One of the far-reaching effects that COVID-19 has had on the world is the supply and demand of raw materials. Lumber, aluminum, steel, plastics, and semiconductor chips are but a few affected items. Parts and machinery are hard to come by on time. Production and manufacturing are still playing catchup from 2020. It affects almost every industry worldwide, raising prices and creating a backlog in the private and mid-size business sectors.
However, despite the havoc, there are some ways you can manage the material shortages and come out on top.
At this point, the consumer base has become pretty familiar with delays and price increases. Even so, make sure you help set realistic expectations by clearly communicating what is happening in your industry.
Let them know when you can get the needed materials in on time. Be upfront when your costs skyrocket, and you have to raise the price on their next order. Ensure they understand when and what to expect for turnaround time.
It’s essential to be realistic with yourself as well. With the current status of supply and demand, anticipate the delays ahead of time and plan accordingly. This way, if something comes in early or the materials are readily available, you supersede both your own and the customer’s expectations.
Even if products, materials, and parts are unavailable or delayed, there’s no reason to let supplier relationships go by the wayside. On the contrary, maintaining solid relationships with suppliers, vendors, and your customer base now in this tough stretch prepares you to keep right on going at full throttle when things go back to normal. But, of course, good relationships also keep you in the loop!
Seek Alternative Methods
Even though you want to maintain good relationships with your current suppliers, flexibility and creativity are also necessary. That means you may have to look around at different options. Different suppliers. Different production methods. Different materials. No one loves change, but the ability to pivot and shift gears has kept many businesses alive throughout other crises in history.
Market Yourself Responsibly
Never stop marketing for your business. In times like these, however, it’s vital to be even more aware of your strategy. Transparency is even essential. Don’t give clients the idea that you can provide things you aren’t able to provide. Instead, let your customer base know what you can do, how you can best help them, and why you still have their back.
Capitalize on the Moment
If some aspects of your business are on halt, take the time to grow other company avenues.
- Do you need to run a SWOT analysis?
- Do you have good customer relations?
- Is your team diverse and inclusive?
- Are you staying true to your core values?
- Do you need to smooth out rocky parts of your workflow?
- What kind of guidelines do you need to put in place for the next crisis that comes your way?
Don’t let this moment in time go to waste. Capture it. Use it. Develop it. Learn from it!
From one team of professionals to another, here at Gillmann Services, we want you to know that “We work for you!” That’s our pledge to all of our clients and candidates. We’re dedicated to supplying quality talent to our customers. Call today!