Here's how you can tackle supply chain issues as a franchisee.

Diversify Suppliers: Relying on a single supplier can be risky. Establish relationships with multiple suppliers to ensure a steady flow of goods even if one supplier faces issues. Inventory Management: Maintain optimal inventory levels to cushion against supply chain disruptions. Implement advanced inventory management systems to forecast demand accurately and avoid stockouts or overstocking. Technology Integration: Use supply chain management software to enhance visibility and coordination across the supply chain. This can help in tracking shipments, managing orders, and predicting potential disruptions.

As a franchisee, addressing supply chain issues requires a strategic and proactive approach. Here are some steps you can take: 1.Have a clear communication with franchisor and give feedbacks about the recurring issues so that it can be resolved. 2.Use historical sales data to forecast demand and plan inventory levels accordingly. Work on safety stock and aim for Just in time inventory. 3.Implement software solutions to track inventory, orders, and shipments in real-time. Automation is the key going forward. 4.Identify Local Suppliers, source products from them to reduce lead times and transportation costs. 5.Build a network with other franchisees to share best practices and collaborate on bulk purchasing.

To tackle supply chain issues as a franchisee, establish strong relationships with suppliers, maintain clear communication, leverage technology for inventory management, diversify sourcing options, implement just-in-time practices, and monitor market trends to anticipate disruptions. Regularly review and adjust strategies to ensure efficiency and resilience.

Assessing and quantifying risks is key to having a performing supply chain. The main risks are: 1) Capacity risks: any risk that could induce an unpredicted capacity loss (absence, machine breakdown) 2) Suppliers-induced risks: when part of the products or components are bought or subcontracted, we add external risks to our supply chain (quality issues, transport, and delivery, bankruptcy) 3) Prediction risks: most of the production planning strategy is based on predictions of the demand. Divergences between prediction and reality can induce overstocking and stockouts To assess these risks, we should include a margin in the capacity (utilization ratio), multi-sourced critical components, and define safety stocks to absorb volatility.

As a franchisee facing supply chain issues, start by assessing risks such as supplier reliability, transportation challenges, and market demand fluctuations. Diversify suppliers where possible to mitigate disruptions. Maintain open communication with the franchisor and fellow franchisees for shared solutions. Adapt quickly to changes to ensure consistent service and product availability.

Building strong relationships in franchising involves fostering trust and open communication with suppliers, fellow franchisees, and the franchisor. Regularly engage with suppliers to understand their capabilities and build contingency plans. Collaborate with other franchisees to share insights and best practices. Maintain a constructive dialogue with the franchisor to align goals and address challenges proactively.

Having a strong relationship with suppliers means having a transparent relationship. Being early aware of suppliers' issues can strongly decrease stockout risks. Indeed, timing is key, disruptions are easily compensated when we have time. The earlier the better. In exchange, I believe that the company should also be transparent with its suppliers, giving them predictions and helping them to be right-dimensioned.

Develop relationship with upstream vendors will help us to negotiate in bad times with them to support businesses and also they provide shelter during worst time faced by downstream vendors like achieve less sales targets.

Building strong Supplier relation ships it’s not only to have long term relation but also to share information from both sides. The most difficult thing to do is building trusted relation with suppliers to achieve an strong supply chain, specially in difficult times. Select your preferred suppliers to whom you must have a very close communication, people engagement and share critical information of your business, it means your supplier is in fact an extended part of your franchise. Start with a deep knowledge of supplier market in your critical gods and services, then use a matrix that evaluates supplier relative importance vs performance. The ones located at right superior corner will be the best supplier for your franchise.

Generate relationships of trust, where the main business is profit for both parties. Developing tactical and strategic businesses that are scalable over time.

9. Utilize Data Analytics: ? Data-Driven Decisions: ? Predictive Analytics: 10. Align with Franchise Policies: ? Compliance: ? Collaborate with Peers: 11. Negotiate Favorable Terms: ? Bulk Purchasing: ? Flexible Contracts: ? 12. Monitor and Review Performance(KPIs & Regular Reviews)

I have experienced that establish partnership can sometimes be a difficult path and requires time and effort from both parties to achieve excellence. Build strong relationships you can relay on with maintenance, communication, updating and improvement of work.

Having multi-sourced components/products consists of great diversification. This way, in case of a single supplier’s disruption, the stock cover would be less impacted than if he was the only source. This might also help deal with demand increase in the sense that each supplier would absorb only part of the increase instead of all of it.

Realizar a Gest?o da carteira de fornecedores de forma inteligente e profissional, prevendo falhas de processos ou rupturas do estoque evitam que a demanda da sua empresa n?o seja atendida. Outra quest?o é em rela??o ao custo, que comparando entre Fornecedores podemos trabalhar com uma boa margem no mercado.

Effective inventory management in franchising involves maintaining optimal stock levels to meet demand without overstocking. Utilize inventory tracking systems to monitor stock levels and trends. Implement forecasting techniques to anticipate demand fluctuations. Coordinate closely with suppliers for timely replenishment. Regularly review and adjust inventory policies to minimize waste and maximize profitability across franchise locations.

JIT is only possible where much reliable suppliers and supporting infrastructure is available. However, if you know your inventory requirements clearly along with consumption schedule, using reliable softwares, trained, dedicated and efficient staff you can get a better inventory management

The ERP system will be your best friend when trying to leverage technology to drive supply chain efficiency. Especially as a franchisee, ERP systems such as SAP or Oracle Cloud allow for real-time inventory management across multiple facilities to avoid stock outs. You can use the systems to your advantage and plan farther out than initially intended. This leaves room for error and avoids delays.

Effective inventory management in franchising involves maintaining optimal stock levels to meet demand without overstocking. Utilize inventory tracking systems to monitor stock levels and trends. Implement forecasting techniques to anticipate demand fluctuations. Coordinate closely with suppliers for timely replenishment. Regularly review and adjust inventory policies to minimize waste and maximize profitability across franchise locations.

Inventory management, risk analysis, supplier relations ships and technology support is not enough for a successfull supply chain. As a franchisee you will also need a very strong procurement process with a very competent team. Procurement will manage a very big part of your spend, so they must be able to minimize cost and capture savings and benefits from your suppliers increasing your profits and achieving best results in your business operations. I recomend to have a certified procurement process manage by competent and also certified people in strategic sourcing models like CIPS, CPCA or others available. In my professional experience, building an strong procurement team is a profitable investment in any company.

Before bringing any franchise it’s important to understand culture and learn more about country. I had experience where for example some franchise policies not working in one country , then I analysed the whole Business and localized franchise procedures for company to become more successful. This is not possible with all franchise , but with structured negotiation you can always come to agreement. It’s also important to understand how alternative franchises operate.