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  Once in a while, events unforeseen will disrupt the production, distribution or sale of your business’s product. Such occurrences—geopolitical conflicts, natural disasters, or even pandemics –may cause you to struggle with functioning normally and meeting your obligations to customers and creditors.
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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.
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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.
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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:
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This article was first published on 20th April 2023


Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.

Comments (1)

One thought on “6 Things Your Business Can Do to Overcome Supply Chain Disruptions”

  • 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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