Global supply chain issues, increased transportation costs and shipping delays are an ongoing post-pandemic problem. How is that impacting businesses when failure is not an option? We asked EO members from various industries about the solutions and strategies they have implemented in response to these significant challenges. Here’s what they shared:
Take creative actions
“Our small business has absolutely been impacted by higher transportation costs and shipping delays. We’ve taken creative actions to mitigate the damage:
- Broken down pallets into individual boxes to secure shipping lanes because palletized air freight is being given to larger high-volume companies.
- Utilized lesser-used ports, other modes of shipment (air, rail), or a mix—to diversify the risk.
- Developed dual suppliers for critical items where we were previously dependent on a single supplier. We strategically put redundancy in the US in case of China lockdowns.
- Increased safety stock held at both our warehouse and suppliers, creating a buffer should certain items become unavailable.
- Secured supply for all of 2023, because our German-made materials may be impacted by the Russia/Ukraine war. The carrying cost is offset by buying 2023 materials at 2022 pricing.”