Too Many Eggs In One Basket?

For many companies, the COVID-19 pandemic has revealed an over-dependence upon their favored suppliers and providers. Whether sourcing raw materials or finished goods, those whose supply chain was broken are experiencing significant disruption.

Over the past decades most supply chain managers have made every effort to minimize cost, reduce inventory and increase utilization. This focus on ever-increasing efficiency has come at the cost of resilience in the face of sudden change. A "Black Swan" event could be cataclysmic.

As a mariner I learned that it wasn't prudent to go to sea without extra batteries (or whatever critical component could disrupt your voyage). The old adage "two is one, one is none" has applicability.

As a Boy Scout I learned to "Be Prepared."

Those truths apply now as supply-chains are rebuilt. If you need some diversity, now is the time to build it. Even with massive reductions in capacity, unexpected trade-lane cancellations/border closures/container shortages/chassis imbalances, etc - there is a way. We are finding those ways every day.

If your business continuity plan has come up short in the logistics sector, SLG can lend a hand. We are in close contact with our trusted partners in Africa and Latin America, where constant change is a challenge to be faced frequently.

Though the seas may be rough, we can weather them. Keep your bow into the seas.