good supply chain, it can be tempting to rest on your laurels and let things carry on as they are. It’s important to continuously analyse and measure the results of every new system you try. Things can change in a flash in the business world, so you must never get complacent. There is always room for improvement, so stay up to date with the latest strategies and technologies that can help you, and always keep yourself open to change.
5. Using a Global Sourcing Company
A solid supply chain can be greatly improved with the assistance of a global sourcing company like Darian. We are a long-standing company who specialise in sourcing manufacturing supplies and more to our clients across the UK and Germany.
We can help streamline and optimise the performance of an existing supply chain, or, if you’re just starting out in business, we can grow a chain from scratch that maximises your profit and helps you focus on growth
Follow these five tips and you’ll be well on your way to having an efficient and effective system in place. If you can master supply chain management, your chances of achieving business success will be greatly improved.
Need support streamlining your supply chain? Contact Darian today on 01858 433096 for expert advice and solutions for all your supply chain queries.