We live in a time where supply chain managers face many challenges. In the past, various events and natural disasters have disrupted global supply chains critically resulting in far-reaching effects across diverse markets and geographies.
In spite of this, logistics landscape likewise holds huge potential for supply chain technology developments that help organizations better manage catastrophic events while managing unforeseen supply chain disruptions. Millennium Logistics Management sees these disruptions as an opportunity for growth and a challenge that can be overcome with these 5 steps:
1. External Factors and Risks:
External factors and risks could cause unexpected supply chain disruptions when not properly prepared. Establish a detailed list of external factors and risks that could be possible causes for these disruptions. In determining weak spots in your supply chain comes the opportunity to create a strategic supply chain design that offers maximum protection against disruptions.
2. Analyze The Situation:
Analyzing the situation allows for a complete assessment of any situation you may come across and is an opportunity to review alternate ways of keeping the supply chain performing. It is clear that opting for different forms of transportation could be more expensive but, losing customers over product deficit costs even more therefore it is important to become educated on the exact costs associated with alternative transportation in order to make informed decisions.
3. Define Alternatives:
Defining alternative transportation plans for both supplier parts and finished products is imperative. This is also a great opportunity to research new carriers or even partner up with a third-party logistics company like Millennium Logistics Management.
4. Evaluate Each Supplier:
When evaluating each supplier consider whether there are alternative suppliers for raw materials, how much will it affect cost, how long will it take to change suppliers and if there are alternative raw materials. Careful consideration of these things will go a long way.
5. Inventory Visibility:
It is important to establish inventory visibility because where and how many items are located in your supply chain and how easily they can be transported and re-positioned with have a huge impact on your supply chain. We recommend a well managed transportation management system (TMS) which is valuable and well worth the investment.
We can’t guarantee that you will never encounter supply chain disruptions but being prepared and establishing a flexible supply chain process can help you avoid risks and overcome many supply chain disruptions. It definitely never hurts to be prepared! For more information about overcoming shipping disruptions or if you would like to partner up with the best logistics company, contact Millennium Logistics Management today!
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