COVID-19 has caused an unprecedented crisis in the world. Uncertainty over the Supply Chain reached unbelievable levels, with sales being unpredictable, some factories closing or stopping production.
The smartest way out of this crisis is to act quickly, decisively and effectively. We have listed a few steps that we think can help you in this difficult process.
UNPREDICTABLE SUPPLY AND DEMAND CURVE
After the global epidemic we lived in, fear took over the whole world. As we all observed during this uncertain period, many companies either decided to shut down (temporarily) or experience significant problems in product supply.
At the same time, sales became erratic. As supermarket sales reached their peak, we observed that the “catering” industry is slowly disappearing as a result of this agglomeration. As a result, we can see that the turnover of other companies is also decreasing.
FAST AND EFFICIENT DECISION MAKING
As mentioned above, the decision mechanisms monitored in normal time are not appropriate to respond to unforeseen situations. The reason for this is the important stock decisions taken after weeks of discussions; these days is done in a period of 15 to 30 minutes.
In addition, the fact that everyone has to work from home can sometimes prolong the reconciliation process between departments and make it difficult.
Now, in order to survive, companies have to make and implement decisions much faster than the order they are used to. Therefore, the people who make these decisions such as inventory management companies in India when necessary have a key role in the company. Supply Chain structure should be transformed into an effective chain of command.
If you don’t want to outsource this work, you can go according to the following steps:
Step 1: Set your priorities right
In the first step, determine which products are more important to the company or which products are more affected by adverse conditions. For example, which are A-class products or which products are in danger of famine?
What are the factors that cost you the most money or reduce your profitability? Which products suddenly started to be sold less? So, can products with low sales lead to excess stock risk? Or which products are selling more than before and have high future sales potential?
Step 2: Protect your stock
If you’ve identified products that are in shortage, make sure they are going to the right customer group. For example, you need to make sure that A-class products go to the right customer group! Although this sounds simple, it is extremely difficult to apply at times as we have.
Therefore, all departments should be informed about this situation and act on a case-by-case basis. Salespeople may need to know what products they are allowed to sell, marketers may need to remove certain products from the online store- if needed- and store owners may need to take some products off the shelf.
Usually, different departments make such decisions, but the turnaround is the fast moving era. And this is why, you need to consult an inventory management firm to make things smooth.