How to mitigate supply chain disruptions with a minimum investment!!

Welcome to my blog, I would like to share some free actions that you can implement at your company or business today in order to mitigate as much as possible impacts to your daily operations.

All of the below notes work perfectly with my customers! the interesting thing is that you don´t need to spend, for sure you already have it! 

 FACTS:

Rising Consumer Demand / Supply shortages at all levels / Global economic concerns / Global Supply Chain disruptions.

 SOLUTION OPTIONS:

 1.       Predictive - Analytics tools: Every company’s daily basis generates valuable information such as inventory, sales, suppliers, prices, cost, customers, new designs, rates, etc. that represents a big opportunity for the solution.

a.       If you already have data but your company is not using it,  change your mind ASAP.

b.       If you don´t have it; never is too late!! Let’s start selecting the key ones.

NOTE: Data is for free! You don´t have to hire new personnel or invest in expensive software, or developments, for now, you just need to capture daily bases what is going on around the area, use the supervisor level to fulfill a standard format that you can easily review as needed.

 

2.       The key data to use and generate productive reports allowing C-levels to take the best decisions should be related (For supply chain disruption solutions) about:

a.       Suppliers: Production Manufacturing LT, Transit time, fully updated information, Historical service level, hits, delivery on time, expedited options offered, get updated your key supplier’s date base, and SUPPLIER PERFORMANCE.

b.       Rapidly identify PRICE VARIATIONS, this can kill your profit in a matter of minutes, detect market changes, consumption variation for your best seller products; set alerts at your computers and mobiles for the key products, and daily review it. (Is very easy to get truly information sources with alerts and most of the time is free).

c.       Get a clear vision of your capacity established and maximize it to the top always looking for efficient numbers, settling planned and structured productions plan, and of course monitoring the rates.

d.       About your shipments local, air, ground, sea, multimodal all of them already increase drastically Year to Year almost 3X to 5X, select the best options offered to look for consolidated of FTL – LTL – Truck rental, 3PL, external warehouses, Amazon, Etc.

 

3.       Set proper and easy asses to KPI & KOI especially to the ones impacted at less 3 times over the last quarter this is a good alert for the company to have heads up and settle preventive actions.

 CONCLUSIONS:

Some shortages will not be possible to mitigate due to global constraints such as Cov-19, demand increases, logistics, crazy prices, and other 1K reasons, you can do nothing when you depend on 3^rd players and not worry your competitors are on the same page but what we can do:

·         Invest a portion of time from your key employees to report daily (written) and weekly (graph) with the key findings, adding the information to a database this week by week will generate the answers that you need to know to fix the problems, ensure to detect first the more repetitive and with mayor value to your business impacting your customer needs, or other that put attention on this will bite your market portion.

·         Use the alerts to fulfill your key items when availability appears regardless of the just-in-time old school method, forget the price just ensure to include the extra at the price, if you don´t pay for it others will do it.

·         Recalculate reorder points as needed, keep updated information obtained from the market, suppliers, customers, competitors, and your company database, holistically view.

 If you have any other questions, please do not hesitate to contact http://aggconsult.com/