Identify and Assess
In order to minimize supply chain risk, you have to identify any risk factors. Generally, it’s best to approach this process by starting with your customers and then working backwards. This allows you to judge any impact on revenue while simultaneously identifying disruptions that may be evident throughout your supply chain. You should be able to follow this trail all the way back through your manufacturing cycle. Anything that may be negatively affecting your sourcing or hampering your logistics ought to become obvious.
Diversify and Control
Do your best to establish a relationship with both primary and secondary suppliers. You’ll be better able to determine which suppliers are your best alternative sources. When possible, choose vendors from a variety of geographic locations. This should aid you in maintaining a steady supply if there’s a disruption in one area. If it seems economically reasonable, bring necessary items and delivery closer to home. Taking ownership of your supply options and delivery needs could aid you in better adapting to risk factors. Ideally, you must focus on balancing cost and reliability.
Plan and Collaborate
Communicate with your suppliers, customers, and service providers. Everyone should be included in the collaborative process, so you can all establish risk plans that are as comprehensive and well-vetted as possible. This should be done for each link in your supply chain. Share and acquire information. Forecasting is helpful, but you still need to be agile and responsive to changes in supply or demand.
The dedicated and experienced team at CBX Software has worked tirelessly to compress the supply chain so that retailers and brands can expand their assortments and accelerate their product delivery. CBX can assist you with eliminating redundancies and onboarding new suppliers. With CBX Software, everyone responsible for bringing new products to market has updated information, daily support, and path management. The result is greater supply chain efficiency and reduced overhead. Using the tools provided by CBX, you can enhance your product management, improve your coordination, and perform ongoing market analysis. Contact CBX Software to find out what they can do for you and your business.