Your supply chain is quite vulnerable. If only one piece in the chain breaks, it can have a huge impact on the entire organization. So, what steps can be taken to ensure continuity of operations and reduce the impact of unplanned downtime?
Although there is no single solution to truly eliminate supplier interruption, the objective is to avoid being caught off guard and minimizing the consequences. These methods will help you strengthen your logistical operations and be more prepared.
What Is Supply Chain Interruption and How Does It Happen?
Major disruptions in a supply chain’s production and distribution processes, such as fires, machine malfunctions, natural catastrophes, quality difficulties, and an unanticipated rise in capacity, are all examples of supply chain interruption. It can result in lower production, higher costs, more consumer unhappiness, and other issues.
For instance, the aviation and military industry relies on thousands of subcontractors and suppliers, and a logistic chain’s cost, schedule, and risk are all affected by an unlimited number of factors. The Airbus A350 program was in trouble in 2016 because to significant supply chain delays from a seat and cabin vendor.
Despite a planned plan for around 80 shipments by the end of the year, only 13 A350s were delivered to clients in the first 3 months. Airbus’ supply chain constraints were resolved by the second quarter of 2017, yet it is an instance of supply chain fragility and disruption costs. Let’s look at some strategies for dealing with supply chain interruption if it occurs.
Refer to your emergency preparedness plan.
What happens if a bridge along your path collapses? Or perhaps a river has overflowed? What transpires if a provider loses power in the midst of a snowstorm? There are various “what if” situations, and while many seem improbable to occur, it’s still a good idea to have a backup strategy in place. Planning other routes, accessible suppliers, and various shipment and inventory choices can assist alleviate the stress that comes with being in the thick of a crisis.
Have complete visibility
According to a survey conducted, 72 percent of suppliers who have experienced a supply chain failure lacked the total transparency required to devise a quick and easy remedy. Do not make the same error. Knowing every piece of your distribution chain, as well as the backup plans in place from your vendors will help you prepare ahead and respond appropriately when there are delays to your interstate freight.
Ensure Customer Happiness
Hopefully, your consumers will not notice any supplier chain disruptions. However, if they do, the open channel of contact we just mentioned must be extended to them. It’s critical to inform customers if your distribution system has been impacted and what you’re doing to remedy it during a recession. Transparency is essential, particularly if you want this customer to order again. However, it’s not ideal, be sure the client doesn’t get the impression that you’re withholding information. Consider steps like paying monetary compensation to assist cushion the shock.
