Protect your Business from Supply Chain Disruptions in 2022
Supply chain disruptions can come in many forms, such as the global pandemic, fire, political upheaval like looting, or even infrastructure issues such as load shedding. These disruptors interrupt your supply chain operations and require detours that will cost you money, time, and headspace.
According to a recent report by Investec, the general market consensus is that businesses will continue to experience supply chain disruptions until at least the end of the first quarter of 2022.
Daniel Moritz, CFO of alternative lender Merchant Capital says that as a business owner you cannot only focus on what you know. “You need to constantly be planning the various unknowns which might befall your supply chain.” Daniel says that by carefully managing potential disruptions you will place yourself in the empowered position to understand what can be avoided and what tools need to be utilised in order to maximise response and resilience.
What are the steps needed to protect your business from supply chain disruptions? Here are some tips below.
Invest in the Right Technology
This is critical, and all businesses should be investing in tech in 2022 if they haven’t done so already. Your chosen tech ideally needs to integrate all related business data in your operation including all valuable data relating to your customers, sales, suppliers and operations. When it comes to supply chain and logistics management, TSI’s Digital Control Tower is the end-to-end digital platform with a difference.
Diversify your Suppliers and Manufacturers
This was a lesson that many learned the hard way when the pandemic broke out. By diversifying, you have options when you need them. You are less likely to get stuck without stock or left stranded. The cost of diversifying might be higher, but you are protecting yourself against even higher costs in the long run.
Don’t forget about Risk Management
Today, supply chain management involves the end-to-end flow of services and goods, including all the operations which transform raw materials into their final products. “Effective supply chain management requires the business owner to streamline the supply-chain aspects of the business in order to give customers more value and provide your business with a competitive edge,” says Daniel Moritz.
Your Supply Chain and Cash Flow are Linked
Understanding that your supply chain can’t be separated from your cash flow is essential to the survival of your business. With your cash flow being directly linked to your product lines and service deliveries, you will also need to forecast your cash flow effectively.
With supply chain disruptions being inevitable, you need to ask yourself what the cost implications of those disruptions will be. Do you have access to credit if you need it? Do you have relationships with alternative lenders? These are all important questions when it comes to cash flow management.
TSI’s technology helps give you a full view of your entire supply chain while saving your money at the same time. Book your demo today and let us show you what we can do for your business.