How should businesses react when the supply chain is disrupted? The current pandemic has disrupted not only personal lives but also had an immense impact on logistics across most industries. In fact, 94% of Fortune 1000 companies are experiencing supply chain disruptions. Read on for a closer look at how organizations can prepare for potential disruption.
Firstly, supply chain is used to describe the network of suppliers to produce a specific product. That being said, a supply chain disruption happens when there is an interruption during the manufacturing process along with the supply network. The disruption can cause other delays along other sections of the supply chain. While there is no way to fully secure your supply chain from disruptions, you can prepare for them in a variety of ways.
Firstly, a business needs to strategize an emergency plan for a disruption. The plan should include backup suppliers to obtain products and move goods if required. You should also determine the specific steps you’ll take if there is a disruption. Make sure to also set aside an emergency fund to help offset the loss your business takes if sales are affected.
When setting up your plan to mitigate supply chain disruptions it’s smart to consider diversifying suppliers in your supply chain. For example, these can be suppliers locally or from different areas in the world. You can also create backup suppliers in case another one has a disruption. Check out the infographic below for more ways to help protect your business in case of a supply web disruption.
Infographic created by WSI, a fulfillment logistics company