7 Main Challenges in Supply Chain Management And How You Can Workaround It

Supply chain management (SCM) is the process by which supply chain activities are managed to have an advantage over competitors as well as maximize the value of our customers. It basically represents the efforts by which the supply chain management solutions help to develop and manage supply chain activities in the most efficient way. When we talk about supply chain management, we also pertain to product development, sourcing of materias, production of quality goods and logistics. With an efficient SCM Software you will be able to manage the flow of easily.

By knowing the activities involved in the scope of supply chain management, we can also identify the possible challenges and provide solutions to them.

1.Quality Customer Service

The supply chain management is centralized on the needs of the customers. It is about giving the right quantity and the right quality of the product for the right amount of money. All this, in perfect timing and setting.

Solution: It might seem simply, but on the contrary, it isn’t. Customers have different preferences and we have to always adjust to the customer’s needs. Being able to provide customers unique solutions make a difference entirely. Companies that actually excel in this field are the ones that make an effort to learn and invest in new technologies.

2.Costing

Globally speaking, the costs of raw materials, energy and labor have increased due to economical constraints. In order for operations to continue production and provide customers with good quality items at affordable rates, adjustments have to be made to keep operations running.

Solution: The best solution to this issue would be improving your cost control by executing your plans efficiently through constant monitoring. Through efforts in providing warehouse efficiency you would be able to do so.

3.Risk Management

Due to the constant change in the market, coming from a variety of sources such as consumer demands, political agendas and global sourcing, would cause major issues to the operations.

Solution: Always be prepared with a risk management plan, on how your company will be able to overcome disruptions during the course of operations. By hiring a logistics software development company you would be able to manage these issues effectively with less effort on your end. After all, logistics management is vital to the entire operation.

4.Supplier Relationship

By creating a mutually sound and harmonious relationship with your partners or suppliers, you will be able to provide your customers with products of high standards in a timely manner. This also allows you to create opportunities for improvement in terms of performance.

Solution: By building a strong working relationship with your supplier, you would be able to work efficiently and come up with a better output in a short period of time.

5.Qualified Personnel

Over the years, it has become a challenge to find talent interested and passionate about this line of work. Personnel hired in this field must have an understanding about the duties and responsibilities needed.

Solution: Since locating dedicated personnel to work for this field has become increasing hard to find, their market value will start to rise. Hiring and promoting through in-house staff would be the most affordable solution at this point.

6.Unforeseen Delays

Procurement of materials and products may be easy, but the delivery may not always be 100% on time, especially with time differences and a variety of shipping time frames. When items are sourced from different countries, delays like this are very common.

Solution: Always have buffer stocks. Through an efficient warehouse management system you are able to know when you need to have certain materials delivered as well as create a time cushion in terms of delivery to make sure everything runs smoothly.

7.Fast-Changing Markets

With technological advancements changing our markets everyday, it is quite difficult to stay in pace and adapt to the variety of innovations in the market. But because the goal is to stay efficient in these changing times, companies would have to be more flexible.

Solution: Change is inevitable. The way we adapt to change is definitely something we need to manage by using logistics management software. We are able to move with the flow and improve our output as a whole.

If your company is currently encountering these issues and would like more information on how to resolve them, check out this article by Finget.