--- layout: default_v3 language: default permalink: supply-chain-risk-management/managing-supply-chain-disruptions.html i18n_link: 1654 updated: 2020-08-28 #--- article key-values ---# collection: default_topiccluster t_keyword: Managing Supply Chain Disruptions tags: Supply Chain Disruptions, inventory ordering software type: supporting page_id: 1654 hreflang_id: 1654 parent_id: 1627 date_published: 2020-08-28 date_modified: 2020-08-28 #--- javascript schema ---# javascript_schema: - script: jquery_3_2_0_min - script: bootstrap_min - script: article_infinite_scroll - script: article_mix_infinitescroll - script: article_mix - script: article_mix_faq - script: article_mix_toc #--- section schema ---# section_schema: - section: nav-main_menu - section: article_body_v2 - section: footer - section: schedule_demo_cta #--- page key-values ---# meta_tags: t_meta_title: Managing Supply Chain Disruptions- 6 Tips and What to Expect t_meta_description: By managing supply chain disruptions, companies can avoid delays due to unexpected events. This can help promote efficient workflow and ensure customer satisfaction. t_meta_abstract: By managing supply chain disruptions, companies can avoid delays due to unexpected events. This can help promote efficient workflow and ensure customer satisfaction. i_meta_image: article_body: json-ld_article: v_date_published: 2020-08-28 v_date_modified: 2020-08-28 author: p_author_id: 113 t_author: Chloe Henderson p_author_url: chloe-henderson.html i_author: 113.jpg t_author_description: Chloe received a bachelor's degree in journalism and mass communication from Ashford University and is currently a digital content creator for Hubworks. In her free time, she enjoys acting, writing, and spending time with family. p_author_facebook: //www.facebook.com/HubWorksApp p_author_twitter: https://twitter.com/HubworksApp p_author_linkedin: p_author_instagram: feature_snippet: p_type: text t_title: t_description: content: heading: t_title: Managing Supply Chain Disruptions- 6 Tips and What to Expect t_description: By managing supply chain disruptions, companies can avoid delays due to unexpected events. This can help promote efficient workflow and ensure customer satisfaction. image: i_image: managing-supply-chain-disruptions-6-tips-what-to-expect-1598548790-4801.png t_image_description: Supply Chain v_image_attribution: Supply Chain Disruptions v_image_license: pexels.com v_video: paragraphs: - t_headline: t_text: Managing supply chain disruptions requires businesses to assess the potential threats in each phase of their operations and develop plans to mitigate these risks. A strategic emergency plan ensures that operations can continue amidst challenging times to maintain order fulfillment and healthy cash flow.

To minimize the damage of disruptions and limit exposure to risks, organizations must first identify the threats they are likely to face, then analyze the impact on the supply chain and the appropriate counteractions. p_headline_type: h2 image: i_image: t_description: v_attribution: v_license: callout_text: - t_headline: What is Supply Chain Disruption? t_text: The supply chain is the network of businesses, operations, and employees necessary to transport a product from a vendor to a consumer. This includes every step from gathering the raw materials and manufacturing products to distributing the goods for final sale. While each step in the supply chain has its own duty, processes depend on each other. Therefore, if one operation experiences a delay, the following processes fall behind schedule as well.

A supply chain disruption refers to any event or sudden change that negatively impacts workflow, whether it occurs internally or externally. Disruptions can happen on a small or large scale, ranging from minor issues within a phase to complete shutdowns. The 6 most relevant types of supply chain disruptions include-

p_headline_type: h2 image: i_image: what-is-supply-chain-disruption-1598548791-1189.png t_description: Supply Chain Disruptions v_attribution: Supply Chain Disruptions v_license: pexels.com callout_text: - t_headline: 6 Tips to Prepare for Supply Chain Disruptions t_text: Managing supply chain disruptions is essential for keeping processes and all involved parties on schedule. Therefore, companies should take a proactive approach to operations management to mitigate risks and ensure continuity.

There are various supply chain management tips that businesses can employ, including-

1. Develop a Supply Chain Emergency Plan

Businesses should have a contingency plan in place for every phase to ensure operations can continue without delay. When developing an emergency plan, management should consider building an additional budget and establish alternative storage locations for products.

2. Stockpile Inventory


Setting aside extra inventory ensures companies can continue operations for several months, even during unexpected events. This could entail storing raw materials, components, or finalized goods in separate locations in case of demand surges or product shortages.

3. Assess Supply Chain Vulnerability


Management needs to designate time to assess risks in the supply chain and determine vulnerable phases. Risks could include potential political, economic, and environmental threats, such as new regulations that may affect how operations are conducted. This allows organizations to find alternative methods ahead of time to avoid delays.

4. Line up Alternative Vendors


Businesses should never rely on just one vendor, as any of their disruptions could negatively affect the company's entire supply chain. Therefore, organizations should find local backup suppliers to step in during emergencies.

5. Diversify Supply Base


Companies should also identify suppliers in different locations to expand their supply base and avoid disruptions. By establishing relationships with vendors outside of the local economy, businesses can ensure they have access to essential goods if suppliers fall through due to local disruptions.

6. Implement Risk Evaluation Tools


Modern supply chain technology enables companies to evaluate and mitigate emerging risks. Advanced analytics automatically monitor trends and alert users of unusual activity, allowing management to respond quickly. Software tools can also detect environmental, geopolitical, and cyber threats. p_headline_type: h2 image: i_image: 6-tips-to-prepare-for-supply-chain-disruptions-1598548791-4551.png t_description: Supply Chain Disruptions v_attribution: Supply Chain Disruptions v_license: pexels.com callout_text: - t_headline: The Future of Supply Chain Technology t_text: New technology has made it simple to streamline supply chain operations, reduce inventory expenses, and improve the visibility of each phase. By integrating inventory, replenishing, and forecasting software, businesses can automate analytics and standard stock procedures.

Companies can program ordering solutions to trigger reorder points when metrics show depleted stock, avoiding potential stockouts. These features also optimize inventory levels by monitoring the company budget and reducing unnecessary expenses such as holding and shipping costs.

Advanced ordering systems also show local vendors, catalogs, and alert management whenever prices change, allowing them to find new suppliers. Forecasting solutions can consider these insights when tracking trends and monitoring upcoming fluctuations in customer demand, so management can determine how to change optimal stock levels.

With proper supply chain management techniques, coupled with advanced technology, businesses can limit their exposure to damaging risks that can disrupt processes. While not all threats can be mitigated, preparing for emergency situations ensures companies can remain in business during adverse conditions. p_headline_type: h2 image: i_image: the-future-of-supply-chain-technology-1598574053-2287.png t_description: //pixabay.com/photos/concept-man-papers-person-plan-1868728/ v_attribution: //pixabay.com/photos/concept-man-papers-person-plan-1868728/ v_license: Creative Commons Zero callout_text: event_body: json-ld_event: t_name: Employee Scheduling for Restaurant Managers t_description: Attendees will learn how create excellent schedules. The class teaches managers how to estimate the number of employees they need to staff their locations; how to accurately forecast their customer demand; how to quickly and accuaratly write and communicate schedules to employees; and how to evaluate the accuracy and optimization of their schedules to make adjustments. v_start_date: 2022-08-08 i_image: p_location_name: Altametrics Online Webinar Course p_address: webinar.altametrics.com?site=altametrics v_price: 10.00 t_offer_description: Priority Registration v_registration_url: webinar.altametrics.com?site=altametrics ---