How to Survive COVID-19’s Effects on the Supply Chain
The current pandemic has affected a large number of people, businesses, and companies. Small and big businesses alike, there’s no one industry that has been spared.
These effects have been so strong and evident throughout the year, in all facets of the business line. As it seems like COVID-19 isn’t going away any time soon, it’s essential for businesses to adapt and do everything that they can for their business to thrive. This starts with having a plan—not just for when the need arises, but also as a precautionary measure.
The following advice is aimed at providing your company with some basic business survival tips during this time and such future occurrences, particularly related to your business’ supply chain:
Stock Up on Supplies
The supply chain of a business can greatly affect inventory. Hence, one of the most important tips for you to apply is to stock up on your supplies, more than usual.
For example, if you used to keep a hundred crates of Product A per month, now you may want to double it. Doing this is especially important if you’re running a business that’s selling essential goods, or those that you know people will still continue to keep on buying despite the pandemic. That way, should your supplier have any shipment delays, you won’t necessarily suffer a lack of supplies. Otherwise, your business will also lose profit more than usual.
Tap into Resources Given by Financial Institutions
This tip applies if you need that extra cash, such as in your supply chain finance, for you to be able to order more in your supply chain, so you can anticipate any possible delays in the future.
If you’re suffering financially now more than usual, there are many financial institutions that are more than willing to give you the financial assistance you need. These lenders are also more understanding and generous with the amounts and interest rates because they also understand the dilemma faced by many businesses today.
Don’t be afraid to explore your options for affordable loans and cash assistance.
Focus on Speed and Agility
The supply chain of every business is all about the speed. Agility, on the other hand, refers to your business’ ability to adapt. This means moving swiftly when any changes come along, brought by this unprecedented challenge through the pandemic.
As your business continues to operate with COVID-19 in mind, the key to achieving these both is through being organized. This isn’t the time for you to have any production delays, or to lose focus on what’s needed to be done.
You can start by holding a meeting with the entire team. Discuss everything that the team needs to know about any changes that’ll apply. That way, you can also brainstorm ideas regarding solving some of the most common problems that you may face, as your business starts to go into full swing.
Check with the Local Authorities on Information that You Must Know About
Another key to surviving through the pandemic is by staying informed. This means having as much information as you need regarding the COVID-19 situation in your locality. You can also bring this one step further by also asking on information regarding the COVID situation in areas where members of your supply chain are located.
When you have this kind of information on your hands, you’ve got power. This includes the power to smoothen out any difficulties that can come, should the COVID-19 situation in one of your suppliers’ areas worsen.
Create a Three-Month Financial Plan
If you’ve previously created an annual or semi-annual financial plan, perhaps now you’d like to make things a little bit different. With the pandemic, people and businesses are learning to take things one day at a time. Projections of the future are now very limited, only to a very few months.
For example, for some countries, COVID-19 had died down but, unfortunately, some of these countries are also now suffering a come-back. Some may have expected this to happen, while there could also be those who were unprepared for it. The same can happen to your place, too, wherever you’re from.
A three-month projection or financial plan is the safest way for you to navigate through your orders, for instance. That way, all departments of your business, particularly the supply chain, won’t have to suffer.
When the pandemic has caused this much of a great effect on businesses, it’s very important for you to do everything that you can for your business to survive. It’s normal for businesses to slow down financially, but you wouldn’t want yours to risk a closure. Of the areas in your business that can be greatly hit, the supply chain is one of the most important. After all, this is that facet of your business that can possibly affect your daily operations. With the tips above, now you have insights on what to do to minimize or avoid these unpleasant effects.