whether it is unpredictable weather, natural disasters, sudden changes in trade policies, product problems, or unexpected sales surges, business is disrupted in all its forms and degrees. given existing technology, logistics expertise and supply chain data, one might think that the logistics industry has greatly reduced the likelihood of supply chain disruptions. however, the number of supply chain disruptions worldwide increased 36 percent in 2018, according to resilinc, a global provider of supply chain disruptions. why?
1. enterprise supply chain is more complex than ever;
2. logistics operations involve many unpredictable situations.
there are always distractions. without adequate preparation in advance, the operation of the enterprise will be thrown into chaos. retailers need an end-to-end logistics solution with visibility and flexibility so that they can respond and prepare for strategic adjustments in the event of an emergency.
situation 1: unexpected sales surge
an unexpected surge in sales is the most optimistic type of supply chain disruption, but it is still a distraction. whether it's an unexpected celebrity endorsement, a competitor's mistake, or breakthrough research related to your product, a number of external factors can contribute to this sudden increase in sales. if you don't have enough preparation, you will be in short supply, not to mention cultivating enthusiasm and long-term customer relationships. preparing for planned promotions or forgetting to do so is tricky enough, but this unexpected surge in sales is a different story.
so how do you prepare for a sudden surge in orders?
3 questions each amazon seller might ask:
● double expect this interruption before it happens. make sure you make your delivery commitment clear to the buyer so they know what's going on. if there is a sudden surge in sales, the order cannot be delivered on time, but they can sign up at the nearest pick-up point.
● establish clear inventory communication channels. provide customer service and staff with real-time inventory information so that they can best meet customer needs.
● use surge sales as a means of "stress testing" the supply chain. the best way to evaluate the delivery process is to measure actual performance. this also provides a unique opportunity to identify areas for improvement in a low-risk environment.
condition 2: climate
the weather is unpredictable. we've all seen winter storms, hurricane seasons, and other unexpected climates that affect supply chains. in fact, extreme weather and natural disasters were the biggest causes of supply chain disruptions in 2017 and 2018, according to resilinc.
while you can't always predict exactly when and where a crisis will occur, you can still take precautions and prepare for the worst.
first, in high-risk weather areas, such as the southeast corridor of the united states during hurricane season and the east coast and midwest during winter storms, proactive inventory storage is in place. in fact, ace hardware used it before the 2017 and 2018 hurricane seasons. as a result, it was able to deploy generators, propane tanks and other emergency supplies in florida, texas and georgia ahead of subsequent hurricanes.
second, adopt short-term storage and on-demand logistics solutions to disperse inventory. rapid response to weather events by placing multiple inventory points closer to residential areas.
condition 3: product problems
food, toys, clothing and furniture are just some examples of damaged stocks recalled this year -- and that's only in the second quarter. the negative effects of defective products cannot be overemphasized. when you find yourself in this situation, it depends on the strength of your supply chain to make it better or worse.
today, most logistics infrastructure is fairly complex. often, the company works with different warehouse suppliers or third party logistics providers to move the goods to other places, which means that it is difficult for the seller to control the logistics of all the goods. at the same time, deviations can occur at any point throughout the supply chain, and the lack of visibility and flexibility is costly. kiplinger reports that the total cost of the 10 recent recalls was nearly $74 billion.
a top priority for managers today is to ensure structural flexibility. the logistics, marketing and product team, biubiu, remains aligned and ready to react when a product deviates. this includes planning, suspending ongoing or planned promotions for damaged products, delaying shipments, contacting affected customers in a timely manner, and moving quickly to standby stock when customers need it most. to do this, sellers need to have the resources and partners they can use in the event of an unexpected situation, such as scheduling a specific supplier recall ahead of time or developing an action plan to deal with excess inventory.
supply chain disruptions are inevitable, even with careful and aggressive planning. delayed delivery, insufficient inventory, back orders... when all else fails, prioritize the customer relationship in the transaction. surprise tactics can go a long way in keeping customers loyal, especially when deals go wrong. sellers must find ways to make their logistics strategies more flexible in order to prepare and adapt to possible difficulties.
source: hugo. com