May 18, 2022

Companies Swerve Left to Avoid Economic Roadblocks

The global economy has been on a steady incline for the past few years, but recent data suggests that this may be coming to an end. The growth rate of the world’s economy is slowing down, and many economists are attributing it to issues with supply chain management. In order to avoid economic roadblocks in the future, companies need to focus more on improving their supply chains by swerving left when they see obstacles ahead.

There are a number of issues that can create obstacles for supply chains. The increased costs and liabilities associated with transporting goods, the potential loss of revenue from out-of-stocks or insufficient levels of inventory, and shipment delays all pose threats to supply chains. These threats require companies to be more vigilant than ever in order to prevent disaster.

As a result, many companies are starting to look outside the box for new strategies on how they can improve their supply chains. One of these strategies is called “left-to-right supply chain mapping.” This strategy forces companies to think about where there may be problems developing in their supply chains, and then identify the most efficient ways to ensure that they are able to maintain consistent levels of inventory, even in the face of these problems.

According to an article published on CIO Insight, companies have seen noticeable improvements in their bottom lines within just 6 months of implementing this strategy. This is especially true for large corporations with multiple distribution centers across the world.

For example, one of the major benefits of this strategy is its ability to help companies avoid out-of-stocks. Since you are able to see your entire supply chain, you are more likely to recognize when there is a dip in inventory or an issue with distribution early on. You will then be able to act fast and reallocate goods from one warehouse to another so that you can prevent a potential out-of-stock situation.

The success of this strategy shows the value of forward-thinking as a means of improving business. In order for companies to survive as long as possible, they need to understand how their actions today will affect them tomorrow. If not, then these companies will quickly become the dinosaurs of the business world, and their supply chains will suffer as a result.

Fortunately, this does not have to be you. Forward-thinking allows companies to anticipate any possible obstacles that may arise in their supply chain so that they can take steps to resolve these problems before it is too late. Since the cost associated with fixing these problems is often much higher than the cost of preventing them, forward-thinking can end up saving companies thousands if not millions of dollars in the long run.

As their CIO noted on CIO Insight, forward-thinking supply chain management allows for constant improvement, even when there doesn’t appear to be any immediate threats. This means that forward-thinking companies will be constantly working towards improving their businesses, while backward-thinking companies will remain stagnant.