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From “just in time” to “just in case” How you can proactively manage supply chain challenges short run. Although it may feel like you have little or no control over the situation, I would suggest proactive measures that you can start taking immediately to reduce supply shortage issues.
1. Treat your supplier well.
COLLEEN O’TOOLE CHIEF EXECUTIVE OFFICER LIGHTHOUSE TRANSPORT LTD
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trip to the local grocery store makes the supply chain issues facing the country all too apparent. The empty shelves and freezers that we see are becoming the dreaded “new normal.” This means that, as consumers, we are forced to make choices, such as paying more for our favorite brands when they are available, buying less, or switching to a different product altogether. As a small and medium-sized business owner, you must look at the above scenario as a cautionary tale and think about what you can do to ensure your customers do not have this experience. The last thing any business owner wants is to have their customers buy less or — worse yet — switch to a different option. The fact is that supply chains are no longer running as smoothly as pre-Covid times, and they will not correct in the
This means making your supplier a priority in terms of payment. It is easy to get trapped by paying late to improve cash flow, but in the end, if the supplier has to make a choice between two customers, they will most likely pick the one who respects payment terms. As a secondary part of this, try to create a strong personal relationship with them. When you treat them with respect even when things are going wrong, you may get a better end result.
2. Try and source multiple suppliers. It would be good to know you have options in case your primary supplier, despite your best efforts, is unable to meet your requirements. I would suggest, even with your second or third supplier choice, that the same principles in suggestion one still apply, especially for supplies that are essential to your offerings. These days, the ability to be agile and pivot is necessary for survival.
3. Try buying in bulk. This is good for a couple of reasons. You should be better able to negotiate a lower price, and you will have ample product on-hand to minimize supply disruption. Although “just in time” inventory management has been popular for decades, I would suggest we are in a time of “just in case.” Having extra product available helps to avoid the pitfalls of supply chain issues.
4. Find extra space for storage. In order to accommodate your extra inventory, look at how you can revamp your current location. If this isn’t feasible, 24
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you can always look for a third-party logistics provider. Outsourcing warehousing needs is not a new concept, but it might be the perfect solution for businesses in the current climate. These warehouses can provide ultimate flexibility for businesses in need of extra space.
5. Keep your clients informed. When things do not go as planned, be honest with your clients. This may sound intuitive, but let’s face it: no one wants to be the bearer of bad news, and our natural inclination is to postpone difficult conversations. When you build trust with your clients, they will appreciate a candid conversation about expected timelines. It is never a good idea to over-promise and under-deliver. Your business may not be a large grocery store, but right now, as business owners, we are all weathering the same supply chain storm — albeit in different sized boats. Supply chain issues are complex and the solution to challenges in manufacturing, human resources, and COVID-19 will not be solved overnight. But remember: not all is lost. By taking a few proactive measures mentioned above, you will be setting your business up for a successful year. Your challenges could be in one or multiple areas of the supply chain, but there is always a solution to reduce negative impact on your business. Whether it is about local or international transportation or additional space for storage/ warehousing, you can reach out to professional companies who can deliver to you a turnkey solution. Do not struggle, and do not put your business under unnecessary stress. Discover more at: lighthousetransport.com
