One of the major concerns of the logistics business is supply chain disruption. People have become accustomed to getting products at the right time in developed countries. But if there is any disruption or delay occurs in the delivery of products, it will cause a great disadvantage for them.
Supply chain businesses need to be aware of the various types of disruptions that can affect their delivery business, which include:
- Pandemics
- Natural disasters
- Transportation failures and disasters
- Product defects
- Market fluctuations
- Technical errors
When faced with some of the major supply chain disruptions back-to-back or immediately, businesses need to be prepared with contingency plans. You can tackle the disruptions with some plans as mentioned here.
- Emergency plans
- Build an inventory
- Vulnerability audit
- Backup suppliers
- Partnership with logistics expert
- Risk evaluations
Emergency Plans
As we’ve learned, a disruption in the supply chain can happen under many circumstances. It is not possible to anticipate all of them in time. It is best to prepare emergency plans for each issue that your business may face in the supply procedures. In case of an emergency, moving goods is vital. Your plans should include how you can carry out that action without disrupting the business too much.
Build an Inventory
Products that are sent out can come to harm due to various reasons. It can range from natural disasters to manmade or just coincidental accidents. It is a good practice to stock up on the necessary materials in extra for such situations. It means stocking up on raw materials, finished goods, components, spare parts, or anything else that you may need in a hurry. In case of a supply chain disruption, this inventory can help your business survive till the new materials arrive.
Vulnerability Audit
You need to be aware of where your business will be vulnerable if there is a supply chain disruption. Conducting an audit of your own processes will enable you to understand the loopholes in your business in such cases. Auditing can help you find alternatives for multiple situations and be ready for them. A vulnerability audit can also help your business assess any potential social, political, or environmental issues on the routes too.
Backup Suppliers
Every business needs to have a backup plan for every process – even the supply chain network. In case of disruption, the business can activate the backup supplier that can deliver the required materials on time. Building good relationships with multiple suppliers in the same route can be advantageous sometimes.