Any strike has the potential to cause disruptions and delays in the transportation of goods, and derail production and distribution. This can lead to increased lead times for shipments and difficulties in maintaining adequate service levels.
On a global scale, strikes can affect the movement of goods between countries and disrupt the flow of products through international supply chains. This can have a ripple effect, impacting companies and consumers in other regions that rely on the affected products and are forced to source good from elsewhere due to delays.
How can supply chain companies prepare for strikes?
There are several contingency plans that supply chain companies can make to help them combat strikes and deal with the fall out caused by industrial action.
Some measures that companies may consider including in there operational planning are
Diversifying sources of their goods and services
By relying on multiple suppliers and transportation providers, companies can reduce their dependence on any one particular vendor or carrier and minimize the impact of a strike or disruption.
In anticipation of strikes, companies can increase their inventory levels in advance of disruptions to ensure that there are enough goods on hand to meet customer demand.
Alternate routes and transportation options
Supply chain leaders can plan to manage the issues caused by strikes and explore things such as alternate delivery routes and other modes of transportation, such as air or sea freight, to bypass delays and ensure that goods reach their destination on time.
Partner with customers
Taking a proactive stance can help supply chain companies to mitigate strike damage. Working with customers to develop contingency plans that will be triggered in the event of operational disruptions or delays. This could include adjusting delivery schedules or finding other options for goods transportation.
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