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Is Your Supply Chain Budget in Shape for 2021? Featured

Is Your Supply Chain Budget in Shape for 2021? "2021, over 2020 - New Year"

This year has been challenging for almost every industry. The supply chain is one of those who have suffered significantly due to the effects of the COVID-19 pandemic.  While the industry seems to be coming to terms with the coronavirus's challenges, some companies are still struggling to cope with the after-effects. Other supply chain companies have shut down entirely because they can no longer sustain operations and maintain a profitable balance. Although things have not worked out as many anticipated this year, there are various steps that can help ensure your success in 2021 and beyond.

Here are some supply chain recommendations that can control your business performance in 2021

  • Make your budget a range that can be adjusted

One thing that almost everyone agrees with is the fact that no one knows how long the coronavirus pandemic will last. As such, budgets should be flexible enough to accommodate changes that may occur if the vaccine is developed on time or if it takes longer. Put together a budget based on contingencies. For instance, if the virus continues, your budget must be flexible enough to allow cost-cutting measures to be implemented. If profits are experienced, it should allow new investments to be made. Budgets must be flexible enough to enable cost management.

  • Consider partnerships

Supply chain depends on individual success. However, having a reliable and knowledgeable partner can give you access to more opportunities, expertise, and end-to-end transparency, which may boost your fortunes. Transparency gives trust to both domestic and foreign vendors and may increase your success. Having transparency in shipment data and clear internal and external communication allows your customers to know when to expect their orders. It also allows them to track new trends and increase customer satisfaction.

  • Evaluate the entire supply chain

Many things have taken place, and you might not know the extent of the impact the pandemic has had on your operations. As you plan your budget for 2021, you must aggressively evaluate all the supply chains and be open-minded while restructuring it for the long-term. Ensure that your supply chain is in line with the organizational strategy. According to the latest survey by Gartner, only 21 percent of respondents believe that the supply chain is resilient enough to provide good visibility and agility that will change sourcing, manufacturing, and distribution activities. With the global pandemic that we are facing now, supply chain networks and companies must be strong enough to stand the effects and ensure service delivery.

  • Be willing to adapt

If there is a year that has shown us the importance of adapting like no other, it is 2020. For those who are unwilling to do things differently and try new methods, this year has shown that there is no way they can keep up with the changing times. As a supply chain company, add new products and offer new delivery methods in your budgets because that is what 2021 will be all about. As things change, you must be creative in your budgets—for example, budget for online shopping experience, contact-free delivery, and care packages.

  • Assess all your vendors and suppliers

Before you begin budgeting, it is always a good idea to assess your vendors and suppliers to ascertain how much you are spending on supplies and inventory. As we go into 2021, this will be the most important thing because it allows you to identify where you have been spending more and what you can do to reduce the expenses. Also, see if you have different needs in 2021 compared to what you had in 2020 and how these needs can change your business model and your budgets.

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Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

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