Do you want to run a successful business? If so, you need to make sure you pay attention to your supply chain. Supply chain management has been in the news a lot recently because there are a lot of companies that are having a difficult time stocking their shelves. As a result, prices are getting more expensive, profit margins are getting squeezed, and a lot of people are frustrated because they can’t access the product and services they require.
Therefore, you need to think about how you can improve your supply chain resilience. Take a look at a few of the most important tips you should follow if you want to optimize your supply chain.
1. Think Carefully About Who You Choose as Your Suppliers
First, you need to think carefully about who you choose as your suppliers. You probably have a lot of eclectic requirements that need to be met, and you need to work with a supplier who has experience dealing with your type of inventory. For example, if you are in the food and beverage industry, you need to work with a supplier who understands how to protect perishable materials. Or, if you work in the healthcare field, you must work with a supplier to understand how to keep your inventory sterile. Always ask your suppliers about their prior experience, and make sure you work with someone who has experience in your area.
2. Have Multiple Suppliers Available for Everything
One of the biggest challenges of the current environment is that you never know when your suppliers might need to close down. The situation can change quickly, and some jurisdictions will go into lockdown in the blink of an eye. If your suppliers have to cease operations, you will have a difficult time meeting the demands of your customers and clients. You can avert this situation by having multiple suppliers available for everything. That way, if one of your suppliers has to close down, the other suppliers can pick up the slack. This will make it easier for you to protect your supply chain.
3. Place Orders Well in Advance
If you want to increase your chances of getting your inventory on time, you need to place your orders well in advance. You must give your suppliers plenty of time to fulfill their orders because you never know if they are going to run into obstacles. If you ask your suppliers to handle a rush order, you are setting yourself up for disappointment. Make sure you give your suppliers plenty of notice and give them a deadline that is well in advance of your deadline. That way, you get yourself a bit of leeway if something happens and your orders are late.
4. Know How Your Suppliers Want To Be Paid
If you want your orders to be delivered on time, you need to keep your suppliers happy. The best way to do so is to pay them immediately and pay them in a manner that is convenient for them. If your suppliers know that you will always pay them on time, they will be more likely to go the extra mile to make sure you get your items on time.
There are some suppliers who are perfectly fine being paid with a business credit card. There are other suppliers who would rather be paid using a direct bank transfer. Make sure you figure out how your suppliers want to be paid, and do everything you can to meet their expectations.
5. Communication Is Key in the Current Environment
Finally, the most important thing you need to remember is that you must keep in touch with your suppliers. Communication is everything, particularly in the current environment. With so many communication options at your disposal, you have no excuse for not talking to your suppliers.
If something happens, you need to contact your supplier as quickly as possible to let them know about the change. Then, if your supplier runs into an obstacle, he or she should return the favor and keep you in the loop as well. If you keep an open line of communication with your suppliers, you will reduce your chances of being disappointed.
Take Steps To Protect Your Supply Chain
In the end, these are just a few of the most important tips you need to keep in mind if you are looking for a way to improve your supply chain. There are a lot of supply chain difficulties that companies are facing right now, but you do not need to face them by yourself.
If you put these tips to use, you should be able to put your business in the best position possible to be successful. Remember that you can always reach out to an expert if you want help improving your supply chain.
