The supply chain is an incredibly complex part of the business that can directly impact its success. Often, numerous businesses, people, and processes make up the supply chain, which means that a lot can go wrong! This has been particularly true in recent years, largely due to the ongoing disruption caused by the pandemic as well as inflation. Issues in the supply chain can bring things to a grinding halt, create inefficiencies, cost money, and frustrate customers. This is why it is helpful to be aware of a few of the common supply chain issues and how they can be avoided/resolved.
Supplier Issues
As mentioned in the intro, several different businesses can be involved in the supply chain. You can control what happens internally, but you do not have much control over your suppliers. An unreliable supplier or unexpected issue could cause significant disruption that affects the entire supply chain. This is why it is important to choose suppliers carefully, maintain strong communication, and have backup suppliers that you can turn to.
Inventory Management
It is essential that you are able to strike the right balance when it comes to inventory levels. You want to avoid having excess stock as this will increase your holding costs, but equally, you do not want low inventory levels that could lead to missed sale opportunities. This is why accurate forecasting is key, as this will help you maintain healthy stock levels that will allow you to keep up with demand and keep your costs down.
Carrier Issues
The transportation of supplies and goods is a critical part of the supply chain. Again, this is an area where a lot can go wrong, whether this is unreliable freight shipping companies, weather disruption, or rising fuel prices. The key to avoiding carrier issues is to find reliable freight shipping companies. An effective way to do this is to use comparison platforms like Shiply. Here, you can compare quotes from numerous trusted freight shipping companies. This will help you keep your costs down while ensuring you have a company you can rely on to deliver items on time.
Global Factors
There are then various global factors that can affect the supply chain. As mentioned in the intro, COVID-19 and inflation are two clear examples of this. The pandemic caused chaos across supply chains, and many are still feeling the effects while inflation has led to increased costs, resulting in many suppliers going out of business. Unfortunately, not much can be done to control these global factors. However, you can protect your supply chain with contingency plans.
You should consider factors that can cause disruption and then find ways to mitigate the impact of these factors, such as finding a reliable local backup supplier. Utilizing open source bookkeeping software can also help you keep track of expenses and budget for any necessary adjustments in response to global changes. Additionally, securing funding through options like unsecured business loans can provide the necessary capital to adapt to unforeseen challenges and maintain a robust supply chain. These are a few of the most common supply chain issues that can cause significant disruption. By being aware of these issues, you can prepare your business and find ways to avoid or manage them effectively. Strengthening the supply chain will enable business continuation as well as provide peace of mind.
