Businesses of all sizes faced immense challenges during the COVID-19 pandemic due to disruptions in the global supply chain. Even though the pandemic itself has waned, the pressures on the supply chain are still present, according to Everest Business Funding.
In response to these ongoing challenges, small businesses are coming up with creative ways to be prepared to weather the storm. Here are some strategies that small enterprises can take to build resilience in 2024 so they can mitigate supply chain risks and maintain operational continuity.
Diversify Suppliers
Diversification is a highly-touted concept in the investment sector, but it should also apply to supply chain management. The theory is that you should never put all your eggs in one basket, so to speak, so if that one basket breaks, all your eggs don’t, too.
When you work with multiple suppliers, you are protecting your company against risks should one of your suppliers experience a snag. If that were to happen, your entire operation wouldn’t come to a standstill as you wait for that supplier to address its delays.
Diversifying suppliers also allows you to shift certain production from one company to another should a supplier not be able to deliver essential goods, allowing you to continue operations even if they can’t.
Invest in Technology
Many technological resources are available to all companies nowadays at a relatively affordable price. These technologies pay for themselves many times over by giving you insights into various aspects of your business that would be challenging to get manually.
Inventory management technology, for instance, can help leaders at your company consistently see where holdups might be, whether you are well stocked or need extra products, and keep things moving at all times.
This type of technology is essential today, as even a small hiccup in inventory management can result in a monumental problem.
Harness the Power of Data
Data can give you visibility into all different aspects of your business on a real-time basis. You can install tracking software and sensors that allow you to monitor your shipping times, delivery schedules, and inventory levels.
By harnessing the power of your data, you can identify any potential supply chain bottlenecks before it’s too late, allowing you to come up with a contingency plan.
Data analytics can also help small businesses forecast future demand, which helps avoid having too much or too little inventory on hand, for instance.
Conduct Regular Audits
Everest Business Funding says that one of the best ways small businesses can build resilience in 2024 is to conduct regular vulnerability audits. This allows businesses to identify any potential supply chain weakness while also assessing the potential disruptions it could cause.
These audits should include evaluating the performance and setup of your internal inventory management and logistics, for example, and your overall supplier network.
The results of these audits can provide valuable insights into what you might need to do to mitigate potential risks, including contracting with additional suppliers, creating alternative logistics routes, or adjusting your stock levels.
About Everest Business Funding
Everest Business Funding provides alternative finance options and revenue-based funding to small business owners. They serve a diverse pool of businesses, from healthcare to retail, to help them obtain working capital to grow, buy inventory, launch marketing campaigns, or hire staff. Everest Business Funding’s clients are treated with respect and receive high-quality guidance and service from its professionals.
