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Ultimately supply chain disruptions can lead to delays in production, increased costs, and lost sales. However, there are steps that you can take to mitigate the impact of these challenges and ensure your business’s survival. We explore six of them below.
Diversify Your Vendors
Small businesses should have more than one supplier for their key inputs. This can help them avoid disruptions caused by a single supplier’s production problems, transportation issues, or other factors. Having multiple suppliers can also give you leverage in negotiations, as you can switch suppliers if one is not meeting their needs.Build Relationships with Suppliers
If you are on good terms with your vendors, they could put in the extra effort to meet your demands even when there’s a shortage of resources. Because they’ve come to know and trust you, they may be more willing to work with you to find solutions to problems. This could include expediting shipments or finding alternative sources of supply.Use Technology to Monitor Supply Chains
In the past, keeping tabs on goods coming into or going out of your physical location was a challenge. But thanks to contemporary technology, that doesn’t have to be the case for your business. These days, you can track shipments in real time with tracking software and monitor inventory levels with inventory management tools. These technologies enable you to detect potential disruptions early and take action to mitigate their impact.Sign up for the Connect Nigeria daily newsletter
Maintain Safety Stock
Small businesses should maintain the safety stock of their key inputs to ensure they can continue production if there is a disruption. Safety stock is inventory that is kept on hand to meet unexpected demand or cover supply gaps that may appear during supply chain disruptions. With safety stock in place, you’ll be better able to avoid a severe depletion of inventory and lost sales.Develop Contingency Plans
It’s often hard to tell when or how disruptions to supply channels will appear. But this doesn’t mean you can’t create plans to minimize or neutralize their impact. Taking proactive action will involve identifying alternative sources of supply, developing backup suppliers, or finding alternative transportation options. Review and update contingency plans regularly to ensure they remain effective.Communicate with Customers
It’s important that you communicate with your customers about any supply chain disruptions that may affect your business. Let them know about delays in delivery times, and explain why certain products are temporarily out of stock. If you’re transparent about supply chain disruptions, you’ll build trust with your customers and minimize the impact on sales.Register to attend the CN Business Mixer
Final Words
Supply chain disruptions are typically problematic for small businesses. However, by taking the steps we’ve talked about here, you can mitigate the impact of these disruptions and ensure your business’s survival. Featured Image Source:Did you find this article useful? Contact us: editor@connectnigeria.com
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Disruptions in the supply chain may ultimately result in production delays, higher expenses, and decreased sales. However, there are steps you can do to lessen the effects of these difficulties and guarantee the sustainability of your firm.
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