What’s the story: Disruptions, such as labor shortages and emerging geopolitical risks, may force you to swiftly shift your business strategy—opening the door to an influx of new risks. While you may not be able to prevent the next global supply chain challenge, you can be better prepared to handle it by leveraging these 4 tips to improve your resiliency.
Why it matters: Having a plan for potential risks is critical to ensure the resiliency of your business. Supply chain disruption is inevitable but that doesn’t mean you have to incur more risk because of it.
Consider the following:
Build a Business Continuity Plan
Always have an actionable plan B to quickly address issues that could potentially set your business back, whether that’s having extra inventory on hand or a list of back-up suppliers.
Identify Reoccurring Risk
Help avoid future potential losses by determining which carriers, products, vendors, etc. are driving your highest number of claims. Put fraud measures in place to flag repeat offenders.
Read the Terms & Conditions
Don’t get caught in the fine print of your contracts. Make sure you fully understand who owns the risk between buyer and seller, so you never leave yourself open to a major loss.
Understand Your Insurance Policy
Review your existing insurance policies to understand your deductibles as well as any limits and gaps in coverage. Your risk profile is constantly changing, so make sure it’s up to date for your current business protection needs.
Contact a UPS Capital® representative to discuss your evolving supply chain needs.