Supply chain disruption means there’s a lack of raw materials or goods to make final products, and it can happen for many reasons. From a natural disaster to a disease (like the recent COVID-19 pandemic) to a sudden shift in demand, there’s plenty that can throw off supply chains.
For example, a shortage can force prices up or result in a lower quality of the final product. If this continues for a long period, customers might stop buying from you, or may choose to buy from competitors. This can have a serious impact on business and brand reputation.
Another common cause of supply chain disruption is financial difficulties at a supplier. If one supplier has trouble paying its bills, it may have to cut back production or halt operations altogether. This can impact the whole supply chain, even if its own customers are unaffected by the change.
There are several ways to manage supply chain disruption and mitigate the effects, such as improving forecasting, diversifying sourcing, and building resilience. But, if you don’t have a plan in place, or it takes too long to implement, a company can face major financial impacts and damage its reputation.
It’s essential for businesses to have the tools and resources to manage supply chain disruption. That means having an experienced team on hand to help you navigate any crisis. Consider partnering with a group purchasing organization like Una to increase your buying power, save money and time on supplier management, and improve continuity of supply in times of scarcity.