Founder of Prima Pavé, CountryBred & The Palatum, shares valuable insights on navigating supply chain disruptions in manufacturing businesses. Due to the war in Ukraine, there was a shortage of raw materials in Europe, affecting his alcohol-free sparkling wine business. To overcome such challenges, storing harder-to-find materials and purchasing larger volumes can help maintain packaging and brand aesthetic, although cash-flow considerations are crucial.
Achieving triple growth in his businesses, the founder suggests producing more frequently throughout the year to manage inventory and cash flow fluctuations, although this requires upfront capital for storing raw materials. Ensuring components of packaging are sourced from reputable suppliers can prevent recalls and enhance margins in the long run. Additionally, adding extra time to shipping timelines and exploring alternative working capital sources can help mitigate delays and congestion at ports.
Forecasting accurately is essential to avoid stockouts and proactively manage supply chain disruptions. Using demand forecasting tools, such as generative artificial intelligence apps, can help build forecasting models based on sales data and integrate with e-commerce platforms like Shopify. Active forecasting can also be beneficial for upcoming marketing campaigns or the holiday season. Retail partners may not always provide sales data, so it’s important to proactively ask for this information to better plan inventory levels.
Overall, being proactive in managing supply chain disruptions can help manufacturing businesses thrive despite challenges. By implementing strategies like storing materials, sourcing reliable packaging components, and leveraging forecasting tools, companies can better navigate uncertainties in the market. With careful planning and a focus on maintaining operational efficiency, businesses can position themselves for success in the ever-evolving manufacturing landscape.
