According to research, 84% of customers will not return to a business after a poor delivery experience; 98% also believe that shipping influences brand loyalty. This means that if your company fails to solve supply chain management problems efficiently, you will lose many customers.
In this article, we will discuss six helpful ideas that you can use to tackle common supply chain issues.
Invest in a Supply Chain Service Management (SCSM) Solution
The first step in fixing supply chain issues is to change the way you manage your supply chain, and investing in a supply chain industry service management tool is an excellent way to do this. Traditional supply chains are chaotic–supply chain professionals wake up in the morning, take critical updates, learn about an issue, and then scramble to solve it. Companies are often unaware who will solve a particular problem, and by the time these things are done, some customers are already unhappy.
Supply chain service management tools prevent this from happening. They serve as a single source of truth for all supply chain-related issues, and help you identify and tackle them immediately after they arise. For example, suppose you are facing a late shipment–in this case, your transportation management system would trigger an SCSM event. This event contains all relevant information about the issue and alerts the supply chain logistics team, which can then prioritize and follow this issue until it is resolved. In addition, the SCSM will also alert the customer service team to streamline communication. All of this will allow you to identify an issue as soon as it arises and follow a predetermined workflow to solve it.
Over time, the SCSM tool can generate valuable insights about your supply chain, allowing you to take corrective actions to reduce the frequency of common issues.
Educate Your Employees About Supply Chain Risks
Another way to fix supply chain issues is to educate your employees about the risks involved in the supply chain, as most employees are unaware of the potential risks that can impact the supply chain. As a result, they are often caught off guard when an issue arises.
Educating your employees about common risks can help them be better prepared when a problem occurs. For example, you can provide training on risk management, supply chain disruptions, and other topics. In addition, you can create awareness campaigns to educate employees about the importance of supply chain management.
Avoid Relying on a Single Supplier
One of the most common mistakes companies make is to rely on a single supplier–if a single supplier experiences an issue, it can impact your entire business. This is especially true as we come out of the COVID-19 pandemic, as many suppliers still experience delays.
Instead, you should diversify your supplier base. This will help reduce the risks associated with relying on a single supplier, give you more negotiation power, and offer better overall prices.
Improve Communication With Your Suppliers
In many cases, supply chain issues are caused by a lack of communication between the various parties involved. For example, if your supplier is experiencing an issue, they may not communicate it to you in a timely manner. As a result, you may not be aware of the issue until it is too late.
To avoid this, you should establish clear lines of communication with your suppliers. This will help ensure everyone is on the same page and that issues are communicated as soon as they arise.
Do Not Oversell Your Products
Overselling is a common issue in the e-commerce world. In many cases, businesses will list more products on their website than they actually have in stock. This can lead to many problems, including backorders, customer dissatisfaction and loss of sales.
To avoid these issues, you should only list products on your website that you have in stock, and you should keep a close eye on your inventory levels and reorder products before they run out.
Have a Contingency Plan
Finally, you should always have a contingency plan in place to deal with supply chain disruptions. This plan should include alternative suppliers, routes, and transport methods, and you should also have a plan for how to communicate with your customers in the event of disruption. With a contingency plan, you can be prepared for anything that comes your way!