If there’s one thing businesses have learned from operating over the past few years, it’s that you should expect the unexpected! The ability to predict next month’s sales based on historical data becomes quickly irrelevant when regulations and mandates change your business model, lead times, and demand.

Just when you start to think things may return to normal, truck convoys show up to block major roadways across the globe and plan future protests over the coming weeks. While some of us may be on board with their cause, we must still find a way to fill orders when supply chains are interrupted.

Inflation, supply chain disruption, rising costs of goods and labor all put small businesses at a great disadvantage; if they can’t afford the fancy tools that keep larger businesses running smoothly, they’re at a great disadvantage. Using a perpetual inventory system to keep real-time records across company-wide is just a benefit of using software over inexpensive, Excel spreadsheet data tracking methods.

How can you reign in costs and tighten up production to stay afloat through this next tidal wave?

  1. If you use inventory software, you should be able to run reports that offer analysis from many different viewpoints to identify where waste or bottlenecks may be costing you time and money. Implementing lean management principles to continually reduce waste can improve your ROI.
  2. Identify alternative suppliers for materials or alternative materials. Is there an equivalent to any of the materials you need that can be had at a lower cost or faster lead time from another supplier?
  3. Offer volume discounts to move products off your shelves and increase cash on hand.
  4. Consider local shippers or drop shippers when delivery to your customer becomes a challenge.
  5. Hire a logistics consultant to evaluate your business. They bring advanced knowledge of many different types of industries including the types of methods and systems that improve production and save money.
  6. Update your policy to reflect realistic delivery times to avoid customer dissatisfaction. Customers tend to be more understanding of delays when they are told what to expect in advance. Ongoing communication will also be appreciated, and you will likely have repeat customer service as long as you are attentive.
  7. Stay on top of the latest news and observe what your nearby competitors are doing. Two years into this pandemic, we’ve learned waiting it out is not an option.

It’s a particularly difficult time to be a startup, yet startups do often possess the energy to go full force ahead to get established. If a new company can last through the challenges we’ve faced since 2020, it’s likely they have the staying power to endure long after this nightmare ends.

Labor shortages have caused speculation about machines replacing humans for repetitive tasks. We’ve already seen a rise in automation in manufacturing over the last few years. Realistically, the government made the situation worse by paying people more to stay home. The challenge for employers is they now must pay more for quality workers. If you have good help, make an effort to hold on to them.

Let’s hope spring brings more than rain and flowers. Most small businesses owners could use a ray of hope moving into mid-2022.