Supply chain disruptions hit headline news a couple years back. It happened slowly and then all at once. Everything was cheaper for a spell as demand fell during COVID. Then, all at once, everything became more expensive as the supply of goods dried up post-COVID. Capacity had shrunk and has been rebuilding ever since.
Even now, factors like natural disasters and economic shifts, and unforeseen events can bring a well-oiled supply chain to a halt. The ripple effects of such disruptions can be devastating. What can businesses do to navigate these disruptions and maintain a competitive edge?
First you have to diagnose what type of disruption you’re experiencing. Here are some of the most common ones:
- Production Delays: If key components are unavailable, manufacturing processes can stall.
- Increased Raw Material Costs: Rushed shipping and sourcing of materials can significantly increase expenses, making it more difficult to pay for raw materials.
- Inefficiency from Scaling Up or Down: Your operations may be less efficient as you scramble to adapt to the changes in demand.
Once you know what type of disruption you’re experiencing, you need to hire or tap someone internally who can help you resolve the issue. We recommend using Temporary Operations agencies, or Temp-Ops. They’ve emerged in the post-COVID period as a valuable tool for businesses dealing with supply chain disruptions and other inventory-based problems. We like them because there are a few benefits of hiring fractionally vs. full time for operations:
1. Flexibility: Temp-Ops allow you to scale your workforce up or down as needed. When disruptions occur, you can quickly bring in extra hands to meet increased demand.
2. Specialized Skills: Temp-Ops often come with specialized skills and training, which can be a valuable resource when dealing with new or unexpected challenges.
3. Cost Efficiency: Hiring temporary staff can be more cost-effective than keeping a full-time team during disruptions. You only pay for the labor you need.
4. Reduced Risk: Temp-Ops can help you navigate uncertain times without making long-term employment commitments. This reduces financial risk.
5. Faster Response: Temporary workers can be onboarded swiftly, ensuring a rapid response to supply chain disruptions.
1. Build a Pool of Pre-Screened Talent before the disruption: Establish a network of pre-qualified temporary workers so you can quickly tap into the right resources when needed.
2. Cross-Train Full-Time Staff: Invest in cross-training your existing team so they can adapt to different roles during disruptions.
3. Outsource to Specialists: Partner with a Temp-Ops agency with experience in your industry to ensure you get the right skills and support for specific problems vs. general problems.
4. Let Them Help Create Contingency Plans: Develop contingency planning that outlines how your company will react to supply chain disruptions.
5. Let Them Help Build a Process Around Continuous Improvement: Regularly assess and optimize your strategy based on the lessons learned from previous disruptions, use specialists to help.
Supply chain disruptions are a reality, but by thinking strategically, you can navigate these challenges more effectively. By embracing flexibility, specialized skills, and cost-effective workforce solutions, you can turn disruptions into opportunities for growth and business resilience.
Bob's Bookkeepers is here to help you explore the benefits of Temp-Ops and develop a tailored strategy for your business. Contact us today to learn more about how our expertise can make a significant difference in your supply chain management during times of uncertainty.
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