Preparing for a Supply Chain Crisis

Preparing for a Supply Chain Crisis 2019-05-22T12:22:23+00:00

Project Description

If a hurricane hit your region, would you be able to keep on operating? What would happen if a software glitch froze your computer system? How would you cope if an accident impacted the output of one of your suppliers? And what would you do if you couldn’t find enough skilled labor?

For most of us, these are nightmare scenarios that we hope to avoid at all costs. Unfortunately, avoidance isn’t always possible. The good thing is that you can plan ahead so that you know what to do in the event of a crisis that affects your supply chain. Here are some of the most common types of crises — and some suggestions on how to prepare for them.

Natural Disasters

Hurricanes, tornadoes, earthquakes, wildfires and mudslides are all increasing in frequency due to climate change. For many organizations, it’s no longer a question of if a disaster will happen, but when. The best way to prepare for them is to set up alternative logistics and locations so that you can simply move your operations to a safe zone when needed.

ERP Failure

If your ERP solution isn’t implemented properly, it can lead to a wide variety of problems ranging from massive data loss to a full system shutdown. While it’s difficult to estimate the average ERP failure rate, it’s undeniable that many companies run into problems due to inferior technology and/or incorrect implementation. To prevent such an issue from coming up, make sure to select a powerful ERP system and have it customized and implemented by a reputable ERP service provider with proven experience.

Workplace Accidents

While you probably have a contingency plan in place for workplace accidents on your own premises, you should understand that accidents can also happen at your suppliers’ places of business. If an accident is severe enough to interrupt production, it will impact your supply chain and your ability to deliver products to your customers. You can prepare for this kind of incident by researching other suppliers and making a list of the best ones to fall back on in the event of your primary supplier being temporarily out of the running.

Labor Shortages

The average unemployment rate is only four percent. What’s more: Many employers are finding it challenging to attract and retain talent with the right mix of skills and experience due to recent advancements in technology — as well as the fact that many Baby Boomers are retiring while relatively few young people are entering the industry.

Unlike the other potential crises, a labor shortage can be a long-term problem that hinders your ability to compete and expand. Fortunately, you can prepare for one by training talent in-house so that you know they have the right skills. In addition, you can invest in automation to cut down on the number of employees you need to hire.

In today’s competitive marketplace, you can’t afford to temporarily shut down operations due to a supply chain crisis. By anticipating the types of things that could go wrong and preparing a practical response plan for each, you can make sure you’ll have a framework and the resources you need in place in the event that something really does happen. And that preparation, in turn, will allow you to recover and continue operating with the minimum amount of downtime.

See how Clients First Business Solutions can prevent ERP failures at your distribution company.

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