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Operations & Fulfillment
April 22, 2024
NAVIGATING SUPPLY CHAIN PAIN
Credit: Getty Images by chain45154
By Darryn Garson
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Comments
Between the Baltimore bridge collapse, Red Sea conflict and Panama Canal
drought, the supply chain has been in the spotlight because of the global
pandemic and shutdown, international conflicts, major weather events and more.
ADDRESSING CHALLENGES
Customers need assurances from businesses that merchandise will arrive when
promised. In an increasingly competitive landscape, businesses need to take
proactive steps to implement change to keep their customers satisfied.
One of the main issues is that businesses can only address the challenges they
can identify. These challenges create the supply chain woes we have today, which
puts stress on the retail landscape, causing many disruptions throughout the
industry. It can cause disruptions in product availability, increase lead times,
lead to a lack of supply chain visibility, boost freight and product costs,
inhibit communication, and much more, creating challenges with operations,
labor, transportation and global trade. Finding the root cause of these issues
and navigating through them is the key to success. Supply chain companies and
leaders must understand the root cause of these challenges and effectively
navigate through them.
Related story: With Leaner Inventories, Retailers Must Prepare for
Transportation Disruptions
EMBRACING DIVERSIFICATION
The key to a strong foundation is a sound supply chain that can adapt quickly
though unforeseen disruptions. It's important to diversify your sources,
strengthen your key relationships, and manage your inventory, operations and
logistics to reduce the risk of future disruptions. Diversifying sources helps
reduce risks associated with relying on one supplier or source. If your sole
supplier encounters disruptions, having an alternative source in place can help
to mitigate any disruptions to your supply chain. In addition, diversification
can lead to cost savings by having more tools at your disposal for negotiation.
At Remcoda, we heavily rely on the supply chain to source materials, produce
goods and deliver to the end customer. Our company, and companies of all sizes,
lean on international suppliers for products, services and delivery. The
globalization of production creates complexity as there are numerous factors in
place that leave the system prone for disruption. Some of these causes are labor
strikes, industrial accidents, supplier bankruptcies, climate-induced weather
events, delay in vessels, etc. At Remcoda, we learned to improve our supply
chain operations by creating contingency plans and improving visibility by
leveraging the tools at our disposal. We learned that rather than to just react
to crises as they arise, it’s crucial to delve into the root causes of these
disruptions and take preemptive action. A stronger supply chain with
contingencies in place is more likely to adapt to disruptions and challenges,
keeping the flow of goods smoothly throughout the supply chain.
MAXIMIZING STRATEGIC PLANNING FOR ACHIEVING SUCCESS
Work closely with your partners, suppliers and stakeholders to proactively solve
your common problems. Use technology to your advantage and use tools to help
forecast, optimize and increase efficiency. Put a strong emphasis on forecasting
to better predict demand, utilizing all data analytics at your disposal to
identify inefficiencies and improve decision making. Diversify your sources by
expanding into different regions of the world. Look internally at your logistics
and examine if you're operating efficiently. Look to your peers to work through
common problems.
It's important to understand that supply chain crisis creates significant
challenges for the industry. Use the tools at your disposable to help navigate
through this global landscape. By proactively looking at your business,
reviewing the global landscape, and assessing the vulnerabilities, you can
strengthen your business and position yourself for success in an increasingly
complex and unpredictable business environment.
In conclusion, the supply chain today is still feeling the effects of the
pandemic and the lingering impact of the global shutdown, as well as large
shifts in consumer spending. Additional international conflict and political
unrest have added pressures on global supply. Companies need to use the tools at
their disposal to adapt and better navigate through uncertain times and position
themselves for success.
Darryn Garson is the chief growth officer of Remcoda, the top supplier of food
service and safety products in the U.S. market.
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E Darryn Garson Author's page
As the chief growth officer at Remcoda, Darryn Garson is an innovative leader
who oversees the company's retail division. With a keen focus on driving growth,
Darryn manages every aspect of the retail operations, including sourcing,
product development, sales, logistics, planning, design, customer service, and
marketing.
Under Darryn's direction, the retail division has witnessed exceptional success.
One of his significant achievements is the management and growth of our flagship
brand, BluZen. With Darryn's strategic guidance, BluZen has distribution in over
10,000 retail doors worldwide. Furthermore, Darryn has successfully spearheaded
the private label division of the business, securing active programs with
leading retailers such as ULTA Beauty, Walgreens, CVS, and the TJX Companies.
Before joining Remcoda, Darryn worked in the commercial real estate market. This
experience honed his skills in negotiation, deal structuring, and strategic
planning, which he effectively applies to his current role.
Darryn holds a bachelor's degree in science from the University of Michigan.
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