As a small business owner, you have a wealth of knowledge available to you. If you need help with sales, marketing, or branding, there are hundreds—if not thousands—of books and articles you can access for guidance. But what happens when a problem arises, and there’s not much information on how to address it? Simply put, it becomes much harder for your business to operate, especially if the problem is big enough to close your company’s doors.
This scenario is the exact one that many small business owners are facing as they struggle to deal with supply chain issues. A recent survey gathered responses from 775 small business owners spanning multiple industries and found that almost half are struggling with disruptions in the supply chain. Even worse, nearly half said these disruptions affect their ability to stay in business.
With increased pricing, materials shortages, and delays in the supply chain, most small business owners are struggling to stay afloat. The survey even suggests that the seriousness of these problems is causing a myriad of other issues for small business owners, including the following:
- 77% are experiencing higher stress levels
- 64% have increased doubt and uncertainty
- 47% have decreased optimism
- 46% are concerned about their brand’s financial viability
- 38% have reduced confidence
Maybe you’re in the same boat and wondering how to maintain success as your business fights to get supplies. Well, you’d think there’d be hundreds of resources to help you overcome your challenges, but unfortunately, there are more articles on the problem than the solution. And what makes this so bad is that failing to implement successful strategies could strain your relationship with customers.
Consumers’ growing frustration with brands
Issues in the supply chain don’t just hurt your day-to-day operations. They also impact your relationships with consumers. The Harris Poll surveyed shoppers during the 2021 holiday season and found that supply chain challenges hurt brands’ reputations.
The poll’s findings suggest that 89% of American consumers bought gifts online in the past year, and 71% of them experienced supply chain issues. Specifically, 64% experienced problems with late delivery, 49% dealt with delays in order processing, and 31% had orders missing in transit.
The worst part is that most shoppers bought gifts online to avoid potential supply chain issues. Some even started shopping earlier than usual to sidestep delays, but their efforts didn’t help. They still experienced supply chain disruptions. Why does this matter to you? The survey suggests that mistakes as minor as late deliveries could cause a “slight” or “major negative impact” on the way 82% of consumers view brands.
So, if you want to maintain a good reputation, there’s not much room for mishaps. It doesn’t matter how significant the supply chain issues are—if you want to stay afloat, you must figure out how to overcome disruptions in the supply chain to keep customers happy and loyal.
How to overcome supply chain issues
While there aren’t many resources on how to overcome supply chain issues, there are several tried-and-true tips you can use to experience some relief. These strategies are easy to implement, and when combined, they can help you operate your businesses successfully and maintain customer satisfaction. Keeping that in mind, here are five ways to overcome supply chain challenges.
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Increase inventory when possible
Purchasing additional inventory isn’t easy when dealing with limited resources, budgetary concerns, and a small physical space. Still, one of the best ways to overcome supply chain issues is to increase inventory whenever possible, and you can do that by stocking up on discounted items, securing financing, renting storage, and buying as much of a popular product when it’s available.
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Track inventory
Tracking inventory is always essential, especially in difficult times. You should know what items need replenishing, what’s out of stock, and what you have enough of. Knowing what’s available and in what quantities will ensure you aren’t caught off guard and have time to stock up on necessary items.
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Research alternatives
When there’s an unpredictable supply chain, there’s never a guarantee that an item will always be available. As a result, you should always research alternative suppliers instead of putting all your eggs in one basket. It may also help to provide alternative options to customers. For example, if you own a restaurant, swapping out certain ingredients and dishes for more accessible items may be beneficial.
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Be transparent with consumers
Honesty is the best policy. With so many disruptions in the supply chain, you should be honest with customers about what to expect. And you should be honest before customers place an order. Explaining potential delays and listing out-of-stock items will help consumers know if they still want to purchase something, and giving them that option will prevent buyer’s remorse and complaints about your brand.
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Adopt automation tools
Managing a supply chain is easier with the right tools. Using great automation software will help you track inventory, know which products are moving the quickest, and manage shipping. Oftentimes, it’s easy to think big brands are the only ones that can benefit from automating processes, but your small business has much to gain from this strategy as well, and you should act on that knowledge as soon as possible.
Maintaining long-term success
You don’t have to struggle under the weight of supply chain challenges. While it’s hard to find guidance on how to navigate these issues, implementing the tips that are currently available should be your first priority. Doing so will give you a better chance at keeping customers happy and maintaining an excellent reputation, and that’s what will help guarantee success during this trial and afterward.