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Avoiding shortages

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  • Avoiding shortages

    When I had my retailing business, I became friends with one of our suppliers. The company regularly imports their supplies from China and Japan. But when there is an expected shortage of supplies due to the fault of the supplier, they make an emergency purchase from Thailand. The company president said that a good management of a supply chain business has a fallback when something goes wrong with the suppliers.

  • #2
    Re: Avoiding shortages

    Right, a backup plan is always needed. That's why, for instance, it's good to have a spare tire, emergency money, and insurance. Note, you never know when things will go wrong.

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    • #3
      Re: Avoiding shortages

      Always have a backup so the clients, the money and supplies don't get cut out.

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      • #4
        Re: Avoiding shortages

        A business has to face so many ups and downs. Profit and loss is a part of a business. It require a proper strategy to execute. If you are in a supply chain business, then there are so many things you need to focus on i.e. business relationship management, customer relationship management and supplier relationship management etc. in order to reduce these kinds of risks. Having a backup plan is also a good idea but i will recommend while signing agreements mention all the terms and conditions in it and stay strict to it.

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        • #5
          Re: Avoiding shortages

          Right, a reinforcement design is constantly required. That is the reason, for example, it's great to have an extra tire, crisis cash, and protection. Note, you never know when things will turn out badly.
          Synchronzed Supply Systems Ltd

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          • #6
            Re: Avoiding shortages

            I believe shortages, are easily avoidable through proper planning. This is because, knowing what you have and what you need, and coming up with ways to ensure that it is acquired at the proper time, will help avoid any imbalances in the business products which can hinder performance. I believe that the personnel in question should have good judgement, and be able to recognize and act upon early warnings.

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            • #7
              Re: Avoiding shortages

              My supplier procures products from India as well as China. Indian products have high demands compared to Chines products. However, there are shortages sometimes, mostly the Indian products. Shortages of Indian products are caused due to disturbances in the border area, problem with custom clearance or when the manufacturer delays the supplies. When there is shortages, ourt business comes to stand still.

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              • #8
                Re: Avoiding shortages

                Inventory management is something people have to take a look at. Because that way one can keep the shelf with supplies. Here the sold products and the stock items are listed. So you get the idea how many products are left to sale. It can be a good option. And it can save a lot of time for later. You can see that many malls and the shops are having this concept. And it's something worth thinking about. I have not done much about this though. Yet to work on the shortage of the products for our shop offline.

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                • #9
                  Re: Avoiding shortages

                  Shortages occur majorly due to a mismatch in planned versus actual arrivals of goods. With more and more companies following a lean inventory model to save inventory holding cost and working capital, a delay of an item disrupts the entire supply chain forward. To minimize risk, it helps having visibility throughout the supply chain. Read how visibility minimizes risk of a JIT operation.

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                  • #10
                    Re: Avoiding shortages

                    Having a backup is always good to ensure that there is no loss in money flow and supplies

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                    • #11
                      As long as you had an agreement with the company that is supplying you with one thing or another, the number of items paid for are exactly what you are owed to be delivered with, so if there is any situation that led to having shortages, they supplier is definitely supposed to make sure that you receive the paid number of items. If it means having to put another freight to deliver your products, they are literally held by law to do so.

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