Did you know the current US inflation rate is nearly 8%? This has caused a large number of problems across nearly every industry, specifically supply chain issues. However, you don’t have to fall victim to these supply chain trends.
Let’s explore everything you need to know about supply chain disruptions and inflation so that you can manage them appropriately.
What Are the Disruptions Commercial Property Managers Face?
Due to the increasing inflation rate, commercial property managers are facing a variety of supply chain disruptions. These include longer lead times on goods and services, higher prices for raw materials, and reduced availability of certain items.
Additionally, due to the pandemic, many companies have experienced financial challenges that have caused them to reduce their workforce or close entirely. This has further increased the risk of supply chain disruption.
Put simply, global supply chain issues are in effect for commercial property managers. This has made it more difficult than ever before to maintain business operations.
What Are Some Strategies to Handle These Disruptions?
Fortunately, there are several strategies commercial property managers can implement to manage their supply chain disruptions and inflationary pressures. These are key when it comes to ensuring the continued success of your business.
Let’s take a closer look at some of the most notable.
Maintain Strong Relationships
It’s crucial to build strong relationships with suppliers to ensure a steady stream of supplies throughout the year. Additionally, it’s wise to have backup suppliers in case of a disruption.
This will allow you to quickly switch suppliers if needed. Ideally, though, you should maintain strong professional relationships with your existing suppliers. This will allow you to prevent supply chain interruptions.
Even a short period of downtime could lead to tens of thousands of dollars in lost revenue. So, be sure that you keep this in mind. Otherwise, you may find yourself struggling to catch up.
This is especially true for commercial property managers that do not have an extensive revenue stream.
Negotiate Contracts and Pricing
When negotiating contracts, make sure that the contract includes a price protection clause.
This will prevent your supplier from drastically increasing prices in response to inflation. Additionally, consider asking for discounts or lower prices if possible.
This can provide some financial relief during difficult times. It’s worth considering, though, that your suppliers may not be in a financial position to negotiate.
In this scenario, avoid being pushy or demanding a discount for their services. This could lead to the erosion of your relationship with them. Over time, it will also do more harm than good.
Be Proactive in Tracking Supplies
It’s important to be proactive in tracking your supplies. This will help you identify any potential supply chain disruptions before they become a problem.
Additionally, it can provide insights into supplier performance and trends that could affect your business.
Consulting your analytics can help you emphasize supply chain decisions that work and avoid those that do not. Make it a priority to understand as much about your performance as possible.
It’s also recommended to audit your analytics on a regular basis. After all, changes can happen in a short period of time. If you aren’t ready to adapt, you may not be able to accommodate them.
This can go a long way when it comes to helping you navigate obstacles in the future.
Don’t Be Afraid to Consult a Professional
One of the biggest mistakes that commercial property managers make is trying to manage supply chain disruptions and inflation on their own. It’s important to remember that this can be a difficult and time-consuming task, so don’t hesitate to consult a professional if needed.
There are numerous professionals who specialize in supply chain management, so reach out for help if you need it!
Learn More about Strategies to Handle Disruptions
What Should I Look For in a Supply Chain Management Professional?
As you might guess, it is imperative to consider their past reputation.
Past client feedback will help you avoid working with people who don’t meet your needs. It’s also important to see how they respond to customer complaints. Of course, you should also hire someone with a substantial amount of experience.
They should have a proven track record of success if you are to hire them. It can often mean the difference between whether or not you get the results you want.
Have they worked with people like you in the past? Hiring the wrong management professional can sometimes do more harm than good.
Be sure to take a look at their billing structure. This will help you avoid financial surprises in the future.
Never work with someone you are not comfortable communicating with. If they don’t seem easy to get in touch with, move along with your search. The last thing you want is to work with someone who isn’t there when you need their professional support.
This will lead to you having to overcome issues on your own. Unfortunately, this will likely take a substantial amount of time and resources. You may not even be able to fix the problem yourself.
Supply Chain Disruptions and Inflation Can Seem Overwhelming
Commercial property managers have a lot to consider when it comes to managing supply chain disruptions and inflation. However, with the right strategies in place, you can maintain a steady stream of supplies and keep your costs under control.
Want to learn more about what we can do? Be sure to reach out to us today and see how we can help you.
Contact us if you want to learn more or have any questions about emerging trends in real estate.