Can Your Business Survive Supply Chain Disruptions?
Building a Flexible Supply Chain for Uncertain Times
Anytime uncertain economic climates hit, many operators question their systems and protocols. The threats of raised prices and supply chain disruptions can leave everyone vulnerable, from restaurants to hospitals. Regardless of industry, operators should focus on building a flexible supply chain for uncertain times.
Supply chain flexibility allows an organization to scale responses on a dime. This allows them to support customer needs whether business sharply increases or decreases. Read on to learn about the elements of a flexible supply chain.
Strong Supplier Portfolios
Do you feel confident in your current supplier partnerships? These relationships may not seem like a big deal during times of economic stability, but as soon as supply chain disruptions arise, you’ll want to be sure that your suppliers are on your side. There are several strategies to employ when planning your sourcing strategy:
Vetting your suppliers before signing onto their programs. You’ll want to look out for signs of past unreliability.
Diversifying your routes to market. Including local, regional, and broadline programs can help you avoid shortages.
Prioritizing supplier relationships. Fostering these connections means that your suppliers will makes sure your business is prioritized during tough times.
If you’re not sure where to start making changes, a third-party procurement expert can provide advice.
Well-Crafted Distribution Contracts
Do you factor your distribution contract in when building a flexible supply chain? A priority for uncertain times, a solid distribution agreement will insulate your business against delays. When negotiating your distribution contract, you’ll want to think about a variety of elements, including delivery windows, payment terms, and delivery vehicle capacity.
Validating the most vital elements of your distribution contract can save you from pain later on.
Simplifying Your Services Procurement
How do you source services like building maintenance or lawn care for your locations? Does each location manager handle this task? If so, you’ll likely want to make a change. Sourcing services on the national level gives you more insight into spend and operational efficiency. It’s all too common for local management to choose unvetted service suppliers or even switch contracts by the month or quarter. This can lead to low-quality and gapped service. Ultimately, this can hurt your brand, as different locations fall below national standards.
When you have the ability to oversee these programs on a national level, you’re able to pivot more effectively when prices change or providers fall short. That way, hard times won’t negatively impact your brand image.
Protect Your Business From Future Uncertainties
Whether you’re concerned about a recession or new location launch, you’ll want to be prepared for the best and worst scenarios. Ready to begin building a flexible supply chain for uncertain times? Discuss your needs with a Foodbuy account manager now.