Skip to content
Insights

Coronavirus: Effective supply chain management during a crisis

Supply chain management is critical for many businesses. When a crisis hits, you need to proactively reinforce your supply chain so that you can continue meeting customer demands.

It’s important to take a structured approach to logistics planning and organization so that your business doesn’t find itself in a tough situation. Effective planning can prepare you for issues such as:

  • A supplier being out of stock;
  • Delayed delivery times;
  • A supplier being quarantined;
  • Shipping and distribution problems.

Meanwhile, internal issues could affect your ability to pay suppliers on time or meet your contractual obligations with them.

All of these factors could impact your operations.

How to secure your supply chain

Start by assessing the situation quickly and then moving forward with an action plan aimed at preventing problems and implementing solutions.

Monitor inventory levels

  • Keep an eye on variations in sales so that you can effectively estimate needs;
  • Establish critical inventory thresholds and build stockpiles as needed;
  • Create quarantine areas for certain goods;
  • Use the special inventory and restocking features in your management systems.

Strengthen relationships with customers

  • Find alternative shipping methods;
  • Adjust customer delivery schedules based on your suppliers’ ability to replenish stocks—and don’t forget to add a buffer;
  • Contact your clients and be transparent about the situation.

Cement relationships with suppliers

  • Control cash flows so that you can pay for shipments upon delivery;
  • Determine who your critical suppliers are and check in to see how the situation is affecting them;
  • Look for replacement suppliers as needed and contact them as quickly as possible;
  • Negotiate payment terms with your suppliers.

All businesses will be facing a certain degree of volatility in the coming weeks, which will force them to be flexible in their operating procedures and dealings with suppliers and partners. There are several factors that can influence supply chains, and these factors can change quickly.

Now is the time to look ahead and take action before issues arise. But rest assured that you don’t have to do this alone. Our team is available to help you get through this challenging period. Put our expertise to work for you. Together, we can weather the storm.

The link of this page was copied to your clipboard