7 Deadly Threats to Your Supply Chain
Your Supply Chain is at Risk .There can be any number of issues that could be working against your supply chain performing to the best of its ability. Ready to tackle trouble before it starts? Here are
7 Bottlenecks to your Supply Chain
When there is a high dependency on other firms, the risks can alter from going bankrupt to not being able to deliver the adequate quantity of product in time. A good rapport with the supplier lets you call the shots when chips are down. However in order to reduce this risk fundamentally work only with certified supplier and equip a comprehensive onboarding and monitoring process.
When your plans are washed out or toppled off by a tsunami wave or an earthquake. Supply chains often return to the force majeure clause. You never know when your supply chain can be affected by an act of God, or an act of man or an act of parliament altogether. For the sheer unpredictability factor of natural calamities invest much of your eggs in damage control mechanisms and protocols that initiate back plans. A handy communication system can make the difference by saving valuable time. Remember time is money!
Demand at risk
Number of factors can affect demand, the greater the unpredictability quotient more haplessness you feel over production. A comprehensive demand forecasting system can help you minimize the risk of producing a little too less or far too much.
From production problems to machine breakdowns, we know that it can happen to the best in the business. These internal risks can be fatal to your supply chain.
Well state of economy surely exchange rates, labour costs and interest rates. The economy of the home state has the potential to affect not only its own economy but also the economy with which the company is dealing. The recent years of recession taught the world that in a stagnant global demand how difficult it is to earn extra cents on the dollar.
Well many of the processes are not tailored by the company plant themselves in this regard there is a lacunae where company cannot assert control, high dependency on other firms and reliance over products and parts shipped from other countries are areas where things are never fully in control. As noted earlier a healthy communication network would ensure you do not become a loose control on such operation.
Resource at risk
When key personnel are missing from the processes, too many workers on French leave certainly puts your work at harm.
All in all an unresponsive supply chain
If any of the above factors prolongs its duration or overlap each other. The supply chain is bound to be riddled with discrepancies that get beyond repairing. Quick actions and adequate backup with key personnel equipped with faculties to handle the bloodbath out there surely keeps the balance of power tilted in your favour.
In today’s global interconnected world, even remote supply chain disruptions can have a huge impact on your business. Don’t wait for the next disaster to occur indulge proactively in managing risk. The most vulnerable spots in the supply chain should be addressed immediately.