OEMs have been up all night worrying about part and material shortages. Supply chains throughout the world are progressively getting back on track in the aftermath of COVID-19, but shortages still exist. Learning how to handle supply chain shortages properly can help your business and allow you to make necessary adjustments, minimize stress, and enhance customer relationship, and customer satisfaction.
Assess Your Own Supply Chain
When it comes to making improvements and overcoming shortages, taking the time to closely examine your company's manufacturing and fulfillment processes is crucial. This analysis will enable you and your team to identify areas that require improvement, such as finding alternative suppliers or detecting where gaps and delays exist in your supply chain. Furthermore, creating and a supply chain KPIs scoreboard and follow a comprehensive guide to supply chain Metrics & KPIs can assist you in keeping track of your operations and measuring your success.
When it comes to shortages, supply chains are slowly improving; however, this does not guarantee that supplies are always available. According to Trucks, Parts, and Service (TPS) survey, 26 percent of suppliers said their raw material fulfillment has been most impacted by COVID-19. A responder of the survey also said “We cannot get all of the products we need from suppliers to produce our products.” In addition, It may be tough for your business to outsource elsewhere because of its comfort with its current suppliers, but now is the time to do it. Finding different sources for your resources may be beneficial since the products are more cost-effective or better suit your company.
Keep an Emergency Stock
On the surface, purchasing additional materials may appear to be an additional expense; but, since COVID-19, product and material availability has been unpredictable. Putting off purchasing supplies until you're out puts your business at risk of running out of stock. Having an emergency supply reduces production delays by allowing you to buy materials as soon as they become available or find alternate suppliers if necessary.
Keep Up with Inventory Management
Inventory management is a vital activity for any business. Keeping track of your inventory on a regular basis may ensure that your numbers are accurate, allowing your company to make necessary adjustments. Knowing your inventory can assist you in determining what supplies will need to be ordered as well as making decisions about the future of your supply chain.
We understand that supply chain shortages are stressful, feeling like overcoming the challenges isn’t a possibility. Learning new ways to handle these shortages will greatly benefit your company, giving you a piece of mind and allowing you to take back your supply chain. At NewStream, we provide our supply chain expertise for one, or all parts of your supply chain. From inventory planning and procurement to reduced lead times, NewStream is here to help you love the entirety of your supply chain.
Ready to handle your supply chain shortages? Chat with our experts and learn how today!