If you run a business that depends on lots of different suppliers, then supply chain resilience is crucial. A major development in the world of logistics in the past year or so is that businesses have realised that just-in-time manufacturing is well and truly obsolete.
Instead, businesses want secure, resilient, and future-proof supply chains that will enable them to provide the right goods and services to their customers, exactly when they are needed. With that in mind, read on to find out the essential tips for building a resilient supply chain in 2021.
1. Opt for Pre-Assembled Products
Gone are the days when a business owner would have a million different suppliers for every single stage of their process. Now, it is all about opting for pre-assembled products that come from a single supplier, thus reducing dependency on others. Let’s say you want to build hundreds of luxury bathrooms for a hotel.
Instead of having one supplier for your sinks, one for your floor tiles, and so on, you could opt for prefabricated bathroom pods manufacturers that can deliver completely ready-to-use, sanitary bathrooms to your site in one go. This can help you reduce your overall supply chain risk.
2. Use Data to Determine Demand
The key to supply chain resilience is good data. Without detailed, real-time numbers, you won’t be able to know what your customer demand is, what your future demand will be, and what your own supply needs are. Underdelivering or overstocking can be very costly for any business.
Use honest figures and work with your team to get a clear picture of your present and future demand. Consider future demand factors from every possible angle, so that you are unlikely to be caught off-guard.
3. Ensure Quality Control in Your Supply Chain
A major risk to your supply chain concerns quality control. If you have an atomized, dispersed supply chain, it will be much more difficult to address any issues of quality. That’s why you should opt for one large supplier of several products that can guarantee quality control on their end before they ship to you. Let’s go back to the hotel bathroom example.
If you choose to buy bathroom pods prefabricated for your hotel, you can trust that your supplier is constructing the finished product for you and testing for quality every step of the way. This can save you a lot of time and money further down the line.
When you purchase your materials from a supplier—especially when it comes to items that could cause significant damage when they malfunction like a Concrete Fastener—the quality of those products will directly translate into the overall finished product. If you purchase inferior materials and labor hours are wasted during installation, this will result in an increased cost for the customer. Investments in better outcomes and fewer labor hours will always pay off in the long run as long as there is a good structure behind that project. It doesn’t matter if it is a residential or commercial construction project because these errors can be financially draining and often can ruin a reputation with customers who have had bad experiences with other projects using inferior building materials.
4. Build Strong Relationships
This might just be the most important thing to remember. If you have strong and lasting relationships with suppliers that are built on trust, you will be able to more easily fix things when they go wrong. Get to know your suppliers and develop a genuine working relationship with them.
This will ensure that you are at the front of the queue if there are any future supply shortage issues. It means you will always be able to get on the phone with your supplier to discuss any logistical and price issues you wish to address. Overall, it means your supply chain will be more secure throughout your business lifecycle.
By following these simple principles, you can build a supply chain that is able to withstand even the most challenging logistical issues.