Handling Supply chain disruptions

Welcome back Readers I’m Sivakami - A final year MBA student from Amrita School Of Business majoring in Marketing and operations. I have found my space to explore on the various verticals in the area of  Logistics and supply chain and of course not limited to theories and  empirical studies 😅. So come lets discover on our never ending territory 😇 

    Everytime, I reach out to the supermarket nearby to get some goodies, I have always seen the shelves neatly stacked. Infact I always got what I needed with plenty of options and brands. I have wondered how retail stores maintain their stock despite the over hiking footfalls. But once the pandemic hit us hard I was able to figure out the answer to this. The supply chain disruptions actually draw our attention towards supply chain dependencies that we are otherwise not aware of.

    Sometimes these supply chain disruptions are small and localized which may affect only a few businesses. Other times it is globally felt.For instance when the asian markets are hit, it is felt by global economies since Asia is the main source for a diverse range of suppliers. One of the recently seen supply chain disruptions is COVID -19 Pandemic. We are witnessing the effect of global pandemic which has a massive supply chain impact because the number of people, regions, and global companies affected can upend normal operations at every stage of the production line.

    So in these circumstances, we probably won’t get much advance notice about disruptions to the supply chain, so it’s a good idea to make sure we plan ahead for any eventuality. So here we will be discussing the strategies for managing supply chain disruptions.

• Create a supply chain emergency plan.
• Build up inventory
• Conduct a supply chain vulnerability audit
• Identify backup suppliers
• Diversify supply base
• Partner with a logistics expert
• Adopt risk evaluation tools

  

  Firstly it is important for us to create a supply chain emergency plan or a backup plan, especially when it comes to supplies. Secondly, building up inventory. Stockpiles of essential supplies will help us in withstanding disruption. In other words, this might mean having a store of finished goods, components or even raw materials to maintain business if supply chains are temporarily cut off. Thirdly conducting a supply chain vulnerability audit will help us in analyzing the risk and see where the weakest links in the supply chains are and also develop alternatives for such areas. It can also be helpful to assess potential environmental, social, and political conditions that may impact the supply routes. 

    Identifying suppliers in other geographic locations and building a relationship with them can give us an edge over others. We can also diversify our supply base by setting up supply chains in different places. This will make us ensure that we'll always be able to get at least some goods amidst any disruption. Sometimes the risk evaluation tools help us in sensing the potential threats in the market. AI-enabled mapping and environmental analysis solutions, aggregate apps that provide geopolitical overviews, and systems that can evaluate cyber threats. Even social media can be used as a predictive tool to identify potential shortages and disruptions

    In times of trouble, having a good long-term plan in place or a strong crisis management strategy is essential.Supply disruptions are inevitable, but by planning your response carefully, evaluating potential supply chain risks, and diversifying your suppliers, you can help prepare for even the most unprecedented of circumstances.

Happy reading from Sivakami :)