What do you do if your supply chain and logistics are causing bottlenecks in your business operations?

I'd start by thoroughly reviewing the supply chain for the bottleneck. Evaluate your inventory levels vs customer demand, and check your buffer settings in your ERP against forecasts - at a minimum monthly. How good is your logistics provider? - Conduct regular meetings to ensure they proactively address bottlenecks with innovative solutions. Diversify your supplier base to mitigate risks from single-sourcing. Prioritize open communication with internal and external partners. Develop contingency plans/processes to address potential issues, rather than waiting for emergencies. Plan A, B, C, etc. The key is a data-driven, collaborative approach to identify, address, and prevent supply chain and logistics bottlenecks.

Start to map the supply chain process in a workshop with the team. You can use sticky notes to define each activity. I like to use four colours to label four categories of activities: act, review, send, receive. You'll be surprised that all activities can be captured by these four categories. Then, ask for a time estimation per activity. Afterwards, you can assess which activity or cluster of activity is the most time-consuming or creates bottlenecks.

When supply chain and logistics cause bottlenecks, identify pain points and streamline processes. Enhance communication with suppliers and optimize inventory management. Invest in technology for real-time tracking and predictive analytics. Diversify suppliers to mitigate risks. Implement agile strategies to adapt to fluctuations. Conduct regular performance reviews and seek continuous improvement. By addressing bottlenecks proactively, you can optimize supply chain efficiency and enhance overall business operations.

I think the companies worldwide are forgetting about the contingency plans in order to address unexpected issues within the operations caused by political, economical and social matters

Data Analysis: Utilize data from inventory management systems, production schedules, and delivery times to pinpoint bottlenecks causing delays or disruptions. Process Mapping: Visually map your supply chain, identifying critical control points and potential bottlenecks. Analyze lead times, capacity limitations, and communication gaps at each stage.

Why? Why? Why? Keep asking why until you get to the root cause of your bottleneck. Understanding the true root cause helps you to identify the appropriate countermeasure that will resolve the issue. The length of time to identify the root cause may vary with every situation. Be patient if it's taking longer than you expected. Identifying and solving for the true root cause has short term and long term benefits.

Uncovering the root causes of supply chain bottlenecks is essential for implementing targeted interventions that drive operational efficiency and resilience. Root Cause Analysis Employ proven root cause analysis techniques such as the 5 Whys or fishbone diagrams to systematically dissect the underlying issues. By asking "why" questions, you can uncover deeper layers of causality until you reach the fundamental root cause. Addressing the root causes of supply chain bottlenecks is an ongoing process that requires continuous monitoring and refinement. Establish key performance indicators (KPIs) to track progress and identify areas for further improvement.

Gather Information: Interview personnel involved in procurement, logistics, and production. Analyze data trends to identify if bottlenecks are due to: Supplier issues (e.g., material shortages, production delays) Internal inefficiencies (e.g., poor inventory management, inadequate warehouse capacity) Logistical challenges (e.g., transportation delays, customs issues)

Address Supplier Issues: Supplier Qualification: Re-evaluate supplier performance and reliability. Consider diversifying your supplier base to mitigate risk. Collaboration: Strengthen communication with key suppliers. b) Enhance Internal Processes: Lean Manufacturing Principles: Implement lean principles to minimize waste and optimize workflow. This could involve streamlining inventory control, reducing lead times through Just-In-Time (JIT) inventory management, and optimizing warehouse layout for efficient picking and packing. Quality Management System (QMS) Integration: Integrate supply chain and logistics management into your existing QMS as per ISO 9001:2015 standards. c) Improve Logistics Management

Once you have resolved the problem, it is essential to reflect on what happened and why. This will help in mitigating risks in the future and building preparedness for any such events. It is also important to educate the rest of the team on the same. One way to do this could be to make a case example and incorporate it in trainings.