Navigating and Mitigating Supply Chain Disruption | FORTNA

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Navigating and Mitigating Supply Chain Disruption

Learn practical strategies for managing external disruptions in distribution fulfillment operations. Ensure supply chain continuity through automation, assessments and business continuity planning. Prepare your operations today to respond swiftly to both significant and minor disruptions in the future.

by Tim Johnson

In the dynamic world of distribution order fulfillment, external disruptions such as tariff instability, geopolitical events and natural disasters can pose significant challenges. Preparing, managing and responding to these disruptions will help ensure supply chain continuity.

In this FORTNA blog, we explore practical approaches to managing external disruptions and proactive measures to safeguard operations, including preparations for and management of disruptions.

Prepare for disruptions

In a perfect world, you would only need to be concerned with your operations, staff and customers. However, as we have learned from the pandemic and other geopolitical events, fulfillment operations must be prepared for anything. Understanding your operation’s weaknesses and potential risks can help you mitigate issues before a disruption occurs and can also place you in a position of strength compared to the competition.

Conduct an operational assessment
Fully understanding the current state of your distribution operations, including software, controls and material handling equipment levels, can be vital before a disruption. Having a third-party partner, like FORTNA, perform the assessment will ensure a complete and thorough report of findings and an action plan to mitigate them. Being fully stocked on critical spare parts, knowing your overall system health and identifying opportunities for optimization will enable you to address issues before an external event magnifies them.

Implement business continuity planning (BCP)
BCP is a strategic process that prepares organizations for disruptions before they occur, maintaining essential functions during and after a disruption. The goal is to ensure critical operations can continue with minimal downtime, safeguarding the business against risks such as natural disasters, cyberattacks or supply chain disruptions. This involves identifying potential threats, assessing their impact and developing contingency plans. Key components of BCP include emergency response procedures, backup systems and recovery strategies.

Invest in scalable and flexible automation
Scalability ensures that a business can adjust its operations to meet varying demand levels without compromising efficiency or quality. Flexibility, on the other hand, allows a company to adapt quickly to unexpected changes, such as supply shortages, logistical challenges or shifts in consumer behavior. A scalable and flexible operation will enable businesses to maintain continuity, minimize downtime and respond proactively to crises.

Mitigate supply chain disruption

Managing disruptions

Managing disruptions in warehouse operations requires a proactive and strategic approach. It’s essential to have solid contingency plans that include alternative suppliers, backup storage for inventory and complete visibility into your operations.

Strengthen supply chain partner relationship
One of the mistakes an organization can make is believing it can accomplish everything independently with equal talent and experience. By engaging with a supply chain partner like FORTNA, an organization can rely on them to monitor and consult on disruption events while offering their expertise and experience on both the global and regional stage.

Real-time data and visibility
One of the most crucial tools available to a warehouse operation during disruptions is proven warehouse execution system software (WES). This software provides operators with real-time, actionable data necessary for making decisions that maintain high productivity and throughput. Additionally, by implementing artificial intelligence, algorithms and machine learning, operations can streamline decision-making when it comes to order fulfillment, labor allocation and shipping.

Actionable contingency plans
Part of the BCP process involves creating contingency plans that can be used in response to disruptions. A clear and concise action plan enables operations to react quickly while maintaining service levels. Contingency plans often include alternative sourcing strategies, backup inventory, and flexible staffing arrangements that help mitigate the impact of external events. A well-prepared contingency plan enhances resilience, allowing warehouse operations to function smoothly and efficiently despite unexpected interruptions and challenges.

FORTNA Can Help

Resilience and proactive planning don’t just happen. Taking strategic steps before a disruption is key to navigating disrupting events when they occur. By implementing automation, integrating proven warehouse software, and developing contingency plans, distribution fulfillment operations can maintain efficiency and continuity in the face of challenges. FORTNA has the expertise and experience to help you build a scalable and flexible order fulfillment operation that can not only respond to disruptions but also rise above them.

 

About the Author

Tim Johnson

Vice President, Systems

Tim Johnson is a seasoned supply chain leader with over 25 years of experience in delivering results across the entire supply chain spectrum. He possesses a deep understanding of the industry and a strong track record of optimizing warehouses, driving operational efficiency, and achieving customers business case realization. Tim is recognized as a solutions subject matter expert, skilled in building and leading high-performing teams and bringing a pragmatic perspective to complex supply chain challenges. He is a member of WERC and CSCMP.