When you have a large enough supply chain and high enough volume, price volatility is mitigated, and costs are lowered. However, the holiday season has unique circumstances that may force suppliers to ramp up their production volume, causing raw material prices to shoot up.
With the increased workload, the logistics and transportation of almost every company started to experience some crisis. However, planning and adopting innovative supply management strategies can tackle these supply chain constraints. A few such tips are shared here to help you solve the supply chain crisis this holiday season:
Preparing in advance will give you time to figure out possible solutions. However, if you are already facing supply constraints, it will only help a little. Hence, the best solution here is to be prepared in advance by making contingency plans and determining what routes you can take in case of any issue. Stay updated with everything going on in the market and manages your business accordingly.
- Use Third Party Logistics Services
You can manage your supply chain better by using third-party logistics services and improving the overall customer service levels. While providing you with many benefits at relatively lower costs, third-party logistics services will also help you set up an extensive logistics network. For example, MX Solutions – trusted intermodal trucking company that can help you move on quickly when facing supply constraints.
- Work With Multiple Suppliers
It’s always good to have backups when things go south. For example, multiple suppliers for the same product will let you switch to another supplier when one of your leading suppliers is facing issues due to increased demand. This can also cut down delivery times and improve customer service levels when orders are fulfilled faster than promised.
- Invest In Automation Process
In almost every industry today, automation has become an integral part of business process execution for nearly every big corporation. It is an effective method for improving the workflow by implementing supply chain management software.
The software can help you optimize processes and reduce the time taken to complete a task. They can also help with inventory management, shipping, tracking orders, scheduling routine maintenance of vehicles, and managing employee performance feedback.
Bottlenecks are one of the top reasons businesses fail to meet customer requirements by their deadlines. It would help if you found out where your jams are and how to improve them to meet your promised delivery dates to customers.
Hire experts from supply solution companies to analyze your current processes and develop a suitable plan and roadmap to turn around your business within the next six months.
The Bottom Line
The key to ensuring high customer satisfaction during the holiday season is to have a well-managed and reliable supply chain. The right supply chain management strategy will prevent supply constraints or bottlenecks. It’s a good idea to plan, making plans and preparations for various scenarios so your business can stay afloat and deliver products on time.