What Is Supply Chain Disruption?
Before we dive into how you should manage and avoid supply chain disruptions, let’s learn what is supply chain disruption? Disruption, as any dictionary would suggest, means a disturbance that brings a hiatus or freezes an event, or a process. This can be either due to excess of some factors, or lack of it. So, a supply chain disruption could occur when the flow of goods to the consumers comes to a halt. The businesses, the consumers and country’s economy all suffer whenever such an event takes place.
So, what causes a supply chain disruption? There can be many reasons for it. Sometimes, a company’s processing plant pauses when a machine breaks down. Sometimes, it can be extreme weather conditions. Or sometimes, it can be unfortunate, and uncontrollable incidents like the Covid-19 pandemic. Companies can ensure that their systems are upgraded every now and then, raw materials are available in the right amount and quality, the transportation and manufacturing demands are correctly met under usual circumstances. Yet, desperate times like Covid-19 don’t allow such to happen.
Before Covid broke out, who had expected that the world could get short of basic sanitary supplies like toilet paper, hand sanitizers, and soaps? No one! Still, we witnessed many medical and pharmaceutical supplies being short too. Why? Because the demand for specific products suddenly got too high while the production remained intact !
Why Did The Companies Not Increase Production?
The reason was short of manpower, for one. People were fighting against covid-19 while also trying their best to earn bread for their families. The governments were putting in maximum efforts to keep the country’s economy least changed. Yet, we can’t deny the fact that many people lost their lives and there’s a noticeable shortage of manpower. Another important reason was shortage of resources. There are many products that are made with a variety of components that are manufactured in various parts of the world. If three companies are collaborating to make one product, and the two of them agree to increase the production while the third one can’t; the product can never be made!
How To Manage Global Supply Chain Issues?
Let’s discuss some tips to manage global supply chain issues.
- Create a management team:
- Efficient communication:
- Do what’s necessary:
Your company should have a team of people whose only task is to handle supply chain disruptions and avoid them from happening. We understand that a company’s operation is subdivided into many integral sections. In today’s world, your managers can’t take up such a big responsibility, while also managing their primary tasks.
The best thing you can do while tackling a crisis is efficiently communicating the needs both internally and externally. Ensure that there’s a proper communication between your company, and the stakeholders, suppliers, consumers, analysts, employees, and media. While you’re at it, also ensure that you’ve an individual or a team specifically handling the communication task. Any company has chances of enhancing the disruption if they don’t have a singular voice talking upfront.
Once your management team comes up with a plan, and communicates it to all relevant parties, it is your job to ensure that the process works smoothly. If there’s any need for capital or more manpower, and such, the company should ensure that the management team has the authority to work on their proposed plans.