The recent sanctions imposed on Russia are likely to test the agility of many business’ Supply Chains. Energy costs, raw material supply, and shipping routes could all become unpredictable and lead to the further stress testing of existing operating models and margins.
Before costs increase further and potential shortages materialise, now is a good time to ensure that supply chains can still perform under new conditions and scenarios. In particular, fuel prices are likely to remain high for some time requiring a particular focus on improving transport efficiency.
Possible risk management actions to take can include:
- Review infrastructure in line with changes in sales volumes
- Explore methods for increasing the percentage of variable costs with the supply chain
- Review sources of supply to improve availability and resilience
- Can delivery frequency be reduced to all or some areas?
- Can route scheduling improve the performance of owned or contacted fleets?
- Ensure contractors represent best service and value for money
Davies & Robson are uniquely placed to help companies improve their Supply Chains with solutions that work. Should you require assistance in key areas of business analysis & planning, and operational planning, process and automation review, outsourcing and supply chain planning, we will be pleased to help. For an informal discussion, please give us a call on 01327 349090