Supply Chain Disruptions Management

Supply Chain Disruptions management

Identify potential risk factors
Risk identification is the process of determining potential risks to your business. This can include anything from a natural disaster that could damage your property to a disgruntled employee who could sabotage your systems. As a business owner, you're constantly faced with risks. Some are bigger than others, but they all have the potential to impact your bottom line. That's why it's important to have a system in place for identifying risk.
When you know what the risks are, you can weigh the pros and cons of any decision and make an informed choice that’s best for your business. Risk identification is a critical part of a robust risk management system and a key tool for running a successful company.
Develop a Supply chain contingency plan

Supply chain contingency planning is a process where organizations analyze potential disruptions that can hurt their business and devise a plan to minimize such occurrences. One of the most significant aspects to consider is supply chain sustainability.
A business contingency plan is a backup strategy for your team or organization. It lays out how you'll respond if unforeseen events knock your plans off track—like how you'll pivot if you lose a key client, or what you'll do if your software service goes down for more than three hours.

Monitor and analyze your supply chain data.

In a supply chain, critical aspects monitored include inventory levels, lead times, supplier performance metrics (e.g., quality), transportation data (e.g., shipping routes), demand forecast accuracy rates as well as external factors such as weather patterns or geopolitical events that may impact the flow of goods.

Here are the key performance indicators you should monitor to optimize your supply chain management.
Inventory Turnover, Inventory Accuracy, Order Fill Rate, Perfect Order Rate, On-Time Shipping, Backorder, Order Cycle Time, Inventory Days on Hand.

How can automation help supply chain management?

Automation helps speed up the delivery process so these other retailers can compete. Automation can also help improve supply chain agility. When a company sets up automated alerts to monitor demand signals from customers, it gains a chance to help teams adapt faster.

Strengthen supplier relationships.

Be proactive, communicate regularly and effectively, Establish roles and responsibilities and remember them, Understand the contractual obligations, Behave ethically and honestly at all times, Regularly review the deliverables and performance, Identify and monitor risks, Seek professional advice, Be reasonable and fair, Establish the basis of the working relationship.