What to do when there is no clarity about when those much-needed materials will arrive?

After hosting a live event about the current global logistics crisis in our Supply Chain Facebook Community earlier this week, I realized that we made a good summary on tips to navigate the current logistics crisis. So here it goes, hoping is helpful for you 🤓🙏

1) Increase visibility: Understanding where your supplier’s suppliers are, what are their shortages? Their lead times? What are they struggling with? all this information can give you an edge to understand issues and take a more active role in proposing or finding flexible options to accelerate deliveries or find alternatives to the shortages.

2) Prioritize: With ocean containers costing three or four times January 2020 prices, work proactively with your suppliers to prioritize the production of only those goods that still make sense to import. Otherwise, their finished goods warehouse will be full of products you can’t import at a loss. Putting an order on hold and prioritizing other goods you can still move may create or reinforce a culture of mutual collaboration.

3) Split orders and shipments:  Work with your suppliers to break shipments and optimally organize them for you and your clients. They likely want to do everything they can to help you move your goods so that they can release their warehouse space.

4) Prospect other sources:  Prospect suppliers in other regions and identify diverse opportunities to get goods from other sources may help you. You may not think that this is not short-term, but there is no telling what the “new normal” will look like, and in the Supply Chain and Logistics world, a 12-month task often feels like around the corner, so it does not harm to look at one’s options.

5) Investigate alternate materials or technologies: Is it possible that the goods you so severely need can be replaced with another material or technology? The more you know about your supplier’s materials and processes, the better you will be to investigate this and find possible solutions.

6) Can you find local solutions: Many of us may not have looked at a local source because pre-covid prices would not make business sense. That reality may have changed significantly by now, and while it is not recommended to make long-term changes during a crisis, it is worth looking at what potential suppliers in our region are doing to create more cost-competitive options that could potentially be attractive for our business.

7) Leverage the relationship with your supplier’s contact person:  Ask them if they can share what is being done by other clients to resolve the logistics problems, ask for advice or suggestions based on what they see on their end, chances are they help you find solutions that would not jump to sight at your end.

8) Seek expert and current information:  Connect with government or other local organizations that help businesses, economic development offices within the bank industry in your region, business associations, or your network in general. They may have ideas, resources, and information about what’s working and what’s not to help you make good decisions.

9) Try to have a positive attitude:  Don’t concern yourself with the “whys” of the crisis. If you have a positive attitude, have a flexible mindset, and leverage your supplier’s expertise, you may be able to carve a safe place for you and your company amidst the crisis.

Do you agree? Did we miss a good one?

I am looking forward to your thoughts.

#supplychain #sourcing #logistics #covid19impact #supplychainsolutions #supplierrelationships #smes #positivevibes