Every industry has a network comprising suppliers, producers, intermediaries and customers spread across the globe. In spite of perfect design assessment, cost management tools, demand-supply estimation, a company cannot achieve success unless it follows Supply Chain Management.
Supply Chain Management- Management of the flow of goods, information and finances amongst the business networks. The success of the Industry relies upon the fact of how well you manage your supply chain at the global level. When we talk of Supply Chain Management, there are unlimited challenges that each industry ought to face.
"The real competition is between supply chains, not companies." Martin Christopher
In order to ensure smooth functioning, supply chain managers should be well-aligned in advance with all the challenges that are running in the competitive market.
Here is the list of the top five Global Supply Chain challenges affecting businesses.
Business environment
Economic pressure, trade dispute and global health issues impair the supply chain massively. With time, these risks can cause downturns in the Supply Chain Management system.
Solution:
Proper planning followed by effective Supply Chain Management and Coordination to handle the differences in regulation, taxation and time zones.
Single-sourcing
Many companies depend on a single source to obtain raw materials and other finished products. The companies that prefer to rely on a single source, naturally make themselves prone to the Risk of Failure In The Long Run.
Solution:
Don’t make OMNICHANNEL the only channel!!
Companies shouldn’t rely on single-source rather, focus on implementing risk mitigation strategies. Develop an innovative way for Supply Chain.
Rising Costs
The rising cost of transit, energy/fuel, labour and other factors create an upward thrust on operating costs. As a consequence, the costs rise to an extent where it has to be borne by the end consumers. And, if your product becomes expensive, without any doubt your company shall lose the race.
Solution:
Brands ought to invest in technology to reduce the negative effects of rising costs. Also, the management should utilize the available information and make the best possible judgment in regard to all the elements in the supply chain.
Lack of data and insights
Businesses often complain of not having sufficient information to make decisions. Lack of data and insights sometimes leaves them paralyzed. Thus, it becomes complex to analyze the alternatives and other scenarios to make decisions that comply with the company’s interests.
Solution:
The managers must be intelligent enough to interrogate the given data so that they can come up with an optimal solution.
Compliance with International Regulations
Complying with the International Regulations can be a daunting process as the Quality Standards, Import & Export restrictions, Packing & Labelling regulations vary across the globe. Companies need to ensure that materials provided by a foreign supplier meet the domestic regulations.
Solution:
Companies that obtain materials from foreign suppliers should have first-hand knowledge and expertise to interpret the regulations. Thus, ensure the best solution to managing the Supply Chain.
Conclusion:
Regular investment is needed in your Supply Chain Analytics for smooth Supply Chain Management. Companies that are looking to expand globally, need to stay proactive and take on the challenges in the smartest way possible.
Let Genefied be your guide to the Smartest Supply Chain Management!!
GENEFIED-Your ultimate partner to counteract Supply Chain Challenges 2021. Contact today!
