How Manufacturers Can Secure Supply Chains and Be Part of the Pandemic Solution (part 1 of 2)

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2020/08/25 How Manufacturers Can Secure Supply Chains and Be Part of the Pandemic Solution (part 1 of 2)

How Manufacturers Can Secure Supply Chains and Be Part of the Pandemic Solution

source from: https://www.flexpackmag.com/articles/90562-how-manufacturers-can-secure-supply-chains-and-be-part-of-the-pandemic-solution

Use the pandemic as an opportunity to look at your company’s policies and practices. Use it as motivation to review your risk and adjust your risk mitigation plans, such as qualifying secondary suppliers for your approved vendor list.

Focus on Supply Chain Continuity

As the pandemic continues, one thing is obvious: Nearly everyone is looking at the continuity of their own business, their supply chains and their ability to meet customer demand now. They’re looking both at securing their own supply and making sure they fit into their customers’ supply chains going forward.

This focus on supply chain continuity makes sense for both the current situation and to better prepare for future supply chain disruption.

Manufacturers always have the risk that their supply chains will suddenly stop production, especially if they rely on one supplier or location. If they’re carrying low inventories, just a short shutdown can have a significant impact on their ability to do business.

On the other hand, if businesses are prepared and can fill the gap as customers’ needs change daily, they should be in a better position to continue operating and create value when unexpected shutdowns occur.

Be a Part of the Solution

So, what are some things manufacturers can do to secure their supply chains and the ability to operate during this crisis — and even help others with supply chain issues?

Secure your ability to operate and communicate that to customers: As a manufacturer, you must first secure your own supply chain and then make sure customers understand how you fit into theirs. Check where your raw materials are coming from (and where your suppliers’ raw materials are coming from) and consider ahead of time how you would produce if your production was directly or indirectly impacted by the outbreak.

Also recognize that customers are worried about it, and they may be out shopping for alternatives not knowing that you are able to supply. Many manufacturers are being asked by their customers daily whether they are impacted by recent shutdowns.

For every customer asking about a manufacturer’s ability to supply, there are likely others concerned, but not asking — and that’s dangerous because they may assume the worst and then go elsewhere without ever consulting you. Be proactive to let them know whether or not your ability to produce is impacted — and if there is an impact, work with them on contingency plans and timing.

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