Is your business prepared for the next black swan event? Barry Kukkuk, Co-founder at Netstock, provides four tips on handling supply chain disruptions.
For the last three years, businesses globally have been plagued by black swan events – these are events that no one could predict and have a devastating impact on businesses, economies, and the environment.
The most significant learning from navigating unpredictable events – your business needs to be prepared and have the visibility to respond quickly to change.
Your business needs to be fully prepared! With the help of accurate data, you’ll make better decisions about your supply chain planning, allowing your business to become agile and responsive – so you can make the right decisions today to ensure you meet future demand – Barry Kukkuk, Co-founder at Netstock.
Watch Barry’s interview with SupplyChainBrain as he shares the top 4 tips on how businesses can respond to black swan events.
Four tips on how your business can thrive during disruptive events:
#1: Use predictive analytics to monitor and measure your KPIs
If you’re working off static spreadsheets, you won’t automatically be notified of growing trends affecting your inventory levels, such as an increase in supplier lead times or potential stock-outs. Working with supply chain planning software provides predictive analytics that quickly measures which KPIs will be affected by changes so that you can adjust your buying patterns and forecasting.
#2: Everyone working off the same system
Having one person in your business manage all your supply chain planning information is risky. Working off a central system, where the demand planning, finance, sales, and marketing teams have access to the planning enables greater visibility. Should events happen, each department can be better prepared.
#3:Classify your inventory
By classifying your inventory, you identify the high-performing products that contribute the most to your profits. Why stock products where there is no demand? This classification enables you to only order or manufacture the right products you need at a specific time, reducing the risk of incurring excess inventory and increased operating costs.
#4: Understand every link in your supply chain
With visibility of each link in your supply chain, you will reduce the risk of delays to your production line. If you miss a small item needed to complete production, your service levels are at risk. Let’s not forget how the chip crisis has ripped through the global automotive industry.
With accurate data and predictive analytics, businesses are better prepared for future supply chain disruptions. Working with the right supply chain planning software, you can adjust replenishment cycles and forecasting to ensure your business continues to meet demand and accelerate business growth.