Can Technology Save You From Supply Chain Risks

 Every business owner wants to maximise their income and profit margins while simultaneously minimising the risk that is involved. Even the top companies detect their supply chain risks and develop strong strategies to eliminate the negative consequences. The recent COVID 19 pandemic had a negative impact on the supply chain of every business throughout the country. Even the supply of medical lifesaving drugs and oxygen were disrupted in the whole nation during the second wave of COVID 19.

The supply chain of any business can be disturbed due to a number of factors. However, nature is not the only factor that can disrupt your supply chain. The global economy crisis, political disorders, unexpected customer demands, shorter shelf life of products, latest technological innovations, terrorism, and numerous other factors can impact the supply chain of your business. However, having sufficient technology that can utilise data from your existing supply chain with reference to external market factors can help you in improving your company’s ability to plan market pricing strategies on the basis of the volatile nature of the market. Apart from determining the strategy, it is also important to be aware about the risks that are associated with your supply chain management system.

Determining the Associated Risks

Analysing the potential risks can be extremely difficult but beneficial at the same time. Being aware of the uncertainties can help you in preparing about the damage that is yet to be done. The top three supply chain risks are as follows:

Inventory Risks

Maintaining the right amount of inventory can be a challenging task at times. Falling short on inventory or having surplus inventory can both result in a problem at times for your business. The shortage of inventory can happen when there is a mismatch between the estimated values and the actual market demand. While having surplus inventory on the other hand, can turn out to be a liability and can block your finances. Apart from the external factors, an inventory risk can also be a result of the unforeseen internal supply chain disruptions. Businesses nowadays use technologies to keep track of the real time status of their inventory and are able to overcome such risks.

Original Source: Can Technology Save You From Supply Chain Risks