How to Manage Inventory During Supply Chain Shortages

Almost every business owner is feeling the chain shortage pinch, and getting some of your favorite products online has been challenging to say the least. With supply chain disruptions at an all-time high from components to steering wheel columns, knowing how to manage your inventory with these scarcities is crucial, so BSM North America is here with some expert tips.

Look for Alternative Solutions

As a business owner; creativity is a requirement. So, if you have issues finding the materials you need, or the prices are too high, consider alternatives you can utilize. For example, if lumber is your primary product, consider other options like hemp or bamboo or choose silicone to replace rubber products.

Let Your Customers Know About the Delays or Shortages

One of the essential things you can do is notify your customers about shortages. Whether you are dealing with shipping delays or out-of-stock items, they will appreciate you letting them know so they can be more prepared. Notifying them can include:

●        Offering the option for tracking information.

●        Reminding them on their cart page.

●        Placing a notice in your store

Estimate Your Supply Chain

Analyzing all the parts of your fulfillment and manufacturing process will help you understand where all your product comes from, how long it takes for them to arrive, their cost, and if there are any delays. Clear visibility is the primary key to overcoming shortages and finding ways to improve processes or look for alternative options.

Consider Adjusting Your Pricing

When shortages occur, the prices can go up, so you may need to increase your costs to help stabilize profits. Understanding what you are paying for the materials in products can help communicate to customers, so they won’t be surprised the next time they make a purchase.

Cut Back on Waste

Another often overlooked and beneficial option is to reduce the waste your company produces. The fewer products and materials thrown out means having more to sell. A few areas to consider looking at are:

●        Looking at packaging and considering the best ways to keep your products protected during shipment

●        Manufacturing and utilizing repurposing and reusing for all your products

●        Analyzing how your items are being stored to reduce breaks, spoilage, and accidents

●        Finding ways to minimize returns by having more accurate photos and product descriptions and having answers to the most commonly asked questions about these products

Keep a Surplus

In addition, you want to stay as ahead as possible, so make a new order before you are out of the product. Having an emergency stock of products and packing in manufacturing materials can help negate the impact if there is a shortage.

When You Need Exceptional Products and Services, Choose BSM North America

Managing supply shortages is critical to your business's survival, but careful planning can make the entire process more manageable. Valuing customers is a key factor to success, and when you work with BSM North America, you are getting a trusted name in the industry. Our team offers the highest quality services, from industrial fabrication to commercial machining, that our Minnesota community has depended on for over 30 years.

Our team works hard to make the development process as streamlined and simple as possible, so message us online or call us at 952-890-8146 today.