Supply Chain
Article

6 Ways to Overcome M&D Supply Chain Obstacles

by
Clayton & McKervey
November 1, 2022
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Summary

With supply chain issues at the forefront of everyone’s minds what are some possible solutions? Clayton & McKervy may have 6 solutions.

When we talk about the manufacturing and distribution supply chain, we mean raw materials and finished goods that travel back and forth for thousands of miles before arriving at their final stop. These trips include a complex mix of trucks, trains, container ships and storage facilities plus countless touches by humans and computers. In this overview, we will look at the supply chain obstacles facing mid-market manufacturing and distribution companies and what businesses like yours can do about them.

1. Pricing is at the center of everything.

When it comes to understanding your supply chain risks, everything eventually points back to pricing and cash flow. Supply chain costs can show up in many direct and indirect forms:

  • Raw material costs including seasonal price changes
  • Fuel costs
  • Warehousing costs
  • Packaging costs
  • Changes in the terms and conditions of sourcing contracts
  • New or changing taxes at the destination or point of origin
  • Labor costs for factory, handling, or transportation workers and premiums for labor shortages

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Clayton & McKervey
Clayton & McKervey

Clayton & McKervey is a full-service international and domestic public accounting firm specializing in tax, assurance, accounting and consulting services for closely-held growth-driven businesses like yours.

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