If you are trying to establish a successful company, it is critical to think about the nature of your supply chain. If something happens to your supply chain, you will have a difficult time delivering for your customers. As a result, you need to take a closer look at some of the most common mistakes that are made during the supply chain planning process. Why do supply chains fail? Take a look at a few of the most common reasons why supply chains fall apart. Then, do everything you can to avoid these issues.
The Supply Chain Is Too Spread Out
One of the most common reasons why supply chains fail is that they are simply spread out too far. You need to make sure you keep your supply chain as tight as possible. If your supply chain is very spread out, then there are more opportunities for something to go wrong. When possible, try to work with suppliers that are in the local area. That way, you do not have to worry about geography playing a role in disrupting your supply chain. Furthermore, you will have an easier time getting supplies delivered to your company on time. If you keep your suppliers relatively close to home, there are fewer opportunities for something to go wrong. That way, your company will receive its supplies on time.
You Are Only Using One Supplier
Another reason why supply chains fall apart is that you are only using a single supplier. If you have a supplier that you really like, then it makes sense you want to stick with that supplier. Unfortunately, this can also magnify your risk. If something happens to that single supplier, then your company is going to have a hard time meeting the needs of your customers. Even though it might be more difficult to manage, you do need to work with more than one supplier. That way, if something happens to one supplier, you still have other suppliers that can deliver for your company. Talk to multiple suppliers and see what you have to do to get contracts put in place. That way, you reduce your chances of something happening.
You Set Your Deadlines Too Tight
Finally, one of the reasons why your supply chain could fail is that your deadlines are set too tight. Ideally, your goods will be delivered on time, every time. Unfortunately, this is unlikely to happen. Accidents are going to take place from time to time. Issues could develop with your materials. Regulations in certain locations could change. That is why you need to give yourself a bit of leeway. You need to give your suppliers a day or two of grace. That way, if they hit traffic, if there is bad weather, or if something happens with your materials, you do not miss deadlines for your customers. Give yourself some flexibility on your deadlines.
Work with the Right Suppliers
Ultimately, there are a lot of reasons why supply chains fall apart. That is why it is important for you to think carefully about how you are going to set up your supply chain. You need to think carefully about your deadlines and consider weather issues that could develop. Then, you may want to hedge your risks by investing in multiple suppliers. Try to keep your supply chain as tight as possible. That way, you do not have to worry about your supply chain falling apart. If you establish a strong supply chain, you will have an easier time meeting the expectations of your customers.