How Businesses can Manage Supply Chain Woes

Add “supply chain shortage” to the list of current obnoxious phrases business owners hear on the daily. Independent business owners face regular challenges on a daily basis. Sourcing materials essential to run a business is becoming a larger headache in the mix. Everything seems to be increasingly plagued by delays. Some items are stuck in transportation clogs. In other instances there are no labor and/or raw materials to produce the end product. Whatever the cause, there are weak links in the supply chain that business owners have to consider.

Small and independent business owners don’t have the large purchasing power and heavy weight to throw around that big business does. However, compared to big corporations small businesses have the advantage of being able to make quicker decisions and implement creative solutions. Usually smaller companies can make these maneuvers without quite as much riding on the line too. Business owners can get ahead of supply chain issues with a multi-faceted approach:

Diversify Suppliers for a Stronger Supply Chain

Whether sourcing raw materials, promotional items, or cleaning supplies identify more than one vendor for everything. This could mean looking at vendors offering the same item within the same industry or maybe serving a different industry (where your competitors aren’t looking!). A second vendor might be located in a different state or country. An alternate vendor might even be hard to locate because they don’t easily come up in a google search. Regardless of how you discover additional sources, having a backup vendor will strengthen your supply chain.

Network to Close Supply Chain Gaps

Use your networks (local and wide) as a resource for supplier suggestions or to simply source what you need secondhand. This could mean reaching out to physical community members locally or to a broader industry trade group. Business organizations at every level can be helpful too (i.e. your nearby Chamber of Commerce or county economic development group). Owners may also be able to network across industries with communities they identify with (i.e. International Women in Business or Young Entrepreneurs Council). I know, not every industry is as collaborative as craft beer, but allies within your industry could prove useful in combatting supply chain challenges and beyond.

Give your Supply Chain More Time

It’s tough to forecast the next year, next season, or even next month in business planning. This is a greater struggle for small business owners who are wearing multiple hats in their business, and pulled in different directions daily. However, current supply chain shortage means advance planning is crucial. Therefore, plan to order everything and anything earlier than what would have been sufficient a couple years ago. Use whatever tools you need to make this happen: schedule calendar reminders far in advance, create task lists with due dates, or hang sticky notes everywhere. Find a system that works for you!

Flip your Ordering Process

Don’t waste time preparing an order that requires a lot of footwork. Instead start by asking which items are available and in stock. Then work backward to build your order: quantity, design, etc. Last fall this was huge time saver for me in ordering promotional glassware and t-shirts. This strategy won’t help with every supply item. In some instances ordering “backwards” can help.

Get Creative

Sometimes supply chains are broken and no amount of planning can get a business where it needs to be. Take that 1000 level view of your difficult task at hand or even entire business, and consider what could be different.

Leave the Excuses Behind

Supply chain issues are widespread. Excuses only satisfy those who make them. Operate with integrity, quality and full information. Just leave the excuses behind.

Business owners check these posts out too —> Small Business Owners Should Stop Reacting, Small Business Needs To Be More Than Local.