As you’ve likely experienced, the automotive aftermarket industry continues to face significant supply chain disruption due to factors like:
- Cyber Risks
- Port Backlogs
- Driver Shortages
- Natural Disasters
These disruptions are causing bottlenecks and escalating part costs, which are being passed on to you and your customers.
With ongoing supply chain disruption, it’s important for all businesses in the automotive aftermarket industry to actively implement strategies to mitigate the impact of these issues.
Here are 5 key measures to limit your supply chain vulnerabilities:
- Diversify your supplier base: Reducing your dependence on a single supplier can mitigate disruption risks
- Identify backup suppliers: Ensuring alternatives when primary suppliers face issues keeps your supply chain active
- Prepare a risk management plan: Identify possible risks to your supply chain, and outline steps to handle those situations
- Maintain supply chain visibility: Track your supply chain operations for prompt response to an arising issues
- Strengthen cybersecurity: Secure your data against leaks, breaches, and malware attacks to prevent disruptions
Given the uncertainty as to when this supply chain crisis will end, and the timeline of which could stretch into 2024, it’s important for small businesses in the automotive aftermarket industry to act proactively and help ensure business continuity using the strategies above.