| Supply chain management can be a complicated | | | | backup inventory, or are in an industry that involves |
| endeavor for multi location retailers, wholesalers, | | | | perishable goods. The solution is to seek out and |
| manufacturers and other business entities, though it's | | | | maintain relationships with backup suppliers while |
| no less complicated for small business owners and | | | | staying on top of availability from active distributors |
| job shops who rely on the precise availability and | | | | in a network. By doing so, small business owners |
| deliverability of goods. If anything, small business | | | | safeguard themselves from shortages only at the |
| owners have even more at stake, as they often lack | | | | risk of reduced profit margins and small scale delays. |
| the operating budget to withstand serious disruptions | | | | After all, there's a reason why some suppliers are |
| in the supply chain that would be more easily dealt | | | | primary while others are secondary. The only |
| with by larger businesses. | | | | industries that cannot compensate for unexpected |
| Though many factors can be well outside the control | | | | shortages through this method are those who offer |
| of small business owners, there are two measures | | | | production or assembly of customized goods. |
| that can be undertaken to reduce the possibility of | | | | The second measure is tied into logistics and involves |
| disruptions within the context of supply chain | | | | establishing a backup distribution network. This can be |
| management. The first of these measure involves | | | | as simple as finding another shipping company, |
| establishing a deep inventory network. | | | | delivery service or courier and being set up to utilize |
| An inventory network configuration involves the total | | | | their services ona moments notice. As most logistics |
| number of suppliers and associated production | | | | companies charge on a per freight basis, it's a small |
| facilities and distribution centers available to a | | | | expense to be prepared for an immediate |
| business entity. One of the most common mistakes | | | | changeover should the need arise. Setting up |
| small business owners make when it comes to | | | | accounts with logistics providers, including credit and |
| inventory is assuming that backup inventory is the | | | | manifests can take days or weeks, depending on the |
| only way to sufficiently insure against unexpected | | | | area of service. Being prepared beforeheand can |
| shortages. This can become a real issue as few small | | | | mean the difference between shipping on time and |
| businesses possess the space or capital to invest in | | | | not shipping at all for many small businesses. |