As a reputable supplier, you must have your own reliable suppliers to deliver dependable, consistent equipment or devices. While supply chain disruptions impact all sectors, healthcare supply shortages can mean the difference between health and ailment (or worse).
One prime example is the personal protection equipment (PPE) shortage the world experienced during the dawn of the COVID-19 outbreak. While not all supply chain delays are as severe as this, conversations between supply chain leaders and suppliers are necessary to combat future issues.
Key Takeaways:
- Past trade policies, inventory protocols, and labor shortages took a volatile supply chain and created havoc at the dawn of the pandemic.
- Open communication is necessary moving forward as you navigate the supply chain disruption. Pay close attention to certain matters – it’s going to be the things you don’t want to hear.
- Whether you’re the supply chain leader or you are looking for ideas on how to navigate conversations with supply chain leaders, ask questions to spark a discussion.
What is Causing Supply Chain Delays?
We hear a lot today about supply chain delays. With all the issues people face obtaining common (and not-so-common) goods, something is clearly wrong.
Let’s consider what could be wrong. For one thing, the trade policies in America over the past 30 years were all about efficiency to reduce costs. It was the “get only what you need” mentality.
Unfortunately, that meant operating on thin margins regarding supplies, backstock, and overstock. What stakeholders thought would keep costs low created havoc when the world faced a pandemic that made obtaining necessary materials to build supplies impossible.
During the pandemic, any inventory onsite wasn’t available for new orders, and new supplies weren’t due to come in any time soon. While a lack of materials is a significant reason for supply chain delays, several factors make it difficult to navigate supply chain disruptions today.
According to logistics experts, causes of supply chain delays include:
- Shortage of shipping containers
- Rising the price of raw material
- Dependency on China and other foreign trade
- Suez Canal blockade
- Labor shortages
Navigating Supply Chain Delays: 4 Things Suppliers Shouldn’t Say
Before covering what things supply chain leaders want to hear (and should be saying), let’s check out the top four things you don’t want to hear from suppliers.
“We’re having workforce issues”
Suppliers and subcontractors must be able to support your requirements, and they cannot do that if they are one of the many suppliers that face labor shortages. Forbes published the results of a U.S. Chamber survey, and 90% of the chamber of commerce leaders agree that labor shortages limit economic growth and create further supply chain delays.
“We don’t have enough inventory”
Or, worse yet, “We’re having issues with our suppliers.”
Inventory issues and a supplier’s ability to deliver the materials you need to make your products are a few other significant issues related to supply chain delays. Not all of these supply problems are labor related.
Many suppliers frequently reduce inventory levels, either because of supply chain delays or because they’re attempting to decrease cash tied up in merchandise.
Comprehending your supplier’s inventory concerns and changes provides visibility into crucial elements of their production schedules and associated risks.
“What safety program?”
While you are highly unlikely to hear this directly from a supplier, the fact is that you might experience this with a supplier. They may not tell you they don’t have an effective safety program, but you will discover there’s a problem when you experience your first supply chain delay with them.
Suppliers should be able to cite specific safety standards and guidelines they follow. They should list all compliance they must follow and ones they voluntarily abide by. Safety protocols should be posted clearly for staff to see, and training on safety policies should be consistent and often.
Chances are, you won’t see that much behind the scenes of how your supplier conducts business. However, if your supplier struggles with delivering products due to safety code violations, employee injuries, or governing agency shutdowns, it’s a good idea to look for another supplier.
Also, if safety protocols are scarce, you have to wonder if quality control protocols are equally as lax. These are not chances you want to take, especially when working with devices and equipment related to patient care and treatment outcomes.
“We have recently had a data breach”
What cybersecurity measures and data governance does the organization take?
According to the National Library of Medicine, 249.09 million patients were victims of healthcare data breaches between 2005 and 2019. You (and your suppliers) must ensure that your organization’s data is secure to avoid risks associated with these statistics.
You’re probably wondering what data security has to do with supply chain delays. Understanding the chain of custody and information security and how those two relate to the supply chain are the keys to protecting intellectual property.
You can’t deliver to your clients if your systems are locked due to ransomware or encrypted by hackers using malware.
4 Questions Supply Chain Leaders Should Be Asking
Whether you’re the supply chain leader or you are looking for ideas on how to navigate conversations with supply chain leaders, these questions are something these department heads should be asking. Use them to spark a discussion on how to manage supply chain delays.
- What technology infrastructure should be in place to handle your international trade and logistical operations?
- What factors hurt your ability to react to market dynamics?
- What should you change now? How can you adapt technological advancements to handle supply chain delays in the future?
- What sustainability strategies can you take to reduce supply chain disruptions?
Let Your Supply Partner Know Your Supply Chain Delay Protocols
People can handle bad news. What they cannot handle is little to no information about what’s going on with the supplies they ordered. If you’re a supplier struggling to meet the demands of your clients, you can’t pretend it isn’t an issue.
Address the supply chain disruption with thoughtful content that keeps your clients well-informed on the status of their orders, product alternatives (if available), and when relief may be on the way.
At Share Moving Media, we specialize in creating content that lets clients know exactly where you stand during supply chain delays. Contact us today for more information.