The expectations of consumers and suppliers have ebbed and flowed over the past 24 months of the global COVID-19 pandemic, taking the marketplace on some wild swings. We have hit low valleys of supply chain disruption and scarcity, and high peaks of overabundance and strong inventory. One thing has become clear for both our staff and clients at DMW&H is this: you need to have a plan for the future.
Here are a few tips for keeping your supply chain prepared during these uncertain times.
KNOWN UNKNOWNS
In many ways the biggest lesson of the pandemic for warehouse logistics has been one of uncertainty. Over the last two years businesses large and small have all tried to put in place new risk-management plans for their supply chains, knowing that things could change in a week or even a day’s time. The first step here is acknowledging that factors beyond your control are going to have a direct impact on variables like demand and inventory, and taking the steps to plan accordingly. Having a concrete but adaptable plan down on paper to deal with these changes is where our team at DWM&H is here to help. Gathering information from our own customers and larger market trends, we have worked to develop risk management strategies that can be implemented for a number of different applications.
DECENTRALIZATION
Decentralizing fulfillment centers is a trend that predates the pandemic. With customers having greater and greater expectations for fast shipment times and easy returns, it has made sense to split off shipping and receiving centers to more and smaller areas. Supply chain disruptions and inventory shortages caused by the pandemic have only made this industry-wide shift more important. Across a range of consumer goods, we have seen supply chain bottlenecks at large production or warehouse facilities as workers come down with COVID-19. Shifting to a model with smaller and more adaptable fulfillment centers, or taking advantage of third-part options, can really pay dividends.
OPPORTUNITY
Because businesses have been so hard hit by the pandemic, opportunities continue to emerge for improvement from local, state and federal support programs. Now is an ideal time to make supply chain improvements through capital projects like infrastructure or large renovation projects. With interest rates at all time lows, borrowing to fund upgrades has never been easier. Risk management plans only work when facilities, networks and employees have been properly set up to act on new protocols. This often means new training, outsourcing, and logistical support. All of these improvements can be addressed more easily by taking advantage of the business relief opportunities available from our government.
COMMUNICATION
Adapting to all of these challenges depends crucially on transparency and communication. Make sure that your managers, employees, and especially customers are aware of the work being done to support your supply chain in the face of adversity.
