For most, the ins and outs of running a business never occur to them. Yet recent global events have shed light on supply chain issues that affect everyone. Brexit, shipping container shortages, and the Covid-19 pandemic contribute to current problems with stock for many items. For instance, a semiconductor shortage is wreaking havoc on the manufacture of game consoles, home appliances, and new cars, all of which rely on computer processors.
Anticipate Market Trends
No matter your sector, you can somewhat insulate yourself against specific supply problems by keeping an eye on market trends. For instance, renovation issues and new home builds typically occur during the summer. As a construction company, order industrial supplies earlier to beat the inevitable shortage before the season begins. Semiconductor shortages occasionally happen, so a drop in supply from manufacturers like Intel and AMD is anticipated. A growing PC market and the launch of next-generation video games consoles are contributors.
It might sound counterintuitive, but overstocking will lead to supply issues. For instance, if everyone has the same idea to order more than what they need, some will ultimately be left without. Of course, for limited supply control to work, everyone needs to be on the same page. Still, some unscrupulous individuals see opportunities for competitive advantage. However, it would help to increase your inventory when necessary and appropriate. Supply versus demand analysis is crucial for stocking as you need to rather than when you panic.
Master Stock Control
Mastering stock control is vital for successful business operations. Supply and demand play a crucial role, but you cannot foresee supply chain issues in most cases. However, you must always be aware of stock that requires replenishing and when. If you don’t keep control of your inventory, you risk shortages and reduced sales or manufacturing. In addition, droughts are likely to turn a customer away and negatively impact your reputation as a reliable source. Fortunately, you can keep track of stock with apps like myStock, Inventory Now, and Zoho. Additionally, you can install automated AI systems if your budget allows it.
Be Honest With Clients
All parties are part of the chain, from your suppliers to yourself and your customers. And supply chain issues are beyond anyone’s control. Therefore, you need to be open and honest with customers about anticipated shortages. Never promise something you cannot deliver, and explain why you cannot supply something. It is also beneficial to explain how the disruption will affect the entire industry and for how long. As a consolation, offer alternatives or take contact details to inform customers when you restock.
Source Alternatives if Possible
Some products are vital and cannot be replaced. Yet most can be switched with alternatives. For instance, the raw materials for semiconductor manufacture are established, and we cannot make adequate processors without them. However, suppose you operate a hair care store, and your usual supply of a best-selling shampoo dries up. In that case, you can offer customers an alternative until you restock. Of course, you can also take the opportunity to introduce customers to a more cost-effective or possibly better product, such as environmentally friendly.