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The “new normal” engendered by COVID-19 requires some fresh perspective on how to go about the supply chains. Be it restarting production or ramping up manufacturing, you have to find solutions to cope with this uncertain situation. Here are 4 tips to strengthen your supply chain.
All over the globe, a majority of companies have experienced disruptions in their supply chains as a result of transportation restrictions related to COVID-19. The main question is can your pre-pandemic suppliers still provide what you need when you need it? Determine the answer. The answer is more likely to be no and you may not like the minimum order quantities. To add to it you have to expect delayed deliveries from businesses that were shut down and trying to restart.
How well versed are you about your vendors' capabilities? We often overlook a vendor’s additional capabilities/ services. Are you completely aware of all the services they provide? Sometimes it may not be limited to a single service alone. It could also provide other services like distributing, fabricating, and acoustical testing for custom insulation etc. Take the initiative and don’t wait for production downtime to investigate. This is the time to find hidden value in your supply chain.
Staying true to the law of supply and demand, the prices have risen since the COVID-19 pandemic. Firstly, your company needs to leverage on the pricing negotiations, in case your buyers didn’t lock in pricing. When you buy multiple products from a single supplier, you can get a better discount. By purchasing parts and materials from fewer vendors, you reduce the number of shipments that you need to order, receive, inventory, and invoice. Additionally, you can secure more favorable payment terms, as well.
As the COVID-19 restrictions ease and are eventually lifted, your company would like to meet pent-up demand. Remove special time to monitor vendor performance with care, no matter how hectic things get. Adding and maintaining new vendors, especially ones you don’t buy much from comes with an extra cost. But if your vendors can’t manage to deliver during the “new normal,” it’s time to restructure your existing supply chain
In such tough times, a stable supply chain will help your business save money, make quicker deliveries and reduce shipping costs. Utilize and apply these tips to start creating a more steady, secure, and stronger supply chain.