The supply chain is a complete cycle of the production of an item, from the time of its manufacturing till it is delivered. Almost everything runs over supply chain management and it plays a very vital role in the manufacturing of your product.
The supply chain was hugely affected by the COVID-19 pandemic and it gave, all the eminent names, a good run for their money. Since the pandemic is winding up and most of the industries are going back to normalcy you need to ace the game according to the circumstances. This article will dissect the challenges faced by companies while managing supply chains and how to overcome them. Let’s keep digging!
With the increasing fuel prices, everything around the individual rises causing inflation. The cost of land, air, and water transportation increase with time. While, increased labour cost, global customers surge, new regulations, and rising commodity prices are added to the mix.
Solution: Cost control is about implementing business intelligence when and where required. It starts with a plan and checking up on the plan and making the soundest possible decision on the incoming information. While route optimization technique can be used to cut down the fuel cost by analysing the fastest possible route of delivery.
In the age of digitization, every country in the world is adopting digital trends. But, with every new opportunity comes a potential lethal challenge that needs attention. Here, cyberattacks are a major problem that can plaque an entire industry.
Solution: The solution is to simply ensure that all systems are properly secured. Educating staff and making them aware of the possible cyber risks are also essential to protect supply chain operations.
If you own a large business with widespread branches then juggling between time zones is a matter of concern. As the communication is mostly via email or calls, one must have to wait an entire day to get their request through because of the time difference.
Solution: Companies can develop an outpost of their companies, that will enable the local representatives to timely deal with the issues so it won’t hamper the global supply chain.
For small businesses, it is an absolute challenge to keep the high demand product in stock. With frequent supply chain shortages, you might certainly run off the products in no time.
Solution: To keep the impatient customers at bay, you must keep a check on the inventory register and replenish the on-demand product. Keep alternate suppliers in the loop to source the scarce products and buy in bulk from them.
Also read : mepco online bill
Managing and mitigating risks
Risk is a natural part of any business that cannot be avoided. Economic, environmental, and political risks can affect the flow of goods, hence disrupting the supply chain process.
Solution: Mitigating risks and creating backup plans are essential to ward off any possible risks. It could be done by building contingencies in the supply chain, such as; backup suppliers, alternate shipping options, overflowing storage solutions, and many more. Having a backup plan for risks can help the smooth functioning of the supply chain.
Although English is the basic language of communication when you are dealing with international businesses it is not always the solution and most people don’t understand English and they want someone to speak to them in their local language.
Solution: Employing professional multi-lingual interpreters is the only solution to this challenge. Professional interpreters having industry knowledge will help secure brownie points.
Since the pandemic, the demand for products has vastly increased landing huge shipments of manufactured products on ports. Due to excessive shipments, many ships have to wait in queue for long hours to unload the shipment to the port which is causing delayed shipments and even more increased demands.
Solution: Work with a freight forwarding service, they will not only help to manage and track your shipments but it will also help you seal the best prices deal with the fastest available routes. Alongside, alternative ports will also help to meet your needs and keep you ahead of schedule.
Customer service is the essence of any business or organisation. Providing the right product, at the right time, and right place will not only earn you a good customer but it will also help to establish a great customer-supplier relationship. But, we live in a customer customization era where every customer has different demand and needs which needs to be fulfilled.
Solution: Communicate as much as possible data to the client. By utilizing technologies clients can respond to shifts and changes in real-time that will help in making apt supply-chain changes to ensure smooth product flow.
In short, here are 10 top supply chain challenges
Managing and mitigating risks
The supply chain issues continue to evolve day by day. It has become one of the biggest economy shifters in the past two years. The supply chain management issues have increased twofold during the pandemic, the current issues have been far more intense and complicated which will require tough work and Understanding to manage the weak links. All of these hurdles require a strong team and an even stronger strategy. Understanding the challenges of implementing the solutions beforehand will help to mitigate the problems before they can impact businesses.