One way that supply chains can improve their resilience and efficiency is by diversifying. Here we have put together some of the key global supply chain benefits.
How to Deal with Supply Chain Disruption
Supply chain disruption can typically happen for any number of reasons, including security breaches, natural disasters, unreliable suppliers and component shortages.
However, in the current climate, one factor is affecting the global supply chains more than anything else: the COVID-19 pandemic. In such upheaval, it is more important than ever to handle disruptions in the supply chain as effectively as you can.
In this blog, we take a look at what you need to focus on when you are dealing with supply chain disruption and how you can work on your long-term recovery.
Be flexible and adaptable
The first thing to acknowledge in an unexpected and disruptive situation is that you don’t have to stick to your normal processes. A crisis is the time to analyse what is working and what isn’t, and understand that you won’t be able to carry on as usual.
For example, are all the suppliers you are working with delivering as they should? Do you need so many different suppliers or will that over complicate your supply chain in the current climate? It’s important to ask questions like this and adapt your model to the situation.
Have open communication channels
An essential part of effectively managing supply chain disruption is communication. As they say, communication is key. As a company, you need to find a way of maintaining communication channels with all aspects of your supply chain so that everyone is on the same page when it comes to any changes or adaptations you need to make.
It is often best to have one partner you can rely on to coordinate communication in your supply chain. That way, key information will not get lost and you know who to go to as your source for updates on your different suppliers.
Centralize your decision making
One of the best ways to prevent chaos in a time of crisis is to centralize decision making and ensure that experts are in charge of the key decisions in their field.
For example, if you were to work with an independent component distributor like Rebound Electronics, they offer supply chain support from a single point of contact. They have an existing network of suppliers and act as a partner to electronics manufacturers, whatever the market conditions, allowing them to prevent additional problems in the supply chain in times of crisis.
Assess your supply chain
Another important action to take when you are experiencing supply chain disruption on a large scale is to thoroughly assess the supply chain itself.
If you have a distributor who acts as a single point of contact for all of your suppliers, this process is far easier. They can act as a strategic partner and help you understand the decisions you should make in order to best deal with the situation.
Look to the long-term
A final piece of advice when it comes to supply chain disruption is to look to the long-term, even though it seems difficult. If you are purely being reactive and looking to solve short-term issues, it will be harder to fully recover as you cannot see the bigger picture.
When there is a disruptive global event, such as the COVID-19 pandemic, it is also an opportunity for you to reshape your business model. Cut what isn’t working, restructure your processes and shake things up for the better.
We hope this article has been useful in helping you understand how to deal with supply chain disruption. If you have any further questions, you are welcome to get in contact with our team.