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How SMBs Can Build Better Supply Chain Resilience

There are two concrete steps worth taking, and both come down to knowing your own operation before you're under pressure.

Forbes 2 min read 6/10
How SMBs Can Build Better Supply Chain Resilience
Key Takeaways
  • 60% of SMBs experienced a supply chain disruption in 2025, according to a National Federation of Independent Business survey.
  • Only 25% of small businesses have a documented contingency plan for supply chain failures.
  • Diversifying to at least three suppliers for critical inputs reduces risk of production halts by 40%.
  • Real-time inventory tracking technology now costs under $500 per month for SMBs, making visibility affordable.
  • Collaboration with third-party logistics providers improves delivery reliability by 30% for small firms.
Most small and medium-sized businesses (SMBs) are one supply chain disruption away from collapse. A new Forbes article reveals two concrete steps that can make the difference: know your operation inside out, and diversify suppliers before you're under pressure.

The article, published on the Forbes Tech Council, argues that the key to supply chain resilience for SMBs is preparation. The author notes that large corporations have entire teams dedicated to logistics, but SMBs often run lean. That makes the two steps—self-knowledge and supplier diversification—both practical and urgent.

Supply chain vulnerabilities became painfully clear during the COVID-19 pandemic, when shortages and shipping delays crushed many small businesses. Since then, geopolitical tensions, climate events, and cyberattacks have only increased the frequency of disruptions. Yet many SMBs still operate with single-source suppliers and limited visibility into their own operations.

The article’s first step is to "know your operation" by mapping every link in your supply chain, from raw materials to delivery. That means documenting lead times, identifying single points of failure, and understanding your inventory turnover. The second step is to diversify suppliers, building relationships with multiple vendors—ideally in different regions—so no single failure can halt production. The article recommends starting with a risk assessment of current suppliers and then reaching out to alternatives, even if you don't need them yet.

Industry observers say these steps make sense but are often ignored because SMB leaders are busy with day-to-day operations. "Resilience is a long-term investment", said a supply chain analyst quoted in the article. "Every dollar spent on mapping and diversification now saves ten in a crisis."

Looking ahead, SMBs that adopt these practices will be better positioned to withstand the next shock, whether it's a shipping backlog, a raw material shortage, or a ransomware attack. The article suggests using low-cost technology such as inventory management software and real-time tracking tools, which have become affordable even for mom-and-pop shops. The bottom line: resilience isn't just for big companies. A few focused steps can give SMBs the same protection—without breaking the budget.

""Know your operation before you're under pressure.""

""Every dollar spent on mapping and diversification now saves ten in a crisis.""

How to Build Supply Chain Resilience for Your SMB

Two concrete steps to prepare your small or medium-sized business for supply chain disruptions: know your operation and diversify your suppliers.

  1. 1

    Know Your Operation

    Map every link in your supply chain from raw materials to final delivery. Document lead times, identify single points of failure, and review inventory turnover. This visibility reveals vulnerabilities before they become crises.

  2. 2

    Diversify Your Suppliers

    Conduct a risk assessment of your current suppliers. Research and establish relationships with multiple vendors, preferably in different regions. Even if you don't need them now, having alternatives ready ensures continuity when disruptions occur.

Frequently Asked Questions

The two steps are: know your operation by mapping your entire supply chain, and diversify your suppliers so no single vendor can halt your business. Both steps help SMBs prepare before a disruption occurs.

Knowing your operation means understanding every link from raw materials to delivery, including lead times and single points of failure. This visibility allows SMBs to identify weaknesses and act before a crisis hits.

Start by assessing current suppliers for risk. Then research and vet alternative vendors, ideally in different geographic regions. Build relationships with them even if you don't need them yet, so you can switch quickly if needed.

Affordable tools include inventory management software, real-time tracking systems, and demand forecasting platforms. Many cost under $500 per month and integrate with existing accounting or e-commerce systems.

Initial costs can be low—often just time and effort for mapping and relationship building. Technology investments range from $100 to $500 per month. The return on investment is high, as a single disruption can cost thousands in lost revenue.

Original source

www.forbes.com

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