With the world-wide hit the logistics companies had taken and are still reeling from, it has become abundantly obvious that supply chains need much greater consideration if things are to continue functioning the right way. Be it small businesses that deal with only their own supply chain, or logistics companies that have a lot more to worry about, everyone is trying to learn. So, we have prepared a guide on how to future-proof your supply chain!
Ensure you always have access to suppliers
Now, the most important aspect of trying to future-proof your supply chain is, of course, having access to supplies. This is particularly important since even if you learn about new tech and how to use it, while it might improve your other supply chain aspects, it will do nothing for your supply acquisition. So, this can only be solved in one way: looking for suppliers and making contracts the old fashioned way. The best way to go about ensuring your supplies will always be there when you need them is to contract multiple suppliers. Lots of companies have made the mistake of using a single supplier in the past, and paid dearly for it. A single supplier means that, if there is anything that goes wrong on their end at all, you would be rendered completely incapable of getting products. Which would of course render your entire supply chain obsolete.
Try to look for local support
While having multiple suppliers is good, there is one other precaution you can take to future-proof your supply chain. Namely, you can try to focus on finding local suppliers. Now, admittedly, local suppliers typically do not have an output that can rival that of major suppliers. However, most often, they do not need to! As we’ve discussed already, you already want to focus on multiple suppliers anyway. So, the lower output shouldn’t bother you as much. In addition, there is another advantage of the local suppliers. If you simply try to contract suppliers near every major warehouse you have, you might be able to simplify transport and shorten the transportation time in one fell swoop! This would minimize the chance of accidents, avoid the pitfalls or long supply routes, and make things cheaper for you.
Try to keep an eye on the market
It is impossible to predict all the trends of the global or even local markets. However, with enough data collection and analysis, you would be able to reliably predict the demand in short term. This is something you should definitely pursue, and not just because of the profits. As the past few years have well illustrated, the most frustrating thing in the industry is lacking goods when demand is high. If you can secure at least a part of these supplies ahead of time, then you would already be ahead of the competition. There are some essential CRM metrics you want to keep an eye on and similar things you should monitor to achieve this effect. Such data will provide you with the best possible foundation to base your predictions on. After all, the demand for goods tends to slowly tick up, so you should have at least some forewarning.
Always have access to alternate transport methods
The matters of transportation cannot be skipped if you are trying to future-proof your supply chain. We have already seen what happens where goods are available only to have no means of moving them. Tons of food have rotted away in warehouses with ports closed or ships that are already filled to bursting. So, if Corona has taught us one thing, it is to always have a backup plan! While it is all fine and good to prioritize the cheapest solutions, such as maritime shipping, you need to have faster alternatives you can fall back on. Even if you need to spend some money on having a standing contract with an airline or a shipping company, it is better than not having them. Of course, things are looking up with new and safer approaches to autonomous vehicles which make it likely that we will soon see them put to use!
Make full use of new tech to future-proof your supply chain
New tech is always the lifeblood of every industry, so it should not be odd that it is required to properly future-proof your supply chain. We have already touched on some of the advantages of software with MoversTech CRM. However, it is necessary to take this a step further. Through the use of the relevant programs, it is possible to optimize and automate your supply chain. Prediction and driving assistance software can cut down truck travel time, allowing your fleet to be much more efficient. And automation software can cut down time for a lot of filing and book keeping procedures, allowing your supply chain to function faster and more precisely. It is also invaluable to have software that manages your warehouse space, since it prevents human errors like double booking, misplaced items and similar issues.
Be careful with your risk management
The final aspect of your efforts to future-proof your supply chain should be focused on risk management. For example, lots of businesses made use of practically last minute acquisitions. This means that they would only contact their suppliers once they’ve gotten an order. Which would strain the response time they have available to actually deliver the goods. This would mean that any problems along the way would cause delays and likely incur fees. It is better to be more prudent. Have at least some goods on hand if you know someone is likely to order them. This would give you more wiggle room for errors. Of course, the pandemic has made it amply obvious how real-time actions have become an essential part of managing your supply chain. So, make sure to have flexible and quick thinking employees in the key positions.
Advice to consider
Now that you know a bit more about how to future-proof your supply chain, you should be ready to work towards that! However, keep in mind that logistics are constantly changing. Even now, the potential of drones is growing, and their many applications are being tested. So, never stop trying to improve your supply chain!
