How to Manage Your Supply Chain to Cope with Coronavirus
The rapid onset of the novel coronavirus (COVID-19) pandemic has already had far-reaching effects on not only the U.S. economy but the entire world. Among the many systems upended have been supply chains.
Supply chain disruptions across the globe have prevented companies from continuing to distribute vital supplies to people that need them most. As the world struggles to get back on course in the middle of a global crisis, many businesses are asking what they can do to improve their supply chains and prevent these problems in the future.
Through a mindful application of supply chain management and optimization, companies are better equipped to deal with supply chain disruptions from COVID-19 when they arise, mitigate their impact if and when they do happen, or hopefully, avoid them altogether. In fact, the Harvard Business Review called coronavirus a wake-up call for the importance of supply chain management. This is what you need to know about how your company can better manage its supply chain and cope with coronavirus.
Analyze Your Supply Chain and Identify Potential Problems
The first step to optimizing your supply chain begins with a thorough supply chain analysis. Nexterus CEO Sam Polakoff explained to American Express that systematic analysis of the supply chain helps businesses recognize potential issues (such as having one source for a manufacturing product) and how travel and transit can cause potential disruptions.
Another part of your supply chain analysis comes in capacity planning. This means taking a long hard look at demand for a specific product and the ability of your production capacity to meet this demand. During the coronavirus pandemic, we’ve seen a pronounced effect on the global supply chain as concerned consumers are purchasing many items in much larger quantities than normal.
Without supply chain analysis and capacity planning, companies have found themselves ill-equipped to meet the increased demands of the marketplace. Bulk buying of products has resulted in shortages and empty shelves across the country. By instituting sound capacity planning and supply network mapping, businesses can create contingency plans that can hopefully help them better respond to surges in customer demand and keep the supply chain moving.
Optimizing Your Source is Key to Prevent Supply Chain Disruption
As mentioned above, there are many companies that rely on a single source for manufactured goods. This is also known as a “sole source.” That means your source is the one and only supplier you can go to for all the goods and products your company needs. This may sometimes help to reduce costs, but it also puts your business in a tight spot if anything happens to that source.
We’re already seeing what happens when companies rely on sole-source suppliers. Countries are imposing lockdowns on borders, and this has greatly disrupted the movement of essential goods and supplies. Additional restrictions on seafaring delivery and the continued decline of air freight are posing big problems for supply chains. Combine this with a lack of truck drivers for land-based delivery, and it’s easy to see what happens when you put all your proverbial eggs in one basket.
With a comprehensive supply chain analysis through Nexterus, businesses can identify these potential issues before they become a larger problem. Then, if a shipping route from a Chinese factory is disrupted, companies can find the backup options they need to keep the flow of goods moving.
Stay Safe With Supply Chain Risk Management
Supply chain disruptions are nothing new. A Deloitte survey revealed that 85 percent of global supply chains dealt with some type of disruption in the last year. And that’s before coronavirus brought the world to a standstill. In light of the current developments, the necessity for supply chain risk management has gone from a good idea to an indispensable strategy in keeping supply chains on track.
Supply chain risk management extends far beyond addressing issues when they arise. Instead, it is a proactive strategy that accounts for potential disruptions and better prepares your business to handle them. Of course, even the best-laid plans aren’t always enough to prevent supply chain disruptions. The current coronavirus emergency is a prime example of an event that few could have predicted.
It’s these unexpected issues that make working with a supply chain partner you can trust such a crucial part of protecting your business. When you work directly with a supply chain management partner, you’re working with a company that lives and breathes all things supply chain. Through a holistic application of supply chain risk management, your partner can help you to identify and address issues a business may not have considered on their own.
Nexterus Helps Companies Cope With Coronavirus
Nexterus takes advantage of the latest technology, including its game-changing and innovative Fusion Center, to provide clients with everything they need to optimize and manage their supply chain while instituting a supply chain risk-management strategy that makes sense for them.
Don’t let supply chain disruptions due to coronavirus sideline the supply chain of your business. Learn more about how you can partner with the supply chain experts at Nexterus to address your supply chain challenges and get your company back on track. Connect with Nexterus today to see what you can better do to manage your supply chain during these difficult times.