How to manage risk in your supply chain
All supply chains have to be well equipped to deal with risk. Things can and will go wrong, but when your business relies on your supply chain to function, any unforeseen circumstances can carry high costs in damages and lost revenue.
To understand how risk could impact your supply chain you should start by thinking about the effect on your customer. If something was to go wrong, what would it mean for the service you offer and how quickly could you get the issues resolved?
An important first step is to work backwards from your customer and try to identify where the pressure points are in your supply chain. Start with the basic issues, do you have enough staff available at all time to deal with a bad sicknesses bug? Do you have the visibility of stock to overcome demand spikes? These are common issues that won't cause a lot of damage, but carry the most immediate risk.
As you start to work further backwards from your customer, you will find the risks get less likely but more severe. For example, could fire damage to a central stock holding leave you unable to operate? The cost of this in physical damage could be high, but the loss of potential revenue while you are rebuilding your network could be even higher, so finding ways to minimize these risks is key to maintaining a stable supply chain.
ByBox has a number of solutions in place to help mitigate risk in your supply chain. For example our proprietary warehouse management software, Thinventory™, can be configured to raise a pick or resupply order every time your stock drops below a certain level, so if you want to maintain a minimum stock holding across a number of locations, you don't have to monitor stock movement manually.
If you are interested in finding out more about ByBox solutions that can help you manage risk, or would like to speak to one of our team about reducing risk in your supply chain, get in touch by filling in your details at the bottom of this page!