Reliant Logistics Institute


Eight Suggestions to Reduce Supply Chain Disruption


There are numerous potential causes of supply chain disruption, and recent events have significantly increased the demand on companies to handle supply chain disruptions more effectively. 90% of supply-chain executives declared their intention to improve their supply chains’ flexibility, agility, and resilience in 2020; the vast majority of them followed through on this commitment.

Still, many organisations are still having trouble with their supply chains. It’s time to create a supply chain disruption mitigation strategy if yours is one of them. Supply Chain Management Courses in Kerala provided by Institutions like Reliant Institute of Logistics, Kochi can help you to know more about this topic.

What is Disruption in the Supply Chain?

A supply chain is made up of a broad network of businesses and procedures that aid in getting a product to its final consumer, including the company that creates it, the company that transports it, and the company that sells it. When a quick change has a detrimental effect on that process, disruptions happen.

Because supply chains are interrelated, an issue at one level has an impact on all subsequent stages. Customers won’t receive their orders as usual if a timber mill can’t achieve its customary quota due to a labour shortage. One of those clients, a manufacturer, cannot produce enough goods to fill orders, which has an impact on the brick-and-mortar shop who cannot satisfy demand.

Everyone will be impacted unless they take specific actions. The merchant might buy a comparable item from a different manufacturer, while the maker might get lumber from a different supplier. These actions boost the resilience of the supply chain.

Types of disruptions to the Supply Chain

Different Supply Chain interruptions necessitate different solutions. Businesses must be conscious of these possibilities and take them into account when figuring out how to address supply chain issues.

Businesses worldwide are impacted by numerous supply chain disruptions:

  • Economic downturns: Members of the supply chain must deal with shifting product movements as prices and demand change. The way we react to these developments could be disruptive.
  • Pandemics: The capacity of supply chains can be severely constrained by the widespread consequences of a worldwide pandemic or even minor disease outbreaks.
  • Global disruptions: Unpredictable events like the Suez Canal blockage in 2021 or political unrest are also possible.


Local or regional supply networks are also impacted by the following problems:

  • Natural catastrophes: A number of natural catastrophes can swiftly render supply chain components inoperable.
  • Weather: Severe weather can also hinder travel, with flights being cancelled and trucks being kept off the road.
  • Local economies: Changes in the economy may have an impact on local demand and product movement.
  • Labour-related difficulties: Staffing issues and demonstrations, like the recent trucker convoys in North America, might hinder the success of the supply chain.


How to Prevent Supply Chain Breakdowns?

The following are some methods you can employ to lower supply chain risk:

  1. Be Prepared for Chaos

Prepare for the unavoidable. Your supply chain will be disrupted, not if, but when. In a study conducted, it was reported that 75% of participants are having issues with production and distribution. That percentage increased to 100% in the food and consumer products sectors. Be prepared for the unexpected so that you can react to interruptions on any scale.

  1. Regularly Update Your Plans

You must periodically check to see if your plan is still effective. Test runs should be used for evaluations. Imagine a tornado destroying a factory. Purchasing from a different location or business may be part of your backup strategy. Ask the second provider if they can fulfil a potential order by getting in touch with them.

3. Increase Communications

You must be able to interact with your partners and monitor inventories in real time when a disruption occurs. Check your communication channels again to determine if you can make any visibility-related improvements.

To better monitor and track assets throughout their journeys in the supply chain, you may either install real-time messaging solutions for your team or invest in Artificial Intelligence (AI) or Internet of Things (IoT) devices. For example, if a bottleneck develops during transit, you might identify the problem and reroute your subsequent cargo.

Modern digital technologies and sound planning work hand in hand. In comparison to failing enterprises, successful companies are 2.5 times more likely to have sophisticated analytics skills already in place. Logistics institutes in Ernakulam can train you to perform well in this sector.

  1. Always be on the cutting edge

Monitor industry and consumer trends to lessen the effects of disruptions. Holidays, busy times of year, popular internet trends – any of these things can lead to a buyer or supplier deviating from the norm. To make necessary adjustments to your operations, keep an eye on these patterns.

  1. Keep Some Essentials on Hand

Managing supply chain disruptions entails spending money on necessities to keep your business running when disruptions happen. Stock up on the goods you’ll need to maintain operations for a few months if the supply chain is disrupted. Even if one of your suppliers experiences a local or international supply chain difficulty, your company can continue to operate.

  1. Expand Your Supplier Base

Not all of your eggs should be in one basket. Avoid using providers with a single source. If you only use one supplier and they stop doing business, you risk losing all of your customers. Provide options for obtaining goods from various suppliers or regions, or even acquiring goods entirely, if necessary.

  1. Perform a vulnerability assessment

A risk analysis technique called a supply chain vulnerability audit can help you find weak points in your supply chain and locations where your supply contingency plan should be strengthened. According to studies, your vital part supplier, the supplier’s location, and lengthy supply chain lead times are the most important variables that affect vulnerability. Examine your company’s standing in these and other areas to look for opportunities for improvement.

  1. Encourage Your Group

Make sure your management team has the skills and resources necessary to make choices. By analysing the environment and forecasting trends, they ought to be able to weigh trade-offs and priorities. A number of contingency levels that need various responses, such as sourcing from a different site before switching to a replacement product, might be put up. Shipping and Logistics courses in Kochi provided by institutes like Reliant Institute of Logistics gives the aspirant ample information and training to succeed in this industry.


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