Have you ever been in that situation when you are either in the middle of a project or trying to complete a project and you come up short on some resource to get the job completed? Not a very enjoyable situation. The dominos begin to fall and stopping them is a bit of a chaotic chase to supplement the needed resource.
This scenario has become more frequent in the past few months as the nation’s supply chain has been dealing with numerous challenges. There is not one single factor which can be identified. They range from not being able to get raw materials to and from origination points to manufacturing locations to not having the hands to touch the materials to convert them into end products. Ships are anchored in ports waiting for offload and truck lines are overwhelmed by the need for more drivers to transport the waiting products.
Some have indicated it is the result of returning the economy from the pandemic shutdown while others suggest it has been the negative impact of the various stimulus packages introduced to bridge the financial needs for Americans.
The fact of the matter is that we can talk about it for days or even longer, but we still do not get movement on the challenge. As leaders, we cannot wait for a resolution to suddenly happen. That is not going to take place. We need to pivot again just like we did in early 2020 when the shutdown started. In order to sustain our businesses, we had to make changes to how we operated. At that time when the world came to an almost screeching halt the momentum to pivot was thrust upon each industry differently but equally impactful.
This challenge is not as swift but needs an equal amount of attention or you won’t have ink when you need it. Maybe that is a bit of a stretch, but the way you manage your various inventory components in your business will be the difference in financial results. For example, clients of ours are being placed on rations. They call it something different so it does not sound so hard and cruel but at the end of the day if you can’t get product to produce your end deliverable you cannot invoice. If you can’t produce goods and services and invoice for them, there is no cash flow. No cashflow leads to less demands for staff because you cannot produce products which in turn starts a new cycle of economic impact – layoff due to lack of materials and ability to produce. This may be eased because so many organizations are understaffed. As production demands drop because raw materials are not available, then the need for additional staff will also ease up some. This is a true supply and demand challenge.
This week in an effort to overt such issues at your organization, you need to look deeply at your traditional inventory stocking model and determine if and what impact absence of goods would have on your ability to create income. If your industry is imposing limits on purchases, begin to think creatively as to how you can be an essential provider because you have access to supplies. You need to keep a close eye on delivery times and the impact it will have on your ability to perform. Don’t get caught being out of ink when the job is only half complete.
Looking at your inventory model and need some third-party insights? Give your Promise Guide a call at JKL Associates FL (407) 984-7246 or MI (313) 527-7945