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How to Prepare for a Supply Chain Disruption
Supply chain disruptions are becoming more common due to factors inflation, global events, staffing shortages, regulatory changes and unexpected shutdowns. These factors can put added pressure on companies and make careful planning even more important.
For companies that manufacture, distribute, and use chemicals, the impact can be even greater. A delay affects much more than a delivery schedule. It can disrupt production, create missed customer commitments, and put added pressure on the entire operation.
Determine Your Most Critical Shipments
The most important step in preparing for a supply chain disruption is identifying which shipments matter most to your operations. There are several factors to consider to figure out which shipments are the most vital.
You can start by identifying:
- Raw materials that could lead to a production shutdown if not delivered on time
- Customers who have strict delivery requirements
- Chemical with specialized handling/equipment
- Limited shipment options
- Difficult locations under severe weather
- Strict regulatory, storage, or safety requirements
- Delay-heavy routes
When you figure out your highest priority shipments, you can figure out a contingency plan around them.
Create Backup Transportation Options
A single chemical transportation option may not be enough when supply chain disruptions occur. That does not mean you need to use multiple carriers for every shipment, but you should identify where backup capacity may be necessary and have additional options available when needed. You’ll also need to consider specialized tank equipment, product compatibility, driver qualifications, requirements for loading, and any other operational factors.
Know Your Provider’s Capabilities
Chemical transport is more than just getting from point A to point B. When you have a provider, not only are they your carrier, but they should also be your logistics partner and have the experience and knowledge to communicate openly, be responsive, have the necessary equipment, and understand your needs.
A strong logistics partner is a problem solver that can work under pressure, adapt when disruptions occur, and quickly develop a plan to keep your product moving and minimize delays.
Have an Established Plan of Communication
Information becomes especially valuable during a disruption. Delays can create chain reactions across warehousing, production, purchasing, and customer service. The sooner the right people know what’s happening, the sooner they can respond. A strong logistics partner communicates issues early, helps manage the impact, and works quickly to develop an alternate plan that prevents further disruption.
Make Supply Chain Resilience a Regular Process
There’s never a constant in the chemical industry. Suppliers change. Volumes change. And Transportation changes. Knowing the variables and risks can allow you to review your process for vulnerabilities and strengths and where you can improve to ensure that no matter what happens with the supply chain.
Choose the Right Logistics Partner
In a world of uncertainty with the supply chain, world events, and weather patterns, it’s important to choose a transportation and logistics partner that has the experience, training, equipment, and knowledge of how to circumnavigate the issue and provide the necessary logistical insights to ensure that your products are delivered safely and on time.
When the time comes, you can look to All Chemical for support.