In a world that is constantly hit by natural calamities like earthquakes, storms, and artificial disasters like construction collapses, accidents, disasters in dams, etc., all these situations can lead to problematic scenarios where people can get stuck.
To deal with such situations, some companies provide food and clothing supplies to the ones in need. During the COVID 19 pandemic, people got stuck in places where they was a supply shortage and procurement was complex because of the lockdowns.
Many companies have decided to work towards a better future where there are no supply chain shortages, and help is given to the needy in due time.
Establish good supplier relationships
It’s only when a calamity strikes that companies think about taking action to procure food resources and supply them to the ones in need. The ideal way to approach this is by establishing good supplier relationships beforehand so that when the need comes, you have the requirements.
You must keep your supplier close to you so that they provide you with the supplies without any problems when the need comes. It is one of the most important aspects of building a good supplier relationship; you must have active communication to keep the familiarity alive.
Improve the supply chain visibility
There is a chance that your supplier can also be the supplier of other companies. It is also possible that your third-tier supplier has your fourth-tier supplier as his supplier. All these situations can make the smooth flow of supplies problematic. Hence, before finalizing your suppliers, you must carefully research the origin and authenticity of their supplies.
Restock the supplies
You can never guess when there is a supply shortage and procurement is impossible. Hence, it is important that you keep the stocks high so that when there is a shortage of people stuck somewhere, you can provide the required supplies.
Look for backups
Sometimes, suppliers increase their prices when there is a shortage of supplies in the market. They observe growth in demand and increase their prices, which can affect your business because you will have to bear the financial burden.
In such a scenario, you must have backups planned. You must have deals with more suppliers so that when your primary supplier increases prices, you have a backup supplier to provide you with supplies in the decided amount.
If you plan to turn the received products into sellable products, you must ensure that you have enough inputs to create the products. When there is a chance of shortage in the market, the customers start looking for places from where they can retrieve maximum supplies at the most affordable prices.
In such a situation, you must keep your loyal consumer base connected to you by assuring them that you can produce at the same price.
Risk spreading is a strategy that companies can use when one supplier out of the two cannot fulfill the required supplies. The other supplier will have to ramp-up the and provide supplies in an emergency. It is a great strategy for procurement in needful situations.
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The above-mentioned points explain how you can procure supplies. These will help you understand the importance of procuring supplies during shortages in the market. You must understand these thoroughly and accordingly plan your procurement strategies.