Price Volatility and Shortages: Stay on top of your supply chain

Businesses rely heavily on supplies for day-to-day operations. Shortages could mean delaying appointments and unnecessary stress in the workplace. Also, if a potential shortage catches you off guard, it could lead you scrambling to source supplies and have an excessive increase to your overhead expenses. We put together three tips on how we stay on top of potential shortages and price volatility. Hopefully you can find some benefit in the information.

1. Have 3 Go-To Suppliers (Minimum)

We all try our best to use one supplier for everything. From paper towels and gloves to sterilization indicators and disinfectants, it makes ordering a lot easier to put it under one roof during normal times. One account representative to deal with, one vendor to keep track of invoices and overall less shopping involved. However, during a time of shortages and price volatility, it could be risky for your business to not have an alternative supplier to turn too. You could end up paying higher prices than your competitors, putting you at a disadvantage due to you having to increase your prices. Additionally, you could be put on supply allocation, which is quite stressful as you have to be the bad guy and start rationing supplies amongst your staff.

We like to have a minimum of 3 suppliers (more if possible) to shop from even during normal times. It not only helps with maintaining a solid supply chain, it also helps with keeping your vendors in check to ensure you are always getting the best available rates possible. Sure, it's more work in the short term having to stay up to date with multiple suppliers. However, in the long term, you will reap the benefits of low overhead supply expenses. As a bonus, when your competitors are stressing out trying to deal with allocation and high prices during a time of market volatility, you can carry on as usual.

2. Monitor Inventory & Shop Often

When your medical supply essentials are in short supply or when prices are fluctuating, it's important to keep a close eye on your inventory and shop as frequently as you can to avoid getting caught paying higher prices or worse, running completely out. There are benefits to shopping often and it doesn't always have to be a chore.

• Build stronger supplier relationships: Regular communication with your sales representatives helps establish a stronger partnership rather than simply being another account. A trusted supplier relationship can provide valuable insight into product availability, upcoming changes, and potential alternatives.
• Identify pricing and usage trends: Monitoring your inventory and purchasing patterns allows you to recognize price increases, changes in usage, and potential supply concerns earlier. This gives you more time to make informed decisions, such as adjusting purchasing plans or increasing stock levels for frequently used items.
• Stay informed about availability and alternatives: Regularly checking supplier websites and inventory levels helps you understand product lead times, identify items that may be affected by shortages, and find suitable alternatives before a supply issue impacts your operations.

3. Ask Account/Sales Reps for Insider Information

Don’t be shy to ask your account reps if they have any insider information of what is happening behind the scenes with their own supply chain. Account reps take part in sales meetings on a weekly basis and are updated by their management on any product offering interruptions. Good account reps will also know if there are alternative products available that will suit your needs. The sooner you have this information, the quicker you can act to stay ahead and limit any future headaches.

Staying Ahead of Supply Chain Challenges

We practice these strategies on a routine basis, and they have become an important part of our standard operating procedures. By staying connected with suppliers, monitoring inventory levels, and planning ahead, we are able to better anticipate potential challenges and help ensure a reliable supply chain for our clients.

Supply chain disruptions and price fluctuations are not always predictable, but having a proactive approach can make a significant difference. Taking the time to understand your purchasing patterns, build strong supplier relationships, and identify potential issues early can help minimize stress and keep your organization prepared. This is why we offer our clients a free consultation to identify potential opportunities for cost savings, improve purchasing strategies, and strengthen their overall supply chain management.