1. Asses your supply chain to identify weak links.
Review your supply chain’s internal and external factors and take steps to shore up areas that could present a future risk. This could include delays, disruptions, quality control failures or vendor relationship challenges. It can also involve operational challenges within your system.
2. Go digital.
Look for ways to improve efficiency and reduce costs by exploring digitization and automation. Digitizing your supply chain management functions will allow you to capture real-time data and help make decisions quickly to keep your business running.
3. Explore alternative supply sources.
The adage ‘don’t put all your eggs in one basket’ holds true if there is a major disruption to your supply chain due to factors that are outside your control—like natural disasters, trade disputes or a pandemic. There are a few options to consider:
- Reduce the risk of a single point of failure for critical supplies by finding multiple suppliers.
- Reduce the distance that supplies need to travel by finding suppliers in your area. Transportation and other logistical challenges are less likely to affect your business if you factor proximity of supplies into your supply chain planning. This can be helpful if there are unexpected delays or disruptions along your shipping routes. This can also produce cost savings.
- Identify suppliers who provide transparency into their own operations. Work with suppliers who also take steps to reduce their risk of lack of access to essential supplies when there are delays and disruptions.
You can take back control by evaluating how you access critical supplies, assessing if your current systems can support real-time decision making and proactively managing supply chain challenges.
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The information contained herein is intended for general informational purposes only and does not constitute as advice or opinions to be relied upon in relation to any particular circumstance. For more information about this topic, please contact your Grant Thornton advisor. If you do not have an advisor, please contact us. We are happy to help.