The Gift In This Supply Chain Chaos

Who ever thought that Supply Chain topics would be so ubiquitous in the media? Supply Chain, something that often required an explanation in social settings, now seems like common knowledge. Each day, as we get deeper into the peak selling season for many companies, we hear about new shortages, constraints, delays, and complications- the list is far reaching and at times surprising: aluminum cans, warehouse space, cream cheese, urea (please excuse putting those last two next to each other), and the list continues to grow.

The Washington Post recently reported that the CEO's of Walmart, Amazon, Kroger and others are being required to share their Supply Chain plans with the POTUS(!).... I can only imagine the data compiling and analyzing happening at those companies right now.

But here's the thing- this is actually a gift ('this' being the mess in which the Supply Chain is currently immersed). Like so many 'blessings in disguise' this is an unusually opportune time to review all aspects of a business's Supply Chain and see more clearly than ever before where the weaknesses are. While there are many analogies that could be fun to use here- let's think about it like this:

Let's say you have a large bucket that usually you only fill to about 1/3 of the way. There were a couple of leaks that would pop up periodically but not enough to really impact your use of the bucket. Then one day you suddenly need to fill the bucket all the way up. Suddenly you see that you have a lot of leaks and some very large holes- everywhere- and you can't keep the amount you need in the bucket. And now there are SO many holes and leaks that your Team is suddenly overwhelmed trying to fill each one-- but more keep showing up. It starts to seem like you need an entirely new Team just to focus on filling the holes.

Sounds like a party, right?

One of the core functions of a business’s Supply Chain is to manage and mitigate risk and if it's not at all possible to resolve- to communicate the risk. How does one mitigate risk when it keeps popping up in places where before you never had issues?

Here's where the gift part comes in- before, you would have never had the opportunity to see in one glaring moment where ALL the issues (current and potential) in your Supply Chain are. This is a chance to see those risks highlighted in Day-Glo paint and emphasized for you and your Team.

Single sourced on your core items? Time to find back up.

Formulations tied to hard to reach chemicals brought in from overseas? Time to have alternate ingredients and seek a source closer to your demand.

Process and tools requiring too much manual or restrictive work to get the job done? Time to find a new structure and revamp your system support for your Supply Chain.

Demand continues to outpace your plan? Time to enhance your stocking strategies and refine those forecasts.

Look honestly and bluntly at what you and your Team are facing and find those solutions together.

This is a chance to make your Supply Chain disruption-proof. Don't waste it!