By Josh Fischer
In the last several years, we’ve learned that what we once thought of as a stable, reliable supply chain is, in fact, quite fragile. Major disruptions—from the pandemic to July 2024’s CrowdStrike outage—have caused years of complications, hugely impacting the supply chain’s ability to get both needed and desired products into the hands of consumers.
Unfortunately, with continued global unrest, more sophisticated cyberattacks, and the lack of widespread technology adoption, these disruptions will likely increase.
As an SMB trapped in this uncertain reality, it’s imperative that you equip yourself with the tools that will help you build a resilient supply chain, optimize your inventory management processes, and improve performance at every level.
How to fortify your supply chain for future disruptions
While busily working to increase sales and staying on top of your inventory, don’t lose sight of the supply chain challenges that are yet to come. Here are some suggestions for protecting your supply chain from future disruptions.
Diversify your suppliers
Many buyers are opting to order more goods from a bigger pool of suppliers. Should port congestion, transportation delays, communication breakdowns, and more continue to plague the supply chain, these buyers—and you—will have multiple suppliers from whom you can purchase your goods and materials.
Do business closer to home
Nearshoring or reshoring is another smart option for fortifying your supply chain. Choosing to produce goods or to buy from suppliers closer to your home base reduces the risk of being harmed by supply chain disruptions.
A recent Manufacturing Today article suggests that reshoring is “increasingly seen as a strategic business decision.” Though there are costs, risks, and sustainability factors to consider before going this route, the factors are often mitigated by the potential savings from “reduced shipping costs, lower tariffs, and avoiding currency fluctuations.”
Embrace advanced technology
It’s surprising how many businesses put off replacing aging, disconnected technology. Many manufacturers and distributors are lagging in implementing technology like cloud computing. This lack of a modern infrastructure meant many supply chain businesses had difficulties in fulfilling orders, maintaining communication, and ensuring accuracy when the pandemic and CrowdStrike incident occurred. It also exacerbated inventory demand uncertainties, labor shortages, increased shipping costs and delays—all of which negatively affected consumers.
By implementing modern technology, such as AI-driven demand forecasting and supply chain management solutions within comprehensive inventory management software (IMS), you’ll make wiser buying decisions and increase productivity, which will ultimately produce happier customers.
What SMBs can do to recover from the latest disruptions
The latest supply chain disturbances—including labor strikes, manufacturing delays, stockouts, and ongoing geopolitical tensions—are forcing you to get creative in order to meet the increased demand.
One of the trends we’re seeing for SMBs in the business to consumer and direct to consumer space is the offering of post-purchase promos on their e-commerce order confirmation pages (such as a special discount on items that are often bought together, a reduction in shipping fees, or both) to customers who have already purchased a product.
For customers who have yet to purchase from you but are considering it, it’s also a smart decision to offer them special deals. Discounts on first-time purchases, BOGO deals, exclusive access to certain products, or slashing shipping for orders over a certain amount may convince them to click the “buy now” button.
Just as your customers will appreciate the perceived savings, you’ll appreciate adding items to a package you’re already preparing and shipping at a cost.
While these strategies can help you navigate immediate supply chain challenges and maintain sales momentum, there's an unexpected silver lining to the recent disruptions. The same supply chain issues that forced businesses to adapt have also created a unique opportunity for SMBs to capture market share from larger competitors.
Supply chain woes erode trust in big brands
By countering supply chain disruptions with creative strategies, you’re setting yourself up for success. But these disruptions generated another set of challenges–for your larger competitors.
The supply chain delays in recent years kept in-demand products like toilet paper, medicines, infant formula, and more from reaching store shelves. These delays made many consumers question our reliance on major brands, making them look deeper into corporate ethics, quality, overproduction, sourcing of materials, sustainability, and waste.
What they found were valid reasons to switch from larger, impersonal businesses to smaller, more local businesses. According to Cin7’s holiday shopping research, 39% of holiday shoppers were planning to buy from small businesses, and we anticipate buyers continuing this trend past the holidays.
To capitalize on this trend, small businesses need to establish a strong online and local presence, offer limited-time deals, and carefully manage their inventory to avoid stockouts. Small businesses, by virtue of their size and flexibility, can also cater to specific requests, like special orders and customization, and respond quickly to issues often overlooked or ignored by bigger companies.
Taking these steps can help small businesses like you attract shoppers, convert them into loyal customers, and beat the competition.
Staying ahead during disruption
Supply chain disruptions are no longer just occasional hurdles—they're the new normal in today's business landscape. But with the right tools and strategies, you can turn these challenges into opportunities for growth. Small businesses that invest in robust inventory management systems aren't just surviving disruptions—they're thriving through them, capturing new customers, and building lasting loyalty.
Cin7's inventory management software gives you the visibility, control, and agility you need to stay ahead of supply chain challenges. From predicting stockouts before they happen to optimizing your ordering patterns, our platform helps you make data-driven decisions that protect your bottom line. Join the thousands of successful SMBs who have transformed their operations with Cin7. Schedule your personalized demonstration today and take the first step toward supply chain resilience.
About the Author
Before joining Cin7, Fischer served as the Director of Product for Retail-Commerce at Acumatica Cloud ERP. There he led the design and development of DTC and B2B commerce oriented solutions including native integrations with best-in-breed e-commerce platforms and Marketplaces and supply chain management features for brands using modern commerce tools. He brings 20 years of diverse experience to Cin7, having owned and led a digital agency, implementing e-commerce solutions for national brands as well as designing and delivering commerce oriented features for back-office software solutions.
