In the past few years, many organizations have focused on adjusting their supply chains, reevaluating and negotiating arrangements with service providers and suppliers to lower costs, reduce turnaround time, and decrease on-hand inventory. These changes have been beneficial as they have improved profit margins, but they also increased the likelihood of supply chain disruptions.
The COVID-19 pandemic has made supply chain disruptions all too common--from the shortages in paper supplies to the oversupply of oil. Here are some best practices that will help organizations to prevent supply chain issues from becoming critical disruptions.
Supply chain analysis begins by analyzing demand. There needs to be a complete analysis of customers' demand (both short-term and long-term) for their products and services. Gone are the days when order history dictates future demand; many companies are scratching their forecasts and starting over.
Work with your customers
Many companies are facing the difficult decision of whether to pay their suppliers, their landlords, or their employees. Everyone is feeling the economic downturn. Be willing to provide accomodations where you can. Work with your customers to find compromises so that you can both meet your most critical needs.
Treat suppliers the way you want customers to treat you
There's a major difference between treating a supplier like a vendor as opposed to a trusted business partner. Suppliers will be willing to make accommodations and go the extra mile for companies that treat them as trusted business partners. Be transparent and honest with suppliers about your needs.
Stay current on the developments in the industries of your customers and suppliers. Pay attention to signs of financial strain--whether it's a missed payment or simply a lack of responsiveness.
Re-evaluate your employees
Supply chain management has never been more crucial. In order to have the best handle on your supply chain and see positive impacts to your bottom line, it’s imperative that you have only the best talent working as operations managers, logistics analysts, purchasing managers, and any other position in the field of supply chain management. Fortunately, firstPRO has a comprehensive understanding of the demands of these positions, and we know how to find the best talent for your organization. Please do not hesitate to reach out to us if we can be of any assistance.