Currently, there are supply chain problems in many areas that lead to the supply chain being interrupted. To prevent this from happening to you in the first place, we would like to show you today how you can identify the risks in advance and take the appropriate measures in good time. For this purpose, we have created an overview with the help of our partner iBanFirst*. First, we explain what a supply chain actually is. Then we go into the various risk factors. We also explain what you can do in advance to avoid the risk of an interrupted supply chain.
What is a supply chain?
Before we talk about how to avoid breaking a supply chain, we would like to explain what a supply chain actually is. The term supply chain describes the manufacturing and delivery process of a product. It is a very complex process. The dependence on logistics partners at home and abroad is correspondingly large. Since many Amazon sellers source goods from abroad, they face major problems if this chain is interrupted. Consequently, the supply chain must always be managed optimally, which can sometimes become very complicated. This is especially true if many steps of the supply chain are taken over by other companies. You will find out which risks nevertheless exist in the next section.
Key risk factors for the supply chain
A first risk arises when you lose track of the supply chain. In this case, you no longer have control, which in turn can lead to the supply chain being interrupted. However, the exchange with partner companies is very complex, especially if they are located abroad. If your deliveries are delayed, this also damages your own reputation and customer satisfaction.
Internal risks describe circumstances in your own company. There may be problems with the management of projects. In addition, difficulties sometimes arise with your own staff or the resources you use. Problems in the IT area can also lead to an interrupted supply chain. In addition, planning errors are a crucial risk factor. However, the internal risks mentioned are usually easier to master than external risks. One way to get better organised is to use project management software. Meistertask helps you to plan all internal tasks, assign them to employees and monitor the entire process. You can find more information in this article.
External risks include non-existent suppliers or bad suppliers. Non-transparent payments in foreign currencies can also become a risk factor. In addition, payment terms can always throw a spanner in the works. Other risks include problems with delivery times and a lack of or poor quality control. In contrast to internal risks, control is also more difficult. One way to make payments more manageable is to use the services of iBanFirst. For more details, you can read about the full range of services in this article.
Optimise project management
Risks caused by poor project management are particularly common. You should therefore make sure that your staff are up to the tasks they are assigned. Furthermore, those who lead the projects should have sufficient knowledge in the field of project management. In addition, they should have knowledge of problems that may arise. The supply chain should be worked out in such a way that you cannot lose track of it in the first place. It is also advisable to know the suppliers well and to ensure optimal business conditions. This also includes knowledge about the procedures in the supply process of your respective partners.
In the area of IT, you should ensure that your computer programmes are up to the technical challenges. It is also advisable to install good security programmes. Accordingly, you should frequently check whether you find vulnerabilities of any kind. In addition, you should encourage your employees to recognise risks themselves.
Problems with capacity
Another problem can be the lack of capacity of partner companies. After all, if demand changes quickly and you suddenly want to sell a large number of items, it is extremely inconvenient if there is not enough capacity. As a result, you should make sure that you can assign several suppliers to handle this case.
With regard to suppliers, you should make sure that the factors of cost, quality and delivery time meet your expectations. You should therefore always give feedback to indicate to the suppliers whether you are satisfied. Furthermore, you should keep an eye on different competitors in order to understand whether you yourself are operating optimally.
New regulations and circumstances
Problems that you cannot influence yourself sometimes arise due to external circumstances and regulations. Accordingly, you should keep yourself well informed about the current legal situation and geopolitical developments. This applies to all regions in which you work with partner companies.
Poor payment tracking
Supply chain risks also arise from not being able to track where your money is at any given time. Among other things, this can cause lasting damage to the relationship with your supply partners. Consequently, you should coordinate and inform each other as much as possible. You should also make sure that you use a reliable payment service provider.
At this point we have a savings tip for you: With our link* you can carry out transactions in foreign currencies free of charge for the first two months after opening an account with iBanFirst. So take a closer look at the offer!
Measures to ensure your supply chain is not interrupted
Finally, we would like to summarise what measures you can take to ensure that your supply chain is not interrupted. Firstly, you should recognise your own weak points and rectify them if possible. In addition, you should identify possible failures in advance. You can ensure this through regular quality controls. In addition, you can develop a so-called “business continuity plan” in advance, which includes all risk factors.
That was our overview of the risks and related measures to avoid disrupting your supply chain. Do you have any further questions about iBanFirst or need other support in your online business? Then feel free to contact us. We are always ready to help and advise you. Feel free to send us a message – without obligation, of course.
We look forward to hearing from you.