We all know that during a pandemic or some unprecedented event occurs, there is a gap occurred between demand and supply. Sometimes because of high demand, shortage of labor, resource, manufacturing product, or by-merchandise shipping cause a supply chain crisis.
Many products remain at Port and wait for the transfer to their destination. Just see nowadays how due to COVID 19 there is a supply crisis in the world.
Those businesses that are highly dependent upon one source or nation for their product or service found much uncertainty in their supply gap.
Because of this uncertainty, we can see high inflation or a decrease in the production of products.
For example the impact of chip shortage on the automobile industry or mobile market. Many companies decrease production because of this uncertainty.
So what is the solution, here there are steps to decrease the demand-supply gap crisis.
Diversification
If we want to decrease the demand-supply gap crisis, then understand the principle of diversification of our supplier. Never depend upon one source from which we get raw material or finished product.
If any uncertainty happens we can easily divert our supply from the affected or problematic country. So it’s the basic rule to get rid of the supply gap crisis by putting our distributors or suppliers to different locations or nations.
Crisis Fund
Many big companies put the extra money to solve the situation in supply-side crisis occurs due to unusual events. They always put some money to tackle the demand supply gap and be ready to give satisfaction level to customers.
But those companies which are not prepared for this fall under crisis or sometimes they enter into bankruptcy. So put the extra money to solve the unexpected event crisis to remain more sustainable.
Plan ahead
We all know the importance of planning whether it’s business or any other sector. So always plan your supply what you want before and in the future.
Many companies always make sure what amount of stocks they have to put for the future without suffering lag in the demand-supply gap.
Those who don’t use these strategies to arrange resources to get rid of the demand-supply gap, after some time when unprecedented conditions arise they collapse and don’t remain sustainable.