According to research, about 97% of industrial products companies stopped operations at the start of the Covid-19 pandemic. More than 47% of companies across the world also reported a decline in their workforce.
Due to these circumstances, the number of goods available in the market was reduced, causing significant challenges. Businesses now have to apply unique supply chain management strategies to source materials and deliver products to their customers.
Here, we discuss five tactics you can use to ensure your company thrives in this unprecedented time. We will also discuss various methods to help you reduce the cost of supply while delivering quality products to all your clients.
1. Diversify Your Supply Base
If you have been relying on only one source for your raw materials or products, it’s time to change your supply chain management strategy. Expanding your supply base will help you ensure that your shipping business continues to run even if one of your suppliers shuts down.
One method you can use to diversify the chain is having a list of backup suppliers. You should also break your contracts into smaller parts so that it will be easier to opt out when you find a more reliable company.
2. Increase Your Visibility to Suppliers
The types of supply chain management methods suitable for your business may differ depending on the product you offer. Still, it’s vital to come up with a detailed plan to increase your visibility as a supply chain manager.
One way you can enhance it is by joining platforms for connecting distributors and producers. You can also ask for references from other shippers, then present a proposal to the relevant companies.
Further, connect more with retailers and producers using commercial sourcing tools such as apps.
3. Use Strategic Business Planning
Running a supply business is becoming more challenging due to increased risks. Hence, it’s vital to develop new planning and operation strategies for continued growth. Start by analyzing your key goals and listing down the business goals you want to achieve.
Then, check what your competitors are doing to reach their target clients and determine the methods you can put in place to compete better. Additionally, set several short-term goals and outline how they will help you reach your long-term ones.
4. Reduce Costs
Reducing the cost of material sourcing and supplying to clients can improve efficiency and boost your business.
Some of the approaches you can apply are:
- Using pre-paid shipping
- Using regional carriers
- Avoiding repackaging
Another tactic to help you reduce costs is by negotiating with several carriers. This measure will allow you to get quality shipping services at a relatively lower fee.
5. Monitor Changes
Observing industry trends allows you to assess if the business methods you use are relevant. You can also determine if the supply chain management and logistics strategies you use will increase efficiency and allow your company to expand.
Some of the aspects you can observe to monitor changes are the inventory carry rate and warehousing costs. Also, check your accuracy on specific aspects like product demand and market outreach.
Supply Chain Management Strategies to Build Your Brand
Using the right supply chain management strategies can transform your business into a reputable brand. At 5WPR, we provide you with all the digital tools you need to manage time and operations.
We can help you connect better with suppliers and customers, and grow your business in the long run. Reach out to us today for a supply chain management and logistics app tailored for your needs.