Being prepared for a supply chain disruption is essential for business success, especially in 2021. In fact, a survey reported 38.8% of U.S small businesses are experiencing supplier delays. There is no shortage of potential disruptions that could affect your organization, from a shortage of labor to surges in demand. That being said, there are a few ways to handle inevitable supply chain disruptions.
How To Respond To Supply Chain Disruptions
Although the risk of disruption is high, the good news is that there are several steps you can take to mitigate the issue. Firstly, one of the best things you can do is to create an emergency plan. This plan should include different ways of obtaining raw materials or products. For example, you could develop relationships with backup suppliers. If possible, you could also create relationships in different areas of the world. This could help if transportation delays or natural disasters are holding up a specific location.
Using a digital twin is another possible way to mitigate disruptions. A digital twin is a visual representation of your supply chain. Using one could help predict the changes in supply and demand that might affect your supply network in the future.
Failure to plan for supply chain disruption can be detrimental to your business, from losing sales to harming your business reputation. If you are interested in learning more tips to avoid disruptions, take a look at the accompanying infographic below. Keep in mind 79% of companies that have a higher-performing supply chain have greater than average revenue growth.
Infographic created by WSI, a fulfillment logistics company