FEATURE Supply chain, packaging & logistics
Building supply chain resilience in your business
By Peter Campbell, Commercial Director, Snowshock E
very industry has its own supply chain, consisting of movement of raw materials, products, labour and tools, among others. Part of it is also making sure customers
receive the best experience and products. Customer satisfaction leads to brand loyalty and, to maintain this, sorting out any problems with the supply chain is of utmost importance. Navigating any complications in the supply chain is “supply chain resilience”. Some of the problems the supply chain can encounter are:
Bad weather
Whether delivery via rough seas, land or air, or an issue with stock becoming unusable due to bad weather conditions aff ecting their storage, it is key to ensure products are safe from it. With the climate changing, we will experience unstable weather and more extremes, which companies should account for in their business plans. Bad weather can result in lost cargo and spoiled goods, leading to replacement of stock or spending money on fi xing spoilt goods. This could be resealing a storage unit to be weatherproof, which can be costly and cause delays and even temporary shutdowns for businesses.
Inflation
Hiking prices of fuel, materials, products and services negatively impacts the supply chain. Businesses are fi nding it pricier than ever to aff ord imports, port charges and deliveries. In turn, this leads to businesses needing to rise their prices, too. The cost-of-living crisis also means that fewer people are buying unnecessarily, with 65% of people not buying non- essentials any more, making it harder for businesses.
Worker strikes
The cost-of-living crisis has also put a strain on many workers, resulting in further worker strikes across the supply chain. This includes employees of delivery
22 October 2023 | Automation
services such as Royal Mail off work for several days due to disagreement over pay and conditions. This severely disrupts the supply chain, and customers wait longer to receive their goods. One way of combatting this is to increase workers’ pay, not only to keep employees happy but customers, too.
Combatting problems Companies such as ParkourSC have found ways to combat their own supply chain problems through technology. Advancements such as the Industrial Internet of Things means that businesses can track products better, making sure goods don’t spoil during transportation. By having clear visibility of
the supply chain, this company can help reduce losses.
Having a clear tracking system for your
products can ensure that you are aware of each asset of your business at any time and if problems occur, you would be able to track and resolve them. Preparing your business against supply chain problems ensures that your company continues to provide the best products and services even in a crisis. Whether arranging alternative delivery options in the event of a strike, or ensuring stock storage is checked regularly for problems, putting emergency response plans for each part of your supply chain will ensure the best results for your business. Whilst you may not be able to control the issue, being able to respond quickly and eff ectively can help save your business money, time and energy. Other companies are working to increase supply chain resilience by fi nding the cheapest methods of manufacturing.
This includes nearshoring in which a company can transport their initial product closer to their target buyers, and personalise it locally. Further supply chain resilience measures include buying in bulk to create large stock inventories on products you know will sell, limiting your need to re-order during busy trading times, when prices and time delays might increase. There are many ways a business can build supply chain resilience. First, you must understand where most of the problems might arise – whether fi nancial or logistical. Regardless of the solution, ensuring your customers are happy even during supply crisis is the aim.
CONTACT:
Snowshock
www.snowshock com
[Image: Mika Baumeister for Unsplash]
automationmagazine.co.uk
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