How Efficiently Does Your Supply Chain Operate? How to Recognize and Avoid Disruptions:

There are many moving parts within a supply chain, which is why efficiency is critical. How well do you understand your supply chain? Does your supply chain function seamlessly? Or, do you notice interruptions are preventing your business from reaching its fullest potential? Recognizing supply chain disruptions and their effect on your business is a crucial step in establishing a prevention plan. Whether it’s a global pandemic or your product container gets lost at sea, how will your company respond?

January 11, 2021

The Domino Effect:

Anything can happen on any given day. Let’s imagine your supply chain is a string of dominoes. Those dominoes are placed with the intention to fall into the next domino or a chain reaction. Once the first domino is initiated, the dominoes begin to fall, one-by-one, hitting the next domino in line until the final domino falls. Unfortunately, suppose a domino is misplaced, or an object interferes with the chain of dominoes. In that case, the chain reaction is suspended, and action is required to continue the falling row of dominoes.

Like dominoes, supply chains are a compilation of interconnected parts intended to work seamlessly together to supply a service or product to a consumer. If and when the supply chain’s flow is disrupted, it takes time, energy, and sometimes additional expenses and resources to get the product or service back on its intended route to the consumer.




Identifying Supply Chain Disruptions:

As much as we all wish for things to run smoothly 100% of the time, we’re smarter than that. Companies need to identify these disruptions ahead of time to prepare our businesses for “if and when” these disruptions occur.

The following are types of supply chain disruptions that have been experienced by all kinds of businesses:

  • Pandemics
  • Natural Disasters
  • Failures or Delays in Transportation
  • Rise in Cost
  • Product Deficiencies
  • Cyber Attacks
  • Global and Domestic Political Instability



How Can You Prepare Your Business To Become More Resilient?

These disruptions are all different and may affect one industry different from another; however, it’s still essential for your business to be prepared. Take, for instance, our current COVID-19 global pandemic. We’ve seen what it can do to supply chains. COVID-19 has affected every step of the supply chain, from the production line to the distribution centers and retail stores. Due to increased production capacity in many factories, manufacturers are sometimes unable to meet consumers’ demands. Simultaneously, freight cost continues to grow, causing businesses to rethink their spending and adjust their product spending for 2021. Unfortunately, the COVID-19 pandemic is not a short-term complication. Our global pandemic will have long-lasting effects on how our businesses continue to function; yet, it’s how we manage, grow, and work through these challenges to develop resilience and responsive operations.

>Manage Product Demand & Build Up Inventory

Anticipate your consumers and identify demand forecasting. Do you have a timeline of ‘seasonal demands’ that you need to be prepared for? Are you familiar with your product’s lead times? It’s more than “What’s selling? What’s not?” Timing is everything. By balancing and maintaining your inventory, ensure that your business is stockpiling enough products that, if a disruption were to last several months, you could continue to run ‘smoothly.’ Have you considered holidays? Make sure you’re prepared not only for your countries’ holiday schedule but also for those in which your vendors are located. For instance, if your supplier is located in China, be respectful of their Chinese New Year holiday in February and know that you’ll need to make sure of your arrangements around this two week holiday.

> Create a Supply Chain Emergency Plan

What happens when your container gets lost or goes overboard? What happens when the world “shuts down” all suppliers, freight, and businesses? How do you ensure that your business continues to everything that it absolutely can to stay thriving? Figure out, down to the bare minimum, what you need to continue operating. What are the most critical components for your business to survive – and focus there, first. While the reality is that all supply chain disruptions unveil difficult situations, understanding and knowing your emergency plan options will hopefully assist and help to continue your business with minimal interruptions.

> Strengthen Your Supply Chain: Consider Partnering With a Sourcing Expert

Is your supply chain appropriate for your business? Or do you need to reevaluate your strategy? Maybe your company has recently experienced a lapse in communication with a supplier? Or, because of COVID-19 travel restrictions, you’re limited on your interactions with customers and vendors? Maybe you want to consider using a logistics expert or sourcing agent?



HB International is here to help you get your supply chain on the right track. Not only do we work to provide high-quality packaging products to our customers, but our HBI team has the capability of face to face interactions with our approved suppliers. Our Quality Assurance team completes in-person product inspections, and vendor audits to ensure your product production continues without interruption. Our team works to mitigate supply chain interruptions and allow your business’s supply chain to run seamlessly.

As your company continues to construct plans and grow for 2021, let us help you be successful.

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