Supply Chain Disruptions: Domino Effect Often Starts at the Warehouse Level

Posted by Chris Scullin

in Warehouse

Updated August 9th, 2023

Table of Contents

Disruptions in the supply chain have far-reaching consequences. A single supply chain disruption spurs a domino effect, gradually impacting businesses along the path—all the way to the shareholders. In fact, a recent report from the World Economic Forum estimates that supply chain disruptions cut approximately 7 percent of a firm’s shareholder value, based on research from Accenture.
These value impacts actually result in a decrease in shareholder value about 10 days before supply chain disruptions are even announced, due to speculation and other communication. And they can have long-lasting impacts beyond just a few hours or days. Share prices typically don’t begin bouncing back until about three months after a disruption.

The Role of the Supply Chain Manager Critical to Resolving Disruptions

Typically, the longer the disruption lasts, the more negative the overall impact. The ability to quickly and adequately respond to and resolve supply chain disruption issues are key components in the role of the supply chain manager. This is just one reason why the role of the supply chain manager is so complex—there’s a need to have a constant backup plan among the dozens of contacts, suppliers, vendors and customers these professionals must coordinate on a day-to-day basis.
Supply chain disruptions can have devastating economic impacts which can span multiple industries. Emerging leaders in the field of supply chain management are needed to adequately manage this process, and they’re in high demand. That’s why we compiled a list of the Top 25 Supply Chain Management Degree Programs in the U.S.

Preventing Warehouse-Origin Supply Chain Disruptions

Supply chain disruptions can originate at any point during the production, distribution and sales cycles. But inefficiencies in warehouse management can sometimes be the catalyst to start the devastating cycle of imploded share values in motion.
To prevent supply chain disruptions at the warehouse level, you need an automated solution which can speed up processes while simultaneously reducing error. And that’s exactly what our warehouse barcode label solutions provide (learn more about what to look for when buying barcode labels). Durable, readable labels, completely customized to your needs, are the foundation for more efficient processes.
A customized warehouse label solution will help you reduce waste, streamline the flow of shipping and receiving and keep a firm grasp on space utilization. All of these drastically reduce the likelihood of a supply chain disruption originating from your facility. Instead of losing valuable relationships by starting a domino effect of supply chain disruption, you can strengthen relationships with clients and vendors by providing an added safeguard against unexpected disruptions with a warehouse management system that includes durable warehouse labels.