Ever since the pandemic paralyzed the world economy, global supply chains suffered severe hardships as a result of temporary trade barriers and restrictions on the movement of goods and services across the world. The global economy's shutdown revealed flaws in the warehouse fulfilment and supply chains of businesses all over the world as a result of the supply shock that began in China in February and the demand crisis that followed.

The unprecedented surge in global shipping costs also contributed to supply chain disruptions. The average global cost of shipping a container increased from $1,362 USD in November 2019 to $9,628 USD in February 2022, according to the Global Container Freight Index.

In order to figure out various ways to overcome supply chain disruptions, this blog will further discuss all the major aspects of the supply chain and the different phases of the supply chain crisis.

What is a Supply Chain?

Before preparing how to handle disruptions to the supply chain, it is vital to understand what it is.

  • A supply chain is typically a network of individuals and organisations responsible for producing and distributing a good or service.
  • Vendors, producers, modes of transportation, warehouses, distribution hubs, and retailers are examples of supply chain components.
  • Product development, operations, finance, customer support, distribution, and marketing are just a few examples of supply chain functions.
  • Faster and less expensive supply chains are always efficient.

Dealing with Supply Chain Crisis in 5 phases

By breaking the problem down into five manageable stages, you can help your firm get through a supply chain management crisis.

1. Prepare before the crisis hit

Supply chain mapping is necessary to overcome supply chain interruption since it becomes crucial during a real crisis.

  • Analyze the supply chain you currently have
  • Know the difference between genuine demand and last-minute purchases
  • Find the areas where disruptions are most likely to occur for alternate choices
  • Test the resilience of your supply chain

2. Observing the crisis

You should be able to create a set of warning signs indicating a supply chain crisis using data forecasting. If you don't genuinely see a problem, you can't address it. You will have more time to respond if you get more advance warnings. 

3. Surviving

Sometimes making split-second judgments is something you're not used to when managing supply chain interruptions.

  • Find out about new resource and personnel action plans
  • Make the most of your resources
  • Evaluate the governance procedures at your organisation

4. Regaining Your Balance

  • Don't count on your rehabilitation strategy to get back to where you were before
  • Every step of your procedures should be revised to account for the new world

5. Getting back into competition

Any crisis may end up being an opportunity to innovate your company's operations and supply chains.

  • Plan the future impact of your organisation by applying what you have learned
  • Determine how long you intend to compete in this new world
  • Make sure your business doesn't wait too long to adapt

Three Points on How to Overcome Supply Chain Disruptions

While disruptions in the supply chain can be caused by a variety of factors - from natural disasters to political instability - there are steps that companies can take to minimize the impact of these disruptions on their business: 

1.One of the most important things that companies can do to protect themselves from supply chain disruptions is to diversify their supplier base. Having multiple suppliers for each component of your product can help ensure that if one supplier is unable to deliver, you have others that can pick up the slack. This not only reduces the impact of a disruption on your business but also gives you more bargaining power when negotiating prices with suppliers.

2. Another important step that companies can take to mitigate the impact of supply chain disruptions is to build up inventory. This buffer can help keep your business running in the event of a disruption, and it can also give you more flexibility when it comes to pricing and delivery.

3. Finally, companies should also have a plan in place for how to deal with disruptions when they do occur. This plan should include steps for quickly identifying and addressing the cause of the disruption, as well as contingency plans for keeping your business running in the meantime. By being prepared for disruptions, you can minimize their impact on your business and keep your operations running smoothly.

Supply chain disruptions can have a major impact on businesses, but there are steps that companies can take to reduce the risk of these disruptions. By diversifying their supplier base, building up inventory, and having a plan in place for dealing with disruptions, companies can protect themselves from the worst effects of these disruptions.

Conclusion 

Modern world economies will continue to experience supply chain disruption time and again due to ongoing international happenings. Understanding how to run your company through one enables you to recover more quickly, and maintaining a robust supply chain is the only way to successful warehouse fulfilment for your e-commerce business.

In order to update your e-commerce logistics with smart warehousing solutions, you can collaborate with some of the leading shipping solution providers in the business, such as NimbusPost, which offers highly integrated logistics software solutions to small and large-scale businesses across the country with its reliable warehousing and fulfilment services.