Covid-19 revealed some rather unpleasant realities about supply chains – they simply were not prepared for their demands by this condition. Unfortunately, this exposed many struggles that have yet to fully sort themselves out and become coherent and easy to manage appropriately.
Thankfully, supply chain planning can be a very streamlined and efficient process that is easy for you to understand and maximizes your potential chances of success. By choosing an option that fully meets your needs, you ensure that you don’t end up struggling to handle this process later fully.
The first thing you need to do here is to create a plan that works for your needs. A typical supply chain plan is something that takes into account a variety of various factors that all align to produce the most benefits possible. These elements that you need to take into account include:
- Statistical forecasting based on past models and levels of success
- New models produced based on the needs of your customers now
- A variety of routes and shipping methods that make sense for your needs
- Easier access to a multitude of various supply chain channels
- Potential emergencies that may occur at any time
This last factor is crucial because it can dictate so much about how your plan is executed. For example, suppose you don’t plan for the potential emergencies that are likely given your supply chain situation – such as flat tires, plane failures, train derailments, and much more. In that case, you will set yourself up for failure by not allowing the adaptability you need to stay on top of things.
At this point, you need to consider your inventory and create a strategy that makes sense for your needs. There are a few different ways to approach this goal, each of which has various advantages that make it more than worth considering. Let’s take a look at a few of these factors to ensure that you fully understand the many ways you can approach this process:
- Gauge your leads and your past sales to get an idea of what you need every day
- Plan around these daily needs and project weekly and monthly demands
- Adjust these potential levels based on elements like your potential income
- Don’t forget to pay attention to demand-based situations, such as more inventory during the holidays
- Understand your profitability flow and your overall arching strategy
When creating your plan in this way, it is vital to consider other elements that may not be as apparent to you, such as the potential risk of closures with some supply-chain sources. It would help if you were ready to update your capabilities, as needed, and to change your route through difficult areas to ensure that your inventory is easy to access and doesn’t become complicated for some companies to receive.
After you have created a pretty simple and easy-to-grasp map for your supply chain plan, it is essential to execute it properly. This step is probably the hardest one to take because you’re going to have to:
- Watch every step of the progress and make sure it goes smoothly
- Create an execution plan that makes sense
- Utilize various tracking steps to avoid common errors
- Adjust your process, as needed, to create better results
Pay attention to these steps and make sure that you work hands-on with your planning and supply chain professionals to create a plan that makes sense for you and provides the kind of long-term success you deserve.