In 2021 supply chain disruptions have had a tremendous impact on all industries. With the surge in demand, how can your organization be prepared for supply chain disruptions? Read on for a few tips if your business has run into this issue.
Recent stats reveal 75% of U.S businesses have experienced supply chain disruption during the pandemic. These include shortages of many raw materials such as metal parts and plastics. There are several ways your company can prepare for these potential disruptions.
A supply chain disruption happens when there is an interruption or break in the manufacturing activities or processes along the chain. Supply chains are made up of interlocking parts, and any disruptions can impact other areas along the operation. These impacts can be felt throughout each step in an organization. Disruptions can happen from natural disasters, transportation issues, and even from manufactures going out of business.
Firstly, you should use a digital twin to see how products may be affected by your supply chain. A digital twin will replicate your logistics process and determine where potential disruptions may occur. In doing so, you can more accurately predict supply and demand throughout your supply chain. You should also develop an emergency plan that includes different ways to obtain raw materials or products. This can be done by developing relationships with backup suppliers, possibly even in different areas of the world. If there are raw material shortages, you can also create an emergency fund to help bridge your business when disruptions occur.
Check out the accompanying guide below if you are interested in learning a few more ways to protect your business from supply chain disruptions.
Infographic created by WSI, a warehousing services company