With supply lines growing longer and competition continually increasing, keeping a supply chain running efficiently requires a more complex strategy than ever before. Fluctuations in demand and regulatory protocol further muddy the waters when determining the best options available to mitigate risk. The current landscape requires a better business-value approach for any company with growth aspirations, or at the very least, looking to stay afloat.
Each business decision, especially during expansion efforts, requires meticulous attention paid so that only the most relevant and accurate information is guiding the way. What potential revenue stream contingency plans do you have in your back pocket in the event of an economic downturn to prevent the company from downturning along with it? How well has your payment process been audited throughout the supply chain to assure your company isn’t losing money due to easily correctable errors? How precisely are you assessing the total cost to serve to determine if fulfilling certain areas of demand are even profitable endeavors? And how well is your business prepared for changes in compliance so that you always stay eligible to meet demand?
The list of risk considerations in the supply chain can be overwhelming, however, what is even more overwhelming is letting them amplify by not being comprehensive enough in your strategy.