As conditions change daily for companies during the Coronavirus pandemic, these recent events both locally and globally have exposed a variety of challenges that supply chains across Australia have not previously experienced.
Capacity constraints, such as the reduced availability of supply, and price increases for international shipping are the most significant and immediate supply chain effects of the pandemic for Australian businesses importing from overseas.
In our latest blog we will discuss how companies can respond to the immediate change and suggest 4 ways of protecting their business from major disruption in the future.
Communication is key
It is vitally important that companies continue to communicate effectively with supply chain partners and consider establishing daily meetings with strategic suppliers to discuss options for securing an adequate supply of essential high-demand items.
Prepare for future overstocks
Now is the time to assess your stock and keep on top of fast-changing consumer demand. Anyone operating in the supply chain industry should be very careful to avoid the bullwhip effect. This is a supply chain term for what happens when extreme demand at point-of-sale for certain goods results in retailers over-ordering. This causes distributors to also over-order and manufacturers to over-produce. The result can be huge over-stocks of product that arrive after buyer demand has returned to normal.
Finding more baskets for your eggs
Even though Chinese manufacturing is starting to pick up again, businesses that relied heavily on sourcing from China for products may find their specialist manufacturers are no longer operating. Now is the time to research and start developing relationships with suppliers closer to home or in alternative countries.
Create a contingency plan
Companies should consider scenario-planning strategies, where different demand environments are considered across the entire supply chain. Individual companies should consider the biggest risks that face them during these times and should develop plans for both optimistic and conservative future situations
And that’s not all, let us take the hassle out of recruiting
Here at Brix Projects we understand what is required in each area of this sector, and we are totally in tune with the qualities, skills and capabilities required to shine in supply chain, warehousing and logistic roles.
If you are currently looking to fill positions during these difficult times why not get in touch with the team today on 1800 621 066, let us do the hard work of finding top talent for both permanent and contract roles, and short or long-term projects so that you can get back to running your business.
We never take shortcuts in our recruitment process. All our workforce have undergone a thorough phone screen, face-to-face interview, OH&S training and reference checking. We pride ourselves on the quality of our candidate and are already helping a number of companies across Sydney and Australia