Currently, supply chains lack global resilience and are breaking down in the face of multi-country disruptions. Most of the operations in the supply chain have become expensive for small and medium businesses, threatening to shut down their operations.
Consequently, small and medium businesses owners have risen to the occasion by making rapid decisions and taking immediate actions where necessary to sustain their businesses. Here are different ways small and medium businesses deal with the current supply chain disruptions.
Use of efficient tools
Making use of the latest automated tools has helped small and medium businesses use their resources effectively and in planning. Most of them have adopted supply chain management software to monitor inventory levels. The software is also used to manage to ship and keep the organizations updated on the items that are moving fastest.
Six Sigma tools are also being incorporated by small and medium business organizations in inventory management. Peter Peterka of 6Sigma.us says these tools analyze and improve the existing business processes related to supply chain management and equipping your employees with Six Sigma certifications is a great add-on.
Tracking their stock
The current supply chain disruptions have reshaped the perceptions of many business owners concerning supply chain operations. Most of them have faced the reality that changes can happen anytime in the supply chain operations leading to losses.
With the frequent disruptions in the supply chain operations, small and medium businesses are actively tracking their inventory. This helps them know what exactly they have in their stores or warehouses and what needs to be replenished. As a result, most of them can prevent running out of popular items and finding it hard to restock them.
Increasing the stock whenever possible
For the medium and small businesses, it’s not always possible for them to increase their stock like the big companies with significant capital and assets. Most of them operate on limited resources that they can afford according to their budget plans. With disruptions in the supply chain operations, the owners have come up with disparate ways to increase their stock whenever possible.
Whenever a popular product becomes available in plenty, the owners of these businesses buy them as much as possible and keep them for later use. They are also considering discounted items from different manufacturers to increase their stocks. Others are seeking financing to invest in more stocks. Outsourced storage spaces are also becoming ideal considering for most small and medium businesses to increase their stock.
Looking for alternative suppliers
With the current supply chain disruptions, it’s very unpredictable when the supply of raw materials will face challenges. More possibly when the disruptions are happening at short notice. As a result, owners of small and medium businesses have become more proactive and anticipate these minute challenges. They are actively researching alternative suppliers, especially in different parts.
They can maintain their stock levels through alternative suppliers even when their leading supplier is unavailable to meet their needs. They have also become more creative by offering alternative options to their customers to ensure that they maintain their operations even when the supply chain operations are disrupted.
Staying informed
Even though most supply chain disruptions occur simultaneously, most of them are predictable. Research shows that the disruption of the chains tends to be different depending on business location and the type of industry. Some of the major factors affecting supply chain operations include politics and weather conditions.
Staying with the current trends is helping many small and medium businesses to deal with supply chain disruptions. They can get news on time about the related shortages and respond effectively. Even though they are not 100% effective in preventing these challenges, the few that are solved effectively keep the businesses going.