CALL US:
965-2206-0969

Supply chain disruptions typical for 2021

International shipping is hard. It’s a logistical nightmare if we are being honest. There are a lot of things that you need to take into consideration and stay on top of. For example, you need to make sure the client’s belongings arrive on time, you get custom clearance, that you handle all the necessary paperwork, etc. This in and of itself can be an extremely arduous and exhausting task. Especially, if you take into consideration that sometimes you’ll need to tackle the problem of supply chain disruptions. However, don’t fret Easy Move Kuwait is here to help. Today, we are going to show you what supply chain disruptions are, what are the most common in 2021, and what you can do about them. So, without further adieu, let’s get started.

face bask on blue background
Covid-19 has massively impacted the way the moving industry works. And changed what became the typical disruptions in the supply chain.

Supply chain disruptions typical for 2021: what you’ll learn

Today, we are going to share with you a couple of tips and tricks that will help you on your journey to international shipping. However, that’s not the only thing you’ll learn. We’d also like to share with you:

  • What supply chain disruptions are
  • How to prevent supply chain disruptions
  • What to do when your supply chain has been disrupted
  • Typical supply chain disruptions for 2021

We consider these questions to be of massive impact, and anyone that’s worth anything in international shipping must know the answer to these questions. So, before you hire custom clearance services Kuwait there are a couple of things that you should take into account.

What are supply chain disruptions?

Supply chain disruption is a mouthful. But before we can actually answer the question of what a supply chain disruption actually is, we need to first define what a supply chain is. Then you can easily deduce what the disruptions in that “chain” are. So with that being said, what are supply chains? Investopedia defines it like: “A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer.” Or, as far as the moving industry is concerned, a supply chain is a process by which you relocate belongings from point A to point B. And everything in between. It’s your entire network, or process that allows you to do business with clients. So, naturally, a supply chain disruption is a break, disruption, interruption in that network or process.

Supply chain disruptions in shipping containers
Currently, there is a global shortage of shipping containers available.

What are supply risks and how to prevent them?

Once you understand what disruptions in your supply chain means then naturally the question becomes, how can I prevent it? Well, before you try to prevent it, let’s first see what can cause disruption in your supply chain before, so that you can know how to mend each one.

  • Financial risk. Also known is the possibility that suppliers will encounter a business scenario that threatens their financial health.
  • Reputational risk. A rep risk occurs when a supplier engages in activity that negatively affects your brand perception.
  • Natural disaster risk. This one goes without saying but a natural disaster risk occurs when your supply chain is disrupted by a hurricane, earthquake, or other natural hazards.
  • Man-made risk. Man-made causes to your supply chain (fires, explosions, etc) are also quite prevalent.
  • Geopolitical risk. The possibility that your supply chain is disrupted by global political events.
  • Cyber risk. When your business is harmed by your suppliers’ use of technology. 

So make sure you check with your land transportation company Kuwait about these risks.

How to prevent supply chain disruptions?

As you might imagine, every supply risk that exists that we’ve mentioned has a different method to mitigate it. Unfortunately, the one glove fits all approach is not appropriate in our industry. However, there are some general guidelines you can take head of when thinking about supply chain disruptions. We recommend that you:

  • Quickly assess critical events
  • Identify risks related to your suppliers
  • Evaluate the viability of your suppliers
  • Secure supply, and ensure that you can meet customer commitments

While these little recommendations might seem nonsensical they are key in preventing lasting damages in your supply chain. You know what they say an ounce of prevention is worth a pound of cure.

Pencil near white printer
Make sure you have a contingency plan for disruptions in your supply chain.

How to manage supply chain disruptions?

So, great you’ve learned what supply chains are, what disrupts them, and now you’re staring down the barrel of the gun and asking yourself, well how do I manage them? Excellent questions. And while the answer to the is highly individual to the disruption and your business’s circumstances, here are some general guidelines we always suggest to our clients:

  1. Be aware of risks and have a contingency plan. The single most important part is to be aware that your business is vulnerable to risks and to have a backup plan if those risks do occur. Make sure you have a flexible enough plan so you can adhere to any challenge the industry throws your way.
  2. Develop supply chain disruption strategies.
  3. Avoid supply chain disruption in the first place.

The idea is to have an effective supply chain disruption risk management that involves identifying potential threats, assessing risks, and mitigating their impact.

Typical supply chain disruptions for 2021

Before we part ways, let’s leave you with the best practices in global shipping when it comes to supply chain disruptions. Covid-19 has massively impacted the way the moving industry works. As a matter of fact, it’s also impacted the supply chain. The most typical supply chain disruptions in the year 2021 are as follows. First, the freight rate increases. Second, Shipping costs drivers. Third, Container Shortages. Forth, COVID cases reducing the number of workers. Fifth, labor constraints. These are just some of the disruptions that can occur in your supply chain. So be smart, plan ahead, and use the strategies mentioned in this blog post to mitigate the risk as much as possible.