28 Jan 2025 Weathering Supply Chain and Logistics Delays with Your Association
For most organizations, the pandemic in 2020 gave them the first hints of serious supply chain disruptions. Since then, severe weather events, geopolitics, and other global factors have continued to cause logistics delays. Moreover, these concerns are expected to continue in 2025 and the remainder of the decade.
How can your association or nonprofit handle these issues with a minimum of damage? After all, it’s not just your association that may be affected, but your members and your industry, especially if you rely on foreign raw materials or manufactured products like medical equipment or scientific instruments. Here are six tips for building resilience to this phenomenon.
Assess Current and Recent Past Supply Chain Problems
The first step is to evaluate the current situation for your unique association and for your industry in general. What supply chain or logistics disruptions have you recently experienced? What are the most pressing problems for your members in this area?
Monitor Inventory More Carefully
If your organization or your members rely on inventory of supplies, you can no longer afford to be using just-in-time stocking. This holds true for finished merchandise you sell for fundraising as well as for chemicals or mechanical parts used in the practice of your profession.
There are a couple of strategies you can use to improve inventory management:
● Switch to real-time inventory monitoring for the most up-to-date data.
● Use inventory software that can be integrated with other operation functions.
● Partner with a logistics expert that can help with warehousing, distribution, and other 3PL tasks.
● Decide on critical thresholds for alerts when inventory becomes low, so you don’t run out.
Stock Up on Key Materials or Goods in Advance
Another inventory strategy is to keep a larger stock of raw materials or products on hand than you might normally. This involves some gambling, as you may not need your supply as quickly as you originally thought, or the price may go down.
If your industry deals in huge volumes of certain commodities or metals, you may be able to purchase a futures contract as a commercial entity (versus an investor or trader). This locks in the price in case the cost goes up later in the year. Working with a knowledgeable broker can help make your contracts less vulnerable to disappointment, and they can identify markets (e.g., OTC for agricultural products) you might not know of otherwise.
There are expiration issues to be contended with for certain items, such as pharmaceuticals, food, and agricultural products. Using predictive analytics can help with this by utilizing past trends and most likely future scenarios to arrive at numbers you’re comfortable with to avoid waste.
Diversify Partnerships and Consider Nearshoring
If you order or ship with one company, now is the time to think about adding to your partners. It’s too risky these days to have all of your eggs in one proverbial basket.
Consider having a back-up or supplemental supplier. If you’re assembling materials halfway across the globe, nearshoring may be a safer option, as well as of course making items in your own country. The latter may be a better choice for US organizations if proposed tariffs take too big of a bite out of cross-border commerce. It may also appeal to members who value sustainability and more earth-friendly logistics.|
Collaborate with Logistics Experts Who Provide Greater Visibility
The top logistics companies today offer high levels of visibility to their clients. This translates to real-time geolocation tracking, so you can see where your shipment is at any point in time. Should a storm or other disaster cause a delay, you can make informed decisions about changes in order to minimize problems.
For small nonprofits, this may not be much of a concern. However, international associations may enjoy this improved transparency when shipping items ahead of a major trade show or meeting. Additionally, members who rely on logistics for work will appreciate fewer delays and lost orders.
Create Contingency Plans and Risk Management Strategies
Finally, it’s wise to develop an emergency plan for the most likely interruptions to your supply chains. Decide how much risk is tolerable and how you would handle worst-case scenarios like a typhoon, war, or another public health emergency.
This is another area where predictive analytics are essential. There will always be unexpected disruptions, but you can make better decisions based on the most probable hurdles when using the right data.
One vital aspect of supply chain and logistics management is financial services. Jaffe Management can assist your association with that, along with membership administration, meeting planning, and volunteer development. Call us at 212- 496-3155 or reach out at info@jaffemanagement.com to learn more.