The pandemic has already wreaked havoc on global supply chains, and the situation is only worsening. A fresh wave of labor strikes in Europe is causing disruptions, while extreme heat is causing power shortages in China and resulting in factory shutdowns. And then, there are still containers trapped at ports and railways, preventing shipments from reaching their destinations in time.

It's a perfect storm of problems putting strain on an already fragile global system and causing numerous challenges for businesses and consumers alike. In particular, it's leading to increases in the cost of goods and delays in delivery times. As the situation continues to evolve, it is unclear how long the disruptions will continue.

So what can be done to ease the strain on supply chains? While there's no easy answer, one thing CFOs can do to navigate these disruptions is to take a long look at how their supply chain operates and make smart changes to meet the challenges.

In this article, we will look at ways to streamline your supply chain so you can keep your business running smoothly and weather the storm.

Understanding the Bigger Picture

In today's global economy, the supply chain is spread out and disjointed, making it difficult for CFOs to get a clear picture of what is happening and where there might be problems. One way to better understand your supply chain production cycle is to take a company-wide view rather than focusing on one link. By taking this broader perspective, CFOs can identify areas of potential improvement and possible risks and begin to develop strategies for addressing them.

To see the bigger picture of your supply chain, however, communication between all links in the chain is essential. Information needs to flow freely from one end of the supply chain to the other; that way, everyone is on the same page and has access to all information. Everyone involved in the supply chain production cycle — from procurement to production to sales — must work together and keep each other in the loop on all issues, big or small.

If everybody doesn't work hand-in-hand, the consequences will negatively impact everything from inventory to deliveries. Streamlining communication will allow you to take note of hidden costs in your supply chain that affect your income statement, such as transit times or logistical delays. Without the ability to connect these dots, you may be scratching your head, wondering why your revenues are so unpredictable.

Assembling the Right Team

Supply chains are more than getting things from point A to point B. They are a complex web, requiring multiple individuals' creativity and brain power to achieve a singular goal. Hiring — or partnering with — experienced professionals with connections and creative thinking is essential to devising supply chain solutions that will work for your company.

Look for candidates who have a deep understanding of the supply chain process and can identify potential problems and find innovative solutions. Create positions that will benefit the process.

Take a Category Manager, for instance. This position understands your production cycle, formulates potential alternative action plans, foresees industry changes and engages with suppliers to negotiate prices. Another position to consider is a Supply Chain Coordinator who can evaluate the bigger picture while also remaining laser-focused on particular areas to ensure they function well. Or, if your company isn’t looking to increase its overhead, another option may be to partner with a cutting-edge logistics company who can help with this process.

With the right team in place, you'll be able to navigate the ever-changing supply chain landscape and keep your business flowing smoothly.

Making the Most of Analytics

Companies are scrambling to keep up with the rapidly changing landscape of supply chains. The disruptions have been widespread and unprecedented, leaving many businesses unprepared. One of the biggest challenges has been buying correctly and timing production correctly. However, those who can adapt and figure out how to get their goods in on time or have the money to buy early have fewer problems.

To keep your supply chain running like a well-oiled machine, it's crucial to have a solid grip on your sales forecast and take an in-depth look at your production cycle and inventory analytics.

Many companies find that automation is the key to streamlining their supply chains. Robotic process automation (RPA) systems can help to track inventory levels, optimize production schedules and forecast customer demand. In addition, RPA can reduce the likelihood of errors and promote efficiency. In an increasingly competitive marketplace, those companies that can master their supply chains will be well-positioned for success.

Having valuable data at your fingertips — and the right experts on hand to analyze it — can help provide clarity. What is the sales forecast going to be? What do you see selling through in the marketplace? What are the optimum inventory quantities to keep on hand? Answering these questions can help you find your sweet spot in an unpredictable market.

Considering Supply Chain Audits or Assessments

Supply chains are a intricate puzzle of moving pieces, and disruptions can cause ripple effects felt throughout the entire system. The pandemic and recent disruptions have only served to highlight the vulnerabilities of this system. It can be difficult to restructure your process with so many interrelated parts. While the disruptions impact every industry, there is no silver bullet for a solution. Your specific industry and the size of your company determine how you're affected.

If you don't know where to start, you may want to seek outside help to redesign your supply chain management. A supply chain audit or assessment can provide a holistic look at your supply chain process and allow an expert to find your particular pain points. It prioritizes your solutions and guides rebuilding. Understanding the physical movement of goods — and how it interconnects with all other aspects of the business — can help your system be more efficient and resilient.

Next Steps

Our supply chain professionals stand ready to assist you with any help you may need. Contact us today.

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