Supply Chain Resilience: The Role of Operations Management in Mitigating Disruptions
Guide Sep 11, 2023
Making supply chain resilient is a task that can only be achieved with proper operations management. Hiccups occur in every trade but a resilient supply chain can give you enough time and resources to prepare yourself and deal with them. Here is how operations management can mitigate disruptions.
The managers need to keep communicating with the supply chain partners in order to adjust their systems accordingly. Disruptions often occur in the supply chain when you don’t communicate with your partners effectively. Communication is the key to smooth operations and the sooner you realise its importance, the better it is for business.
If the operations manager doesn’t plan out every single thing related to the operation of your supply chain, then there are chances that you will encounter many disruptions along the way. A thorough plan is important to deal with any disruptions that may arise.
It is necessary to build a strong relationship with the supply chain partners so that you can collaborate and solve any problems with each other’s help. If the relationship is strong, you are able to trust your supply chain partners. This allows you to rely on them in case a crisis occurs. So, the operations manager can effectively mitigate disruptions by forging a good relationship with the suppliers.
Many different strategies can be used to make the supply chain resilient and minimise any risks of disruptions. Making the operations flexible is one of the strategies that can make things easier concerning the supply chain. Flexibility in operations is a necessity so that they can be adjusted quickly and easily in response to a crisis. Another strategy is keeping enough extra inventory so that a sudden increase in demand can be met but not enough to go to waste.
The inventory levels need to be managed so that you are able to meet even the slightest change in demand without experiencing any hiccups in the process. They must also be managed in order to keep the waste to a minimum and use the storage space in a better way.
Technology is your friend when it comes to operations management. It is the need of the hour to integrate technology into your supply chain management system. Many of your tasks will become easier with its help and you will be able to get things done more quickly and efficiently than before.
Automating the location tracking of shipments, searching for better shipping routes, etc. are just a few examples of technology making your operations easier. When operations are managed this way, using technology, disruptions are less likely to occur and if they do, you are more prepared to deal with them.
The operations manager needs to study past data to figure out the future risks. This will help him prepare the supply chain in advance to withstand any crisis. It is advised to know your enemy and that’s what the disruptions are so it is important that you identify the risk of issues that may arise.
These are some of the things in operations management that can help you mitigate disruptions. You can use a few of them for effective operations and supply chain management and quickly deal with the problems that arise.