Supply chain issues can make it hard for companies to keep customers happy, let alone profitable. For smaller retailers in particular, shortages and delays can be especially catastrophic. After all, they may not have the cash reserves that larger retailers can draw from to cover losses resulting from inventory shortages or delayed deliveries.
Many of the most pressing supply chain issues today stem from economic and geopolitical problems, such as the Russia-Ukraine conflict that restricts airspace for planes, trains, and ships. In addition, rapid inflation and rising energy costs have led to higher-than-normal rates for freight services.
The impact of these issues can ripple across the entire supply chain network from raw materials to manufacturing, production, and final distribution. This complexity makes it difficult to pinpoint the root causes and to mitigate the impact of supply chain disruptions.
The best approach to dealing with these issues is a proactive one. To avoid delays and ensure that production can continue, supply chain managers can look for alternative suppliers. They can also reduce risk by storing and reserving space for goods in locations closer to where they’ll be sold.
Supply chains are also becoming more resilient, thanks to new technologies that improve visibility and make it easier for logistics managers to match freight loads with transportation capacity. Manufacturers can also use 3D printing capabilities to manufacture components and subassemblies locally, which cuts the reliance on foreign suppliers and enables quicker resolution of delays.