There’s something a bit worse than a supply chain shortage whenever you are in the business of providing goods and services, and that is a supply chain backlog. This is where the orders have been fulfilled, shipped, and are reading to go and be sent out. However, they aren’t moving forward and aren’t getting into the hands of the customers and the people who need them the most.
In order to combat a supply chain backlog, you need to do more than you normally would as a business if you were facing another supply chain related problem. Backlogs can get out of control and insurmountable fast, so moving quickly and taking the backlog one piece at a time is going to be what works for your business.
Figure Out Where the Bottlenecks are
Even with the massive demand for your products, you might think that the backlog is simply caused by your customers ordering a bit too much. However, backlogs often have a lot of different bottlenecks and problems that are preventing your business from getting the orders out. While it might seem like only one thing is causing the problem, a closer examination is almost always going to show that more factors are at stake.
So make sure that you slow down and examine every cause of the backlog. For example, your business might have a backlog due to a worker shortage so there aren’t as many hands as there used to be, as well as a lack of space. Maybe someone placed a big order that your current space for storage just couldn’t handle, or the lack of workers is causing you to get less shipped out each day, so there’s a pileup.
Analyze the situation and figure out what factor or factors are causing the buildup for your business, and then take each one on slowly and one at a time.
Solve one Problem at a Time
While it can be tempting to panic and try to solve the entire backlog all at once, you need to look at all the bottlenecks you just discovered and figure out which ones you can solve. For example, in the above scenario, the main bottleneck problem is being caused by a lack of workers, and that is trickling into all of the other bottlenecks and causing a massive backlog.
So, now, you need to focus on fixing what you can, and that might just be the bottleneck of not having enough workers. Focus on hiring as many workers as you can, doing whatever you can, and then see if the other bottlenecks clear up now that you have more hands on the problem. If so, great, and if not then move on to the next problem you can solve.
Put it in the Vendor’s Hands
If you are using VMI systems (vendor management systems) to take care of your business, then the vendor is going to work with you to prevent too many supply chain backlogs from occurring. They don’t want any sales to be lost just as much as you do and will work to get their goods and services into the hands of your customers. While Vendor Management Systems aren’t going to be able to solve everything, they can help mitigate some of the stress caused by supply chain backlogs.
Take it Slow and Fix what you can Fix
One of the biggest problems that you can have whenever a supply chain backlog happens is that you get very overwhelmed and try to move way too fast to fix the problem. However, sometimes fixing a supply chain backlog is out of your control. For example, world events or other bigger issues might be causing the problem, and that’s just something that your business can’t make go away.
So, you need to take it slow and ensure that you are fixing what you can fix. Take managing your backlog nice and slow and don’t get overwhelmed, because if you spend too much time trying to unclog your backlog and get things moving again, you will often make it worse.
Instead, communicate with your customers and do what you can. It can seem counterintuitive, but sometimes moving slowly is the best way to clear your backlog and get your entire business back to 100% production of your goods and services. Plus, a supply chain backlog won’t last forever, so just try to weather the storm, and then your business will come out the other side.
Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.
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