To run your supply chain successfully, you’ll need to consider both internal and external factors when you plan. Internal factors are the ones you can control, while external factors are the ones that are out of your hands. While you can’t prevent external issues, you can prepare for them. Here are some external forces that affect your business’s supply chain.
Natural Disasters
Some of the most common external forces that affect your business’s supply chain are natural disasters. Natural disasters include floods, fires, hurricanes, tornados, storms, earthquakes, and landslides. Although you can’t prevent the occurrence of natural disasters, you can inform your customers if a natural disaster will delay their package’s delivery.
Federal Regulations
There are many ways that federal regulation changes can affect your supply chain. Depending on the specific regulation, you’ll find that changes to these laws can affect your supply chain positively or negatively. The best way to deal with federal regulations is to be aware of them and any upcoming changes.
Demand Fluctuations
Demand fluctuates all the time, and while some changes are predictable, others are not. Since supply and demand affect each other, changes in demand will impact your supply chain. To prepare your business for demand fluctuations, you should keep track of demand with current data and improve your demand forecasting systems. A few factors that can affect your demand significantly are market trends, consumer expectations, seasonality, and changes in the economy.
Talent Shortages
Sometimes, it can be challenging to find and hire talented employees for your supply chain. Within the past few years, there has been a significant decrease in the available talent for supply chains. This is the reason why it’s crucial to retain your employees and provide an excellent workplace for them. When you reduce turnover, your business will have plenty of talented professionals to run your supply chain.