The 2020 Mid-Year Economic Update_long

Tip: Plan for Potential Disasters

Be proactive, not reactive in case of an unplanned supply chain disruption.

Distributors should prepare now for possible supply chain disruptions to ensure deliveries will be able to continue, says Paul Dittmann, executive director of the Global Supply Chain Institute at the University of Tennessee-Knoxville, in Preparing for the Worst.

“If nothing bad has happened to you in a long time, the probability is pretty high that something major will happen,” says Dittman.

Distributors should have backup options in case part of their supply chain breaks down, including alternate shipping and supplier options.

With incidents like the recent port dispute, many distributors have already beefed up their supplier “bench strength” and those who haven't should do so immediately, according to Bill Childers, vice president and managing director of the newly formed power transmission division at Affiliated Distributors.

Being able to find a solution quickly in the event of a disaster or business disruption can even lead to an opportunity to service new customers.

Read more about developing alternative solutions to plan for supply chain disruptions in Preparing for the Worst.

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