1. Supply chain have seen increasing challenges to create, and keep, efficient and effective supply chain methods. Here we discuss eight of the biggest supply chain challenges.
- Customer service - Supply chain management is all about providing the right product in the right quantity to the right place and the right time. Seems simple, but can get complicated quickly.
- Cost control - Operating costs are under extreme pressure by rising energy or fuel and freight costs, greater number of global customers, technology, increasing labor rates and new regulations and rising commodity prices.
2. Supplier/partner relationship management
- Finding suppliers
Of all the challenges procurement professionals face with suppliers, simply finding them was the biggest one. Regardless of whether they were looking overseas to China or elsewhere, finding suppliers who could provide the products they need according to their specifications was a struggle.
- Supplier relationship management and performance evaluation
Once they found the right suppliers, building a relationship and everything that goes along with it seems to cause some headaches. When mentioning performance evaluation, quality was the standard most frequently mentioned as a sticking point.
- Evaluating potential suppliers and selecting the right one
Again, the challenges don't end once potential suppliers are identified. Choosing the right selection criteria, finding the relevant supplier information and collaborating on supplier evaluation were all named as difficulties in this area.
3. Managing Inventory
Managing inventory goes beyond counting how many boxes sit in the warehouse. This is an offensive action. Maintain sufficient inventory at hand so that all client and client expectations are met. The right time prevents delays. Suitable quantities prevent inadequate inventory while minimizing the impact on profits.
4. Fast Changing Market
The fast-changing consumer market also brings with it supply chain management challenges. the product has a shorter life cycle as market demands change quickly. Companies are under pressure to keep up with the latest and innovative trend by introducing new products, while keeping their overall production costs low as they understand that the trend will not last for a long time. It also demands a flexible supply chain that can be used for other product manufacturing and for future projects.
5. Risk mitigation
Companies that are too dependent on one supplier are vulnerable if the supplier is unable to meet the demand. Supply chain managers must reduce the risk that the Asian earthquake will not stop production lines in North America. Sufficient backup plan helps ensure that the company's supply chain is flexible to handle changes. For example, if a supplier becomes a bankrupt, the company's supply chain continues without profit being affected.
6. Quality & Compliance
Product quality often occurs manually with compliance. Companies need to ensure that they meet local and international regulatory standards in the manufacture, packaging, handling and delivery of their products. In addition to conducting quality control and security testing, companies are also required to provide compliance documents such as permits, licenses, and certifications that can cope with them and their supply chain management systems.
7. Weather/Natural Disasters
Something not even the most experienced or information fueled store network supervisor can anticipate is a sudden change in climate or cataclysmic event. These occasions can directly affect the framework important for transporting cargo. These concealed dangers can become possibly the most important factor out of the blue and are known for their unforgiving nature. Despite the fact that they are famously eccentric, having an arrangement set up can take the weight off the store network and maintain a strategic distance from an excessive number of interruptions. The test is concocting a debacle arrange for which all connections all through the production network can rely upon and hope to take after if an issue were to emerge. .
The arrangement will depend on close correspondence and coordinated effort between every one of the gatherings all through a supply organize. Understanding what sort of climate is well on the way to affect a particular production network ought to likewise be thought about. With this information, organizations can build up an arrangement where they can respond to severe climate or cataclysmic events flawlessly. On the off chance that each connection in a production network is told and stayed up with the latest on the most proficient method to respond to a debacle, it can enable the supply to organize ricochet back significantly more rapidly.
8. Customer Service Expectations
Customers have more information available to them than ever before and they use this information to demand larger product variety at a lower price whether shopping on-line or in a store. In 2016, supply chains that support on-line, catalog, brick & mortar, and wholesale channels will need to be fully synchronized to meet customer requirements efficiently. With Amazon and other on-line retailers setting high availability and delivery expectations, supply chain managers will have to take stock in 2016, and understand their customers’ expectations.
Companies will need integrated supply chains to meet the requirements of each unique sales channel, with an integrated management team supported by a shared end-to-end supply chain planning and execution solution.
