Managing Your Supply Chain in Difficult Times
Daniel Stanton
Mr. Supply Chain? | Supply Chain and Project Management | Over 3 Million Online Learners 丹尼尔·斯坦顿
Supply chain plans are built on assumptions about what will happen in the future, and these assumptions are usually based on past experience. In any event, it’s a good idea to have a supply chain plan for difficult times.
For example, if the transit time between one of your suppliers and one of your factories has always been 15 days in the past then you would assume that the transit time will be 15 days for future orders, too. This 15-day transit time will be used to determine when to send an order to that supplier so that it will arrive at your factory on time. But past performance is not a guarantee of future results.
Although we have to make assumptions in order to plan how a supply chain should perform, we need to deal with reality when it comes to managing the day-to-day operations. Think about the potential effects that any of the following events could have on your supply chain:
- A shipping container filled with raw materials for your product gets quarantined in a port for 30 days.
- One of your factories is closed because of an epidemic.
- A key supplier files for bankruptcy protection.
- A major customer unexpectedly cancels a huge order for your products.
- A new customer unexpectedly places a huge order for your products.
Each situation represents a scenario that supply chains around the world face every day, and your supply chain needs to be able to respond.
You need to understand a few basic principles to implement a risk management process that spans your supply chain:
? Read the rest of this article on dummies.com
? Buy the book on Amazon.com
#SupplyChain #SupplyChainManagement #Business #Leadership #Forecasting #ShipsAndShipping #Logistics #Transportation
Who is Mr. Supply Chain?
Daniel Stanton is a supply chain industry veteran and the best-selling author of Supply Chain Management For Dummies He is dedicated to empowering professionals through education and technology. His courses on LinkedIn Learning (formerly Lynda.com) have been viewed over 1 million times, and he's a frequent speaker at educational conferences and industry events.
Certified Teacher of Maths & Technology | University Lecturer | Books Writer | Generative AI | Educational Comunicator | Google Certified Educator Levels I & II | EX-International Certified Supply Chain PRO | History
4 年To know about #supplychain bits and pieces, within your business is a key part needed to move forward (not just in difficult times). In business you must ensure that you are not missing what have learnt in your past and catch the present information from market variables, to keep on delivering and enhancing your value proposition + be resilient, hence being able to deliver your business maximizing profit and taking care of customers and suppliers. A good #supplychain vision can help you to achieve this….and this book from Daniel Stanton is a good way to start learning on this matter and see how much #supplychain can do for your company P&L.