Back in January, we began hearing murmurings from firms in the Far East that the coronavirus outbreak was disrupting supply chains. So much so, in fact, that the South Korean automaker giant Hyundai suspended production at its Seoul factory.
But as the weeks dragged on, the situation deteriorated further. Now, many eCommerce businesses are unable to get the stock that they need.
So what can be done? While no company is entirely immune to supply chain disruptions, there are ways to reduce costs and keep your production problems to a minimum. Here’s how.
Diversify Your Supply Chain
As COVID-19 spreads around the planet, we’re likely to see rolling lockdowns. Countries will sequentially shut down their economies as their respective epidemic peaks hit.
It makes sense, therefore, to diversify your supply chain so that you can continue sourcing stock, from some countries, even as others shut down. If the economy closes in one jurisdiction, you can ship from another using Global Warehouse Solutions.
Keep Dialogue Open With Your Supplies
Ensuring that channels of communication remain open with your suppliers is essential during a crisis like this. You want to know whether they can weather the storm, and how long it will be before they re-open. Pepper them with questions and try to get specific details concerning their current financial and logistical situation.
Stock More SKUs
Companies that only sell a few dozen SKUs are much more vulnerable if supplies dry up. It makes sense, therefore, to diversify the number of products you sell as it provides your customers with viable alternatives if some lines become unavailable.
If you implement these tips your business will experience more revenue and less risk.