Getting your small business or startup into the groove can be immensely satisfying. After all your hard work and dedication, having your operations up and running smoothly can feel like a major accomplishment, and it is. When everything is firing on all cylinders, it can seem as if that momentum could carry you all the way through to the day you retire.
Unfortunately, that’s rarely the case. No matter how well-prepared you might be, there are bound to be some stumbling blocks along the way that can wreak havoc on your supply chain. Look no further than the COVID-19 pandemic, which has created countless headaches for even the largest companies around the world.
Even after things finally settle down, you’re still at risk of disruptions caused by transportation issues, supplier woes and natural disasters. This is why it’s crucial to know how you will respond in the face of a disruption. Unfortunately, 63% of companies don’t use technology to track the performance of their supply chains, so they may be bleeding money without even knowing the cause.
Your disruption mitigation plan should focus on preparation and alternatives for the worst-case scenario. For example, if one of your suppliers or vendors fails to deliver, you need to know how you will source the materials and products you need. If you can diversify your supplier base to include vendors based around the world, you hopefully won’t be affected too badly if shipping routes are snarled in one area of the globe. Another successful strategy is to cultivate relationships with backup partners that you can reach out to quickly in the event of an emergency.
No one wants the rhythm of their operations to be thrown off for any reason, but it can and will happen. When it does, it’s always better to be prepared. For more tips on how you can mitigate supply chain disruptions to your business, take a look at the accompanying resource.Infographic Created By WSI