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Managing Supply Chain Disruptions Post COVD-19

The COVID-19 pandemic has shaken the global economy and drastically altered the way we conduct business. Supply chains worldwide are experiencing considerable disruptions as the U.S. and other countries continue to shut down in an effort to contain the coronavirus. As a result, construction firms are experiencing longer delivery times on the materials and equipment they need, leading to job delays that could be costly.

Supply chain disruptions

Here are some tips for managing supply chain disruptions in your organization.

Understand your suppliers’ risks and capabilities

Understand the risks of your key suppliers and their ability to procure the materials you need​ on time. You may need to find alternative sources for necessary supplies. For example, if you have a part made in China that is seeing considerable time delays, it makes sense to source that material through a supplier in the U.S. if applicable.

In addition, your suppliers may have more capabilities than you realize. For example, a distributor might also offer fabrication and other more custom services that you can utilize when you have downtime due to job delays.

Prioritize product production

Use this period to get inventive. What materials do you have on stock or have access to that are in demand? Do you have the capacity to make a different product with your current operational inventory? Cash is king, especially in our current economy, so look for innovative ways to reduce your overhead.

Communicate with your suppliers and vendors

Have conversations in advance with your vendors and suppliers about expanding credit terms and payment schedules​. If you did not lock in prices, negotiate by getting volume discounts and buying more products from a single supplier​. Transparency is critical right now—be honest about your individual situation and see if you can come up with a plan that appeases both parties.

In the end, we really are all in this together. We can’t control supply chain disruptions caused by a pandemic, but we can think outside the box for sustainable solutions. If you need assistance or have questions or concerns, please reach out to us by calling 443-320-4101 or emailing us at info@hoffmancpas.com.

Author: Megan O’Donnell

This entry was posted on Friday, July 31st, 2020 at 2:56 pm. Both comments and pings are currently closed.