How can businesses protect themselves against supply issues?

There’s been so much in the news lately about stock not reaching its destination or a complete lack of supply of some items. From Brexit red tape and paperwork to huge ships blocking supply routes, to a shortage of drivers when goods do reach our shores, there’s been one hurdle after another that businesses have had to contend with.

Supply chain upheaval is likely to continue well into next year, through one reason or another. So, what can businesses do to relieve the pressure?

Spread your wings

It’s probably common sense, when you can’t get hold of items from one place, to look elsewhere. There’s a huge drive to buy from local companies at the moment, given the problems within distribution. However, whilst this will solve one problem, it may spark others, e.g. a rise in prices, which, eventually, will have to be passed on to the customer and which could affect your competitiveness.

China has made itself the price prince of the globe, and we have perhaps come to rely on their manufacturing too much. In the short term, it may well be more expensive to source items from another country, but from a political point of view, this could be a good move if China takes its bat home completely. Who knows what lies in wait around the corner, concerning the politics of other countries—such as Russia or America?

Having suppliers in more than one country is a good move, logistically. Don’t just look at sourcing elsewhere the one or two products you’re in desperate need of, but all of them. Knowing you can find all the elements of what you offer elsewhere, even if they are of a cheaper-but-perhaps-slightly-less-desirable-quality, may allow you to claw back some margin if you’re forced into purchasing one of them at a higher price. Nothing has to be set in stone, and this could be an effective short-term solution.

Don’t put all your eggs in one basket. Research second, third, fourth and fifth options for every aspect of your product and packaging, and vary where they originate from, too.