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The Hidden Danger of Efficient Supply Chains

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Everyone out there is pushing you to streamline your supply chain to make it more efficient and productive. We actually did just last month in our blog “Understanding the Supply Chain: How Microsoft Dynamics Eases the Process”. But what most people don’t tell you is that the same practices that can help you streamline your supply chain can also make it more vulnerable in a disaster. Steve Banker writes in this article, “that risk is most acute for companies that differentiate primarily on price.”

For example, natural disasters happen and with little or no warning. If the location of natural disasters affects your manufacturing organization, you may just be out of luck. Analysts say it’s in good practice to locate different sites around the globe to avoid total shut down if a disaster like this occurs. This is the exact opposite of how they recommend to run a low-cost supply chain, and no one company can do both. This hidden danger can greatly affect your supply chain, but there are things you can do to lessen the blow.

  • Contingency Planning: Figure out every last detail about who will do what when or if a facility goes down. It may sound simple, but there are lots of details to square away during this sort of planning. It can be a large undertaking, but well worth the time and effort to put your mind at ease and to prepare for the unthinkable. This type of planning is made simpler with the right software in place. We enhance Microsoft Dynamics GP to enhance this type of planning through operation modules. Check out our Operations Suite for more information.
  • Dual Sourcing: Dual sourcing can also be an option because if one supplier is unable to provide what you need, then the secondary supplier can step up so you don’t miss a beat.

For more information on how to lessen the blow of hidden supply chain dangers, please feel free to contact our experts at Blue Moon by emailing [email protected] or calling 401.276.9000.

By Blue Moon, Leading Microsoft Dynamics Operations Suite Solution Provider

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