Supply chains are complex systems that link producers, manufacturers, distributors, retailers, customers, and service providers throughout an organization. Supply Chain Management (SCM) focuses on identifying risks early within a company’s supply chains and managing these risks throughout the process.
If there’s one thing stakeholders in the supply chain have learned from the COVID-19 pandemic, it’s that nothing is set in stone. Many stakeholders in the supply chain such as retailers faced extreme difficulty in finding good cosmetic supply wholesalers. That’s why it is important for them to be aware of reliable cosmetic supplier directories like Beauty Sourcing. But that’s just one of the many problems in a post=pandemic world.
All players need to be ready for another unforeseen disaster that may cause a paradigm shift in the way we live our lives. Today, we’re going to talk about how stakeholders can effectively manage supply chains in a post-COVID-19 world.
Top tips for effective supply chain management
1. Do Not Reopen Before Being Ready
Inventory levels must be optimized before reopening stores and businesses. Customers may come back sooner than expected, so it is vital to ensure that every product line is ready to go before attempting to reopen. Additionally, inventory needs to meet customer demand. During the first week after reopening, customers will likely purchase only essential products. They may buy fewer nonessential items later on, but the initial rush will be very high.
It is critical for all employees to understand the importance of staying home when sick or experiencing symptoms. Employees should also practice safe social distancing measures.
2. Prepare for Shortages Ahead of Time
For both small and large firms, COVID-19 has created shortfalls in supplies that were previously anticipated. Now is the time to identify gaps in your supply chain and anticipate shortages. This is especially important for creating an effective supply chain.
Small companies may struggle with this task, however. Meanwhile, larger companies have more resources to draw upon. Identifying a shortfall ahead of time allows you to plan ahead.
You should also monitor your suppliers closely. If you notice any issues with the availability or quality of supplies, contact your supplier immediately. This is especially important for companies like Beauty Sourcing that have huge cosmetic supplier directories. You will always want to be prepared for shortages.
3. Consider Outsourcing Where Possible
Outsourcing will be a big part of your recovery strategy. For some industries, such as grocery stores, distribution centres may become overwhelmed and unable to provide sufficient quantities of goods. As a result, you may need to consider outsourcing certain functions of your supply chains. There are several reasons to outsource:
- Increase productivity
- Reduce costs
4. Leverage Technology Solutions
Technology solutions can play a huge role in reducing risk across an entire supply chain. Using technology like barcodes, RFID tags, and mobile devices can track shipments throughout the supply chain. These technologies can be used to help minimize waste and fraud along your supply chain.
Additionally, blockchain technology can be used to securely store records and share information between different parties in order to streamline processes and reduce errors.
5. Monitor Customer Demand
Customer demand is one of your most important indicators that your supply chains are running smoothly. Make sure that you are monitoring daily orders to make adjustments where necessary. You may want to consider increasing production if there is not enough demand and decreasing production if there is too much demand. Also, keep an eye on your delivery times. Deliveries should ideally be made within 2 days of receiving an order.
6. Reopen Your Operations Carefully
Reopening your operations safely requires careful planning. It’s okay to take things slowly at first. You don’t want to put yourself or your staff at risk unnecessarily by opening up too quickly. Instead, proceed gradually, making sure that any new procedures are well-tested prior to applying them. Take care to avoid introducing new risks and potential problems into your system.
Do you know better how to manage supply chains now?
And there you have it!
These are our 6 best tips on managing supply chains effectively. We live in uncertain times. And, like it or not, change is the only constant. We hope that this article has provided you with some useful insights into managing your supply chains.