From tornados to thefts to equipment failure, there are a number of events that can threaten your supply chain management. Yet, while your company's supply chain is always going to carry some degree of risk, that doesn't mean you can't take steps to reduce it. Here are five ways to minimize your company's supply chain management risk.
1. Choose Quality Over Cost
When choosing the companies that will be a part of your supply chain, consider more than just the cost of doing business with them. Do they offer a quality product, excellent customer service and some type of guarantee? Choose companies you can count on.
2. Have Backup Plans in Place
Even with the best of companies, unavoidable circumstances happen sometimes. Have backup plans in place to reduce your supply chain management risk. What other providers and carriers can supply your goods? Do a test-run so everyone knows what to do in an emergency situation.
3. Keep Accurate Inventory Information
While you don't want to be obsessive, keeping tight tabs on your supply chain management inventory information can prevent or lead to a quick solution for a number of problems. If there is a theft or an error somewhere, you'll know right away. Your ability to take quick action can easily save you hundreds or even thousands of dollars down the road.
4. Review Past Periods
While not all supply chain management risks are predicable, some are. Review data from your past periods, looking for any problems or inefficiencies that happen again and again. Take steps to remove these supply chain management risks from the equation.
5. Stay Up-to-Date on Current Forecasts and Trends
You can also help predict future supply chain management risks by staying up-to-date on current forecasts and trends. Whether a new item is becoming incredibly popular or a hurricane is headed for one of your manufacturers across the world, the sooner you know about it, the more prepared you can be.
The success of your company hinges on how you manage your supply chain risks. Get help with this all important task by contacting our experienced team. Call (816) 348-3100 to learn more!