How Your Business Can Handle 2021 Supply Chain Challenges
This Year’s Unique 2021 Supply Chain Challenges
They say hindsight is 20/20. Looking back at a situation (often traumatic) and evaluating it after the fact provides insights not always visible when we’re in the moment. Unfortunately, 2020 and 2021 brought more than their fair share of traumatic events. The COVID-19 pandemic, the grounding of a container ship in the Suez Canal, and a deadly winter storm in Texas to international unrest, natural disasters, and cyberattacks have all contributed to 2021 supply chain challenges that could have been—and can still be—alleviated by an industry-specific Cloud ERP solution.
The Effects of Supply Chains on Your Business
Global supply chain disruptions and shortages affect businesses in every industry. According to a Harvard Business Review article, the global shortage of semiconductors has been joined by a shortage of raw materials for making plastics that are used in many everyday products, such as food packaging, appliances, and smartphones. There are also reports of lumber, metal, and steel shortages in addition to a lack of labor and transportation options. It’s apparent that businesses, regardless of industry, will not escape the fallout and pain points brought by 2021 supply chain challenges.
Planning and Forecasting
Though no one could predict such overwhelming events, is there a way for businesses to pivot when such unforeseen circumstances arise? There is: Implementing a comprehensive Enterprise Resource Planning (ERP) solution. An ERP solution provides businesses with a single business management platform that integrates business-critical applications for streamlined workflows and efficient sharing of information. ERP also provides the planning and forecasting capabilities necessary for effectively managing inventories/resources, supplier deliveries, and production schedules. This enables a business to adjust to rapidly changing variables.
ERP to Better Manage Constraints
Operating a business during unprecedented supply chain challenges is certainly not ideal, especially when operational constraints, such as shortages in supplies, labor, and transportation options, are predicted to last. However, businesses with an ERP solution, specifically a Cloud ERP solution, have a real advantage. They are working with synchronized data from every department. Since the centralized system is based in the cloud, the data is accessible with a web-enabled browser over the Internet. With accurate information at their fingertips, these agile businesses can assess the constraints, look for ways to reduce those constraints, and keep customers informed of what is happening. They can alleviate concerns and ensure future relationships, as well as successful business outcomes.
How Acumatica Can Help
It doesn’t take 20/20 vision to see that 2021 supply chain challenges will continue to disrupt businesses in every industry for the foreseeable future, but those who implement a Cloud ERP solution—after fully vetting their options—will be setting themselves up to be an agile, streamlined, and problem-solving organization. i-Tech recommends checking out Acumatica Cloud ERP. As an Acumatica Cloud ERP Gold Certified Partner with decades of hands-on business experience in a variety of industries, we can demonstrate how this award-winning business-management solution can help. Let’s talk about how about how your business can overcome supply chain challenges and more.