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Supply Chain Risk Mitigation Strategies

Livia Jenvey |  Feb 22, 2020

For manufacturing or distribution companies, if you're looking for easy wins to reduce costs within your operations, having a strategy to reduce supply chain risk will help you get this.

The most significant area that can cripple a business is risks to the supply chain. These risks can cost a company significantly in both the short-term and long-term.

This is why it's crucial to have risk mitigation strategies to prevent costly supply chain risks from happening.

Many companies learned the hard way in 2020, the negative financial effects of not having a supply chain risk mitigation strategy in place. With significant delays experienced with delivery ports closed during the 2020 pandemic, many businesses were hit hard financially by the long delivery delays in transporting goods.

What was evident with the world pandemic was aspects of your supply chain you have no control over. This is why having a strategy to mitigate those things you have no control over in your supply chain can mean the difference in preventing significant financial setbacks.

Creating a mitigation plan for your supply chain starts with understanding where you don't have control.

Look at all aspects of your supply chain from start to finish: outline which parts you have 100% control, 50% control, and 10% control.

Then, build back-up plans that can be implemented quickly and swiftly if you ever face these uncontrollable situations.

Use this as your strategy today to help prepare your organization to handle when you may face something you don't have control over in your supply chain.

Doing this today will make the difference between you continuing to gain income with ease or hit some significant financial setbacks, both in the short-term and long-term.

To learn more about how Jenvey Consulting can help you create a strategy to mitigate risk in your operational supply chain.  Schedule a call with one of our team members today.

 

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