Our 5 tips for managing a disruption in the supply chain

Routing problems, a lack of goods, an interruption of deliveries, technical malfunctions, a change in business model… The supply chain is inevitably subject to many hazards, as the health crisis has proved. Whether voluntary or not, these disruptions must be managed quickly and effectively to prevent any risks and harmful consequences.

 

But then, how do you manage these disruptions to keep the supply chain flowing and continuous? Here are our 5 tips.

 

1. Anticipate risks and disruptions

Above all, it is essential to anticipate any possible disruption in order to control, as best as possible, the impacts related to these disruptions.

It will therefore be necessary to identify potential threats and risks, whether they are logistical (breakdowns, product shortages, etc.), human (lack of staff, decrease in commitment, etc.), IT (cyberattacks), which can generate disruptions in the proper functioning of the supply chain.

This must involve a prior analysis of the existing situation (processes, assets, resources, means, etc.), and by developing an emergency plan and protocols, in order to provide an appropriate response to each case envisaged. These proactive actions can also make it possible to measure the impacts and to put in place appropriate resources to respond to these disruptions (a stock reserve, a budget dedicated to contingency management, an alternative list of suppliers, etc.).

Here are some of the disruptions in the supply chain that the company can anticipate:

• Difficulties in delivery
• Supply difficulties
• Interruption of deliveries
• failures at suppliers, carriers, distributors, manufacturers or other stakeholders
• Shortages of raw materials
• A sudden reduction in the number of employees
• cash flow problems
• changes in demand, needs and consumption habits
• …

 

2. Ensure close communication between stakeholders

Regardless of the disruption that occurs, it is essential to ensure close and transparent communication between the various stakeholders at all times.

Suppliers, producers, business partners, manufacturers, customers, employees… All these actors must be informed of the situation, its evolution and the impact on them.

Siloed internal communication will make it possible to involve employees in the management of this disruption and will promote initiative, mutual aid and collective intelligence.

 

3. Control the impact of disruption and ensure flow management

Supply chain managers must also make it a point of honour to manage flows during this transition period (product and material flows; information flows; financial flows, etc.) in order to preserve business continuity and control, as much as possible, the impact of these upheavals. In particular, a rigorous inventory of stocks and available resources must be carried out to ensure the fluidity of processes and ensure the continuity of the supply chain.

 

4. Renewing the traditional supply chain model

This disruption should also be seen as an opportunity to improve the existing model and innovate to increase business agility. Supply chain managers and managers will be able to take advantage of this disruption to implement digital tools and new technologies: AI, big data, production management software, ERP, WMS…

Indeed, it is essential to evolve the supply chain in response to disruptions to improve its resilience, as demonstrated by the Covid-19 crisis, which has lifted the veil on the fragility of the traditional supply chain model.

The integration of innovative tools is essential to overcome the lack of flexibility and agility, to optimize flows, modernize processes and strengthen connectivity between the different players.

 

5. Get support

Whether it is to manage the impact of a logistical disruption jeopardizing the stability of the business or to pilot the implementation of a new disruptive model, calling on an external service provider, such as an interim manager, can be very beneficial.

At WAYDEN, we have a community of more than 8,000 highly qualified interim managers with more than 20 years of experience and experience in crisis management, emergency situations and large-scale projects.

We are able to mobilize a logistics specialist, whose profile, expertise and interpersonal skills are aligned with your needs and the project.

Operational as soon as he arrives in the company, he will be able to activate the necessary levers to manage the situation, control the impact of disruption and strengthen the resilience of the supply chain.