{"id":3349,"date":"2020-08-11T20:44:29","date_gmt":"2020-08-11T20:44:29","guid":{"rendered":"http:\/\/www.rtgsolutionsgroup.com\/?p=3349"},"modified":"2020-08-11T20:52:38","modified_gmt":"2020-08-11T20:52:38","slug":"reeling-from-supply-chain-disruption-heres-a-3-step-approach","status":"publish","type":"post","link":"https:\/\/www.rtgsolutionsgroup.com\/reeling-from-supply-chain-disruption-heres-a-3-step-approach\/","title":{"rendered":"Reeling from Supply Chain Disruption? Here\u2019s a 3 Step Approach"},"content":{"rendered":"<section class=\"wpb-content-wrapper\">[vc_row][vc_column width=&#8221;3\/4&#8243;][vc_single_image image=&#8221;3350&#8243; img_size=&#8221;1110&#215;500&#8243;][vc_column_text]<span style=\"font-weight: 400;\">Since the early days of COVID-19, companies across the globe have suffered massive supply chain disruption. This has resulted in an epidemic of unfulfilled orders, product shortages, inventory glut, operations headaches, as well as a dramatic impact on customers. But what if the coronavirus isn\u2019t all to blame for the supply chain dilemma?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Sure, these issues were certainly exacerbated by the pandemic. However, <\/span><a href=\"http:\/\/www.rtgsolutionsgroup.com\/supply-chain-consulting\/\"><span style=\"font-weight: 400;\">supply chain consultants<\/span><\/a><span style=\"font-weight: 400;\"> saw the writing on the wall long before coronavirus. In the past, experts have warned about the perils of mangled supply chains both within businesses and across all industries.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It might seem like COVID-19 catalyzed the global disruption in the flow of goods, especially if your company only started to face severe challenges mid-pandemic.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But the pandemic itself did not destroy our supply networks. Decades of widespread mismanagement did. The pandemic only revealed and worsened the state of global distribution.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So what can you do to recover from a sourcing and\/or distribution crisis? And how can you save your organization from a similar situation in the future?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Our top 3 industry insights to navigate &#8212; and avoid &#8212; supply chain disruptions are:<\/span><\/p>\n<ul>\n<li><strong><span style=\"font-size: 14pt;\">Use Enterprise Resource Planning (ERP) technology to its full potential<\/span><\/strong><\/li>\n<li><strong><span style=\"font-size: 14pt;\">Improve your vendor management protocol\u00a0<\/span><\/strong><\/li>\n<li><strong><span style=\"font-size: 14pt;\">Create a risk mitigation program <\/span><\/strong><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">So let\u2019s jump right into these strategies and why they matter.<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;1. Use Enterprise Resource Planning (ERP) Technology to its Full Potential&#8221; font_container=&#8221;tag:h3|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][vc_single_image image=&#8221;3351&#8243; img_size=&#8221;1110&#215;500&#8243;][vc_column_text]<a href=\"https:\/\/www.investopedia.com\/terms\/e\/erp.asp\"><span style=\"font-weight: 400;\">Enterprise Resource Planning (ERP)<\/span><\/a><span style=\"font-weight: 400;\"> tools are a category of software that support a wide array of business operations. They were originally devised to track and manage inventory. But today, they can automate and administer anything from accounting to sales.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The only problem with ERPs is organizations rarely use them to their full potential.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To be clear, most companies utilize ERPs in some form or another. But seldom do they leverage these tools to maximize supply chain efficiency.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before COVID-19, businesses could get away with this. They didn\u2019t need to rely on ERPs to report, track, and move inventory because they had boots on the ground. But in the era of social distancing and remote work, systems like ERPs have risen to the forefront as the key players in day-to-day operations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Where organizations used to be able to place their trust in staff, they are now forced to invest complete trust in their data systems. The result is companies who weren\u2019t using ERPs in a strategic manner now face all sorts of distribution and inventory calamities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That is why proper ERP utilization tops our list of tips to navigate supply chain disruptions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your organization struggles with things like sourcing, manufacturing, delivery, and procurement, you\u2019ll want to start with your ERP policy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Do you have an ERP? If so, what do you use it for? Do you have accountability measures that promote accurate reports? Are all employees trained on how to use the ERP to its full potential? Are your ERP procedures properly documented?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Depending on how you answered these questions, you\u2019ll want to re-think how your business utilizes its ERP. And if you decide to make changes, you will have to devise an air-tight implementation plan.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you put together a comprehensive roll-out plan, your ERP enhancements will actually solve your distribution problems, rather than create new challenges and fuel chaos.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At RTG Solutions Group, we specialize in technology implementation and supply chain consulting. Our experts partner with businesses to <\/span><a href=\"http:\/\/www.rtgsolutionsgroup.com\/9-priorities-for-conducting-a-needs-assessment\/\"><span style=\"font-weight: 400;\">assess their needs<\/span><\/a><span style=\"font-weight: 400;\"> and create technology implementation plans that set them on a path of continuous improvement.\u00a0<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;2. Improve your vendor management protocol&#8221; font_container=&#8221;tag:h3|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][vc_single_image image=&#8221;3353&#8243; img_size=&#8221;1110&#215;500&#8243;][vc_column_text]<span style=\"font-weight: 400;\">Aside from less-than-optimal ERP usage, another common pain point in corporate supply chains is vendor management policy. Improving your vendor management is one of the most important operational adjustments you can make to navigate supply chain disruptions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Similar to the ERP issue, most organizations did not have optimal vendor arrangements prior to COVID-19. While strong vendor management policies have always mattered in the business world, they\u2019ve become especially important under pandemic conditions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Why does vendor management matter so much?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Well, your company might internally do everything possible to maximize supply chain efficiency. You might make full use of your ERP, quality-check all inventory reports, mitigate risk, etc.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But if your partners don\u2019t do the same, then you can still end up in with chaos!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Whether or not vendor relations have driven your current supply chain woes, now is a great time to analyze and revise your vendor documentation and protocols.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To survive and avoid supply chain disruptions, your vendor contracts should stipulate policies that ensure transparency and performance. Quality control and accountability measures should be built into your contracts. And, most importantly, all parties should be well-informed of the contractual obligations.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/smallbusiness.chron.com\/justintime-method-31185.html\"><span style=\"font-weight: 400;\">Just In Time (JIT) Management<\/span><\/a><span style=\"font-weight: 400;\"> is a great example of smart vendor policy. In this inventory method, orders and deliveries are completed on an as-needed basis. The goals of this method are to <\/span><a href=\"http:\/\/www.rtgsolutionsgroup.com\/ways-to-cut-supply-chain-costs\/\"><span style=\"font-weight: 400;\">cut supply chain costs<\/span><\/a><span style=\"font-weight: 400;\">, increase efficiency, and decrease waste.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Not sure how to start a vendor policy analysis and redesign? RTG Solutions Group is here to help! Our supply chain experts can help you devise a smart, sustainable vendor strategy that gets you through the pandemic and beyond.\u00a0<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;3. Create a risk mitigation plan&#8221; font_container=&#8221;tag:h3|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][vc_single_image image=&#8221;3352&#8243; img_size=&#8221;1110&#215;500&#8243;][vc_column_text]<span style=\"font-weight: 400;\">No one could have predicted just where the COVID-19 outbreak would take the business world. Though there\u2019s no magic 8-ball to tell the future, your company can still be prepared for a crisis.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The practice of risk mitigation encompasses a variety of strategies intended to improve your organization\u2019s ability to overcome obstacles.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, the coronavirus pandemic has highlighted the importance of portfolio diversity as a means for risk reduction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One straightforward way to reduce risk in the supply chain is to move away from sole-source contracts. Your organization should diversify its vendor portfolio to include more than one viable source for any given resource.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This guarantees that, in the case that one source becomes unviable for one reason or another, your organization has a back-up provider lined up. In turn, this reduces the likelihood of a supply chain disaster on account of a compromised vendor.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Aside from diversifying the portfolio, a fantastic operational change to reduce risk management is to actually hold solution-oriented risk management meetings.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In these meetings, team members should brainstorm plausible scenarios that could impact production and distribution. Each prediction should be matched with a contingency plan and funding allocation that is ready to go at a moment\u2019s notice.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Interested in other ways to prepare your organization for a supply chain emergency? Check out our blog on <\/span><a href=\"http:\/\/www.rtgsolutionsgroup.com\/the-importance-of-business-process-documentation-in-times-of-crisis\/\"><span style=\"font-weight: 400;\">The Importance of Business Process Documentation in Times of Crisis<\/span><\/a><span style=\"font-weight: 400;\">!\u00a0<\/span>[\/vc_column_text][vc_custom_heading text=&#8221;CONCLUSION&#8221; font_container=&#8221;tag:h3|text_align:left&#8221; use_theme_fonts=&#8221;yes&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Global and internal supply chains consist of complex, interconnected networks. These networks must work in perfect synergy in order to maintain the flow of goods and services within and across businesses. However, decades of inadequate supply chain operations reached a boiling point with the COVID-19 pandemic.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With these three changes, your organization can make it through the pandemic and steer away from future supply chain disruption.\u00a0<\/span><span style=\"font-weight: 400;\">Need help managing your business through a supply chain disruption? <\/span><a href=\"http:\/\/www.rtgsolutionsgroup.com\/contact-us\/\"><span style=\"font-weight: 400;\">Contact us<\/span><\/a><span style=\"font-weight: 400;\"> today to learn how RTG Solutions Group can help you reach your goals. <\/span>[\/vc_column_text][vc_empty_space][\/vc_column][vc_column width=&#8221;1\/4&#8243;][stm_sidebar sidebar=&#8221;311&#8243;][\/vc_column][\/vc_row][vc_row full_width=&#8221;stretch_row&#8221; el_class=&#8221;third_bg_color&#8221; css=&#8221;.vc_custom_1566094721980{margin-bottom: -60px !important;background-color: #308c36 !important;}&#8221;][vc_column][vc_cta h2=&#8221;Experiencing disruption in your supply chain? We can help.&#8221; h2_font_container=&#8221;font_size:20px|color:%23ffffff|line_height:24px&#8221; h2_use_theme_fonts=&#8221;yes&#8221; shape=&#8221;square&#8221; style=&#8221;custom&#8221; add_button=&#8221;right&#8221; btn_title=&#8221;Call Us Today!&#8221; btn_style=&#8221;outline&#8221; btn_color=&#8221;white&#8221; btn_align=&#8221;right&#8221; btn_i_align=&#8221;right&#8221; btn_i_icon_fontawesome=&#8221;stm-phone6&#8243; use_custom_fonts_h2=&#8221;true&#8221; btn_button_block=&#8221;true&#8221; btn_add_icon=&#8221;true&#8221; el_class=&#8221;third_bg_color&#8221; css=&#8221;.vc_custom_1597168468548{margin-bottom: 0px !important;}&#8221; custom_background=&#8221;#308c36&#8243; custom_text=&#8221;#ffffff&#8221; btn_link=&#8221;url:https%3A%2F%2Fwww.rtgsolutionsgroup.com%2Fcontact-us%2F|title:Contact%20Us|target:%20_blank|&#8221;][\/vc_cta][\/vc_column][\/vc_row]\n<\/section>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column width=&#8221;3\/4&#8243;][vc_single_image image=&#8221;3350&#8243; img_size=&#8221;1110&#215;500&#8243;][vc_column_text]Since the early days of COVID-19, companies across the globe have suffered massive supply chain disruption. This has resulted in an epidemic of unfulfilled orders, product shortages, inventory glut, operations headaches, as well as a dramatic impact on customers. But what if the coronavirus isn\u2019t all to blame for the supply chain<\/p>\n","protected":false},"author":1,"featured_media":3350,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[106],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Reeling from supply chain disruption? Here\u2019s a 3 step approach<\/title>\n<meta name=\"description\" content=\"Companies across the globe have suffered massive supply chain disruption. 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