The ongoing coronavirus crisis has highlighted the importance of supply chains. During these tough times, companies need to be able to source and supply goods without any hindrances. However, this is proving to be a difficult task because of the major complicacies that are currently being seen in global supply chains. For example, it has become harder for companies to obtain approvals and meet compliance requirements. Despite these challenges, the ongoing pandemic presents a major opportunity to companies in the form of improving supply chains for the long run. This blog focuses on discussing the ways in which companies can build more resilient supply chains.
Supply chains are a critical component of modern businesses. This is because modern companies tend to source their raw materials from different parts of the world. While some of them are highly reliant on exporters that are located thousands of kilometres away from them, others are facing local compliance challenges. In order to build a more resilient supply chain, the first step is to analyse and review your existing operations. This will help you in understanding the degree of dependency that you have on certain nodes. If you are too reliant on export and import, then you may need to alter your sourcing methodologies.
Another step that is needed to build a more resilient supply chain is that you need to review the risk associated with each supplier. Such a risk assessment exercise would help you in mitigating the key operational risks over the long term. It would also make sure that you are fully compliant with all regulatory requirements. You could also build up a risk mitigation plan that helps you in dealing with external threats such as a global pandemic. These initiatives could make your supply chain much more robust compared to before. They could also ensure that you are able to minimise business disruptions.
The third step is to take the help of a supply chain management solution. Alternatively, you could also deploy a global trade management software. These solutions could help you in collating all your export/import related data in a single place. If all your data is collated in a single dashboard, you can easily identify the weak areas within your sourcing process. This will also help you in tracking the flow of goods and ensure that you can minimise the turnaround times. These solutions are built in such a manner that you can control and monitor all your processes in one place.
The fourth step could be to re-align your sourcing and distribution channels. These channels need to be aligned in such a manner that any process delays can be minimised. For example, you could look at channels such as e-commerce sales in order to diversify your distribution network. Similarly, you could start sourcing your raw materials from local producers, even if the costs are comparatively high. Such realignment exercises could go a long way in helping your supply chain becoming more robust.
Thus, it is clear that exporters need to build more resilient supply chains that could help them in countering any major disruptions in the future. We can help your business in strengthening supply chains and dealing with global crises. Our global trade management software ensures that you are achieving full compliance at all times and helps you in making quicker decisions. Please contact us to find out more about how we can help you with our global trade management offerings.