5 Ways to Stay Ahead of Supply Chain Issues in the Franchise World

So, you're having supply chain issues.

Lets go to an all too common scenario lately: your brand is generating interest, you have qualified Franchisees ready to go, your preferred franchise construction rollout program is ready to start building, and your accounting team is dancing with joy. You follow your new franchisee schedule and go to order Inventory, only to find that they are back ordered, discontinued, or the dreaded ‘we do not know when, or if, this item will be back in stock’.

*gulp*.

Since these unprecedented and downright weird times are here to stay, it’s time to reevaluate your Inventory Strategy. Here are 5 ways (and a flow chart) to work around Supply Chain issues for your emerging Franchisees - getting them open and operating sooner.

1. Order Ahead

The simplest way, and first step, to avoid delays is to order ahead. With lead times going from weeks to months, it is time to revisit your previously trusted schedules to accommodate for this lead time.  It may not be feasible in all scenarios, but it is the easiest way to stay ahead.

2. Share your Forecast

Sharing your forecast with manufacturers is an underrated way to prepare. Many manufacturers will be excited they have been chosen to support your growth and will appreciate the advanced notice. After all, you are trying to give them consistent business! While it varies depending on the item in question, forecasting the upcoming 6 months/year together will always be appreciated. Depending on their capabilities they may set up a special program for you – guaranteeing a certain stock per orders received, bulk discounts, etc.

Worst case scenario they can’t help right now – but always worth setting up a call!

3. Specify Alternates

While not ideal, having some approved alternates for your franchisees can make or break a schedule in a time of need. Having options, coupled with the previous two points, will drastically increase your odds of staying on your Critical Path as you navigate the new build process. This is especially critical if you do not have the resources to order in bulk; or if it is an item the franchisee provides themselves. Giving a few options can also be a great way to give the franchisees a way to show their personality while staying on brand.

4. Build an Inventory

The optimal way to stay ahead? Build an inventory! Nothing will beat the certainty (and sanity) of having the tools to make your franchisees thrive stocked and ready to go. By ordering larger quantities, you may also qualify for bulk savings and save on shipping. This will also ensure consistency across your new locations. While this is dependent on your ordering process, available space, and relationship with your franchisees, it’s a sure way to be prepared!

5. Utilize an Inventory Consolidation Program

If you love the idea of building an inventory, but don’t know where (or how) to start, outsource it! There are many manufacturers that offer their own Inventory Consolidation Program. If you utilize a vendor for multiple items, reach out and see what they offer. Other types of consolidators take this approach backwards, and can order related items for you; housing them onsite.  There are many different solutions out there depending on your needs!

If this sounds appealing to your current set up, but you don’t know where to start, reach out to us! Not only do we have warehousing capabilities, we have the connections and resources to find the best fit for you – even if it’s not us.

Conclusion

With Covid-19 variants affecting manufacturing industries nationwide, supply chain issues will inevitably continue to change the mold of the Franchise Buildout world.  By taking these 5 steps you can ensure you are doing what you can to get your Franchisees open and operating sooner - a move they will appreciate for years to come!