Risky Business? Risk Mitigation for Supply Chain

June 29, 2018 Karli Langner

Socio-economic issues. Driver shortages. Political challenges. Rising materials costs. Limited capacity. Natural disasters. Loss of a supplier, customer, trading partner. Labor shortages. Cargo theft. Poor quality materials. Mergers & Acquisitions.

The supply chain is subject to many activities that create risk within the supply chain, disrupting everything from production, manufacturing or distribution to losing a transportation mode, all of which can hurt your bottom line and make customers unhappy.

If disruptions in the supply chain occur, not only will customer satisfaction and profits be hurt, but you can also experience:

  • Out-of-stocks In inventory, which means you can’t fill orders, which can delay jobs
  • Production delays, which means your customers can’t get the products they need to complete a job
  • Loss of shareholder value
  • Reduced sales and loss of market share
  • Damaged company reputation

The improving economy has significantly increased construction activity, which has put additional pressure on the availability of materials, equipment and skilled labor. Most construction projects have a strict time line that must be met. When something goes wrong or a supplier can’t deliver the right materials or equipment, an entire project can be thrown off schedule.

What can you do to mitigate risk in your business? Give your supply chain a health check by analyzing:

  • The stability of your suppliers and subcontractors and the impact their failure would have on your business
  • What would happen to your business if you lost a production facility or transportation mode
  • Safety procedures at job sites to ensure worker safety
  • Raw material providers and the challenge to your business if they couldn’t supply the raw materials you need on time in the right amount

Understand in detail how disruptions and supply chain risks can affect your heavy building materials business, will lead to risk mitigation steps that should be put in place so that you keep your business operating.

supplyCONNECT is Command Alkon's solution to reduce disruption in your supply chain.  Contact us to learn more about how this product can transform your business!

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