What does a reliable supply chain look like?

Read Time: 4-minutes

Let’s talk a little bit more about reliability this week, and how it can help your business run more smoothly. Without it, you face delays, higher costs, ultimately unhappy customers, and lower profits.

My major goal when working with clients is to help them gain complete supply chain control. To build a reliable, ethical, and sustainable supply chain, and be confident in it. We achieve that through the CLEAN Framework.

Our supply chains have been under real scrutiny the last few years – COVID, the red sea crisis, the key bridge collapse – and it’s really tested how reliable our supply chains really are. Coupled with the fact consumers are more focused on responsible consumption than ever before.

So, on top of fighting fires, we’ve got to find ways to be more sustainable, through greener chemistry, lower emissions, elimination of waste, recyclable packaging, green energy usage, and so on as well!

I suspect most feel a little overwhelmed about the sheer volume of work they think will go into it.

Today I’ll talk about:

1. Good Communication

2. Managing Risks Effectively

3. Building Strong Supplier Relationships

4. Diversifying Globally

5. Understanding Market Trends

By starting to implement some of these things, you’ll begin boosting your reliability, and it’s not major overhaul.

"The single biggest problem in communication is the illusion that it has taken place." – George Bernard Shaw

Good Communication

It’s really the foundation for building a reliable supply chain. When everyone communicates well, problems are solved quickly. Keeping all parties informed and making sure everyone understands the expectations and limitations throughout is crucial.

Do you need a daily check in? A weekly check in? Are there major milestones? Is there a deadline which MUST be met?

Risk Management

Of course, risks are always present, and we can’t account for everything. We can, however, identify some potential risks, and have backup plans in place to deal with them. This could be anything from natural disasters to supplier issues.

Build in risk mitigation through supplier choice, maintaining safety stock at home, with suppliers, and/or with 3rd parties.

Regularly review and update your risk management strategies to adapt to changing conditions and new threats.

Building Strong Supplier Relationships

Work closely with your suppliers and really treat them as partners. Trust and collaboration lead to better deals and a more reliable supply chain.

You’ve got to negotiate with a win-win mindset, in an effort to build mutually beneficial relationships. Ensuring these relationships are transparent and honest.

Regular meetings and performance reviews with suppliers can create a collaborative environment where both parties work towards common goals and continuous improvement.

Diversifying Globally

Having multiple suppliers across the globe can protect your supply chain from regional disruptions. Ideally, have one supplier from the East, one from the West, and one local, a major goal in the CLEAN framework.

This diversification provides stability and flexibility. By spreading your supply base, you can mitigate risks associated with geopolitical issues, natural disasters, or regional economic fluctuations.

Ensure that all suppliers meet your quality standards and have contingency plans in place to switch between suppliers seamlessly if needed.

Understanding Market Trends

The markets move slowly day-to-day but massively week-to-week and month-to-month. Stay ahead by immersing yourself in market trends.

Understanding key feedstocks and their impact on your raw materials will help you anticipate changes and adjust accordingly.

This proactive approach allows you to make informed decisions about purchasing, stocking, and pricing. Regularly engage with industry reports, market analyses, and supplier insights to keep your knowledge up-to-date and your strategies relevant.

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So, there you have it.

A reliable supply chain is one with multiple sources globally, with honest and transparent supply chains, regular communication between all involved, and a key eye on global trends.

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Thanks for reading, and see you next week.

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Whenever you’re ready, there are 3 ways I can help you:

1. Take the CLEAN Scorecard - test your supply chain. In less than 3-minutes you’ll receive a free personalised report detailing areas where you are strong or weak, and ways you can improve.

2. Follow my YouTube series introducing the CLEAN Framework - learn how to build reliable, ethical, and sustainable supply chains.

3. Book a 15-minute introductory call to see if we would be right to work together.