A robust supply chain helps ensure seamless continuity of business operations locally, nationally, and on a global scale. Proactive risk management requires the ability to mindfully analyze data, strategize, and offer adept solutions to quickly pivot and lessen dangers that could result in unwanted disruption, delays, and shortages. In this blog, we will examine four essential business practices and how they can help safeguard the supply chain.
- Deploy risk management intelligence – Supply chain risk management software can quickly pinpoint and assess real-time vulnerabilities, emerging market trends, and mitigate geopolitical supply shortages. From shipping and inventory concerns to demand fluctuations, the data offers agile solutions. In conjunction with this software, businesses must rely on the expertise of their team, too. Having a comprehensive back-up plan in place and possessing a risk-ready, quality mindset to manage any vulnerabilities and minimize their potential for disruption is key.
- Utilize strategic sourcing – Strategic sourcing, a system designed for procurement and supplier management, alleviates the reliance on one supplier and has shown to be a major catalyst for supply chain resiliency. Its impressive data-driven methods are recognized for maximizing efficiency and productivity and reducing supply chain roadblocks. Business leaders can make informed decisions by leveraging supply channels within a procurement cycle and easily identify and evaluate preferred suppliers to source the products, goods, and services they need.
- Build strong supplier relationships – In conjunction with strategic sourcing, the importance of building and cultivating relationships within your network of suppliers cannot be underestimated. Collaboration works best when you are surrounded by a network you know and trust. Having trusted suppliers who have proper safety protocols and proven contingency plans in place to protect the integrity of the supply chain adds peace of mind.
- Implement critical cybersecurity protocols – The entire supply chain must be proactive (instead of reactive) and demonstrate a culture that is vigilant against cyber threats. Here are three necessary cyber practices every organization should follow:
Train and educate your workforce – Employees are the best defense against cyber threats. A 2023 report from the Association of Supply Chain Management (ASCM) indicated that extra investments in employee training are effective in mitigating threats. From training videos to seminars, educate your team on the risks, how to spot them, and the proper procedures to report them.
Test the training – See what your workforce has learned from their cyber training. Both phishing (a common trick used by hackers to get a recipient to click on a malicious link) and smishing (a social engineering tactic that combines phishing with SMS text messages) are commonplace among hackers. Your cyber team should be sending frequent “test” emails or company-wide texts to gauge if your teams will take the bait. You can quickly evaluate what is working and areas that need improvement.
Use the latest software – Is your business utilizing the most up-to-date cybersecurity software? Are all security patches closed? If you don’t know, ask.
Optimize efficiency now and in the future
Supply chain resiliency requires ongoing monitoring and analysis, and a commitment to fostering relationships and embracing innovative technology. By leveraging industry best practices for mitigation strategies, organizations can successfully navigate and minimize the multitude of supply chain risks. Keep reading Kem Krest’s blog series. We will continue to explore additional measures to strengthen the supply chain.
About Kem Krest
Kem Krest, a certified minority business enterprise (MBE), is the nation’s leading provider of supply chain optimization solutions to automotive, powersports, and heavy-duty OEMs. Through our dedicated team members, lean operating system, and streamlined technology, Kem Krest ensures a resilient and uninterrupted supply chain for the programs we manage. Through customized end to end solutions that address every facet of the supply chain—from inventory management, fulfillment, warehousing, kitting, packaging, logistics, and transportation management, Kem Krest enables companies to increase operational efficiency, deliver superior customer and employee experiences, focus on growth initiatives, and achieve cost savings. Kem Krest partners with companies to virtualize their supply chains through a growing network of 12 facilities in the US and Canada, featuring 1.75M sq. ft. of warehouse space and 600+ full-time team members. For more information, please visit Kem Krest’s website at KemKrest.com.