How to Solve the 5 Biggest Supply Chain Problems 

No part of running a business is quite as tricky as supply chain management. From fluctuating consumer demands to stringent environmental regulations, various issues may require you to revise your current approach. That’s why it’s essential to invest in high-quality education, such as in-depth courses on supply chain management. They can show you how to overcome the biggest setbacks associated with this process. Here are the five major problems you will encounter regardless of the industry.

Problem 1 – Allowing Risks to Catch You Off-Guard; Solution – Be Proactive 

It’s hard to have a smooth supply chain process from start to finish. For example, suppose you’re moving heavy equipment to your customers, and the transport ship breaks down in the middle of transit. You’ll need to improvise if you don’t account for this contingency, which can be time-consuming and expensive. 

That’s where supply chain risk planning comes in. It requires you to be proactive about every stage of the shipping process to reduce the likelihood of accidents. By accounting for all the things that can go wrong, you have a foolproof way to jumpstart your operations and ensure the wares reach their destination with little to no delay. 

Problem 2 – Not Meeting Clients’ Product Quality Standards; Solution – Diversify Your Supplier Network

According to G2, more than 58% of companies are utilising omnichannel fulfilment to boost customer experience and lessen the burden on certain sales channels. 

That’s not the only way you can keep your customers happy. More specifically, what if they’re complaining about the quality of your goods? Although omnichannel fulfilment speeds up your supply chain, it may not address the core issue. 

Don’t hit the panic button just yet because diversifying your supplier network can save the day. Think about it – if the products from your current suppliers aren’t up to par, why should you keep them in your portfolio? And if the supplier doesn’t address the flaws of those commodities, why not look for other options? 

An alternative supplier may put an end to your product quality struggles. By providing superior offerings to your current partners, they enable you to increase customer satisfaction and add consistency to your supply chain. 

Diversifying your supplier network is beneficial in many other cases. For instance, clients might be thrilled with the wares sourced from your existing partners, but what if there’s a bottleneck in their shipping process? The inability to send the goods to your consumers can damage the relationship with your customers for good. 

Having a backup plan in the form of multiple suppliers can help. If the primary option fails to dispatch the goods, you can always get them from the other enterprise. This keeps your supply chain moving smoothly by ensuring products reach their destinations. 

Problem 3 – Inefficient Inventory Management; Solution – Incorporate Software Into Your Toolbox

Numerous issues can impede your inventory management. Different seasons, changing customer demands, obsolete products, a lack of centralisation, and improper tracking of wares’ location are just some of those issues.

Leaving the unchecked is a no-go. After all, you can’t streamline your supply chain without mastering the art of inventory management. You’ll be more likely to make a mistake when dispatching or returning products and keeping an adequate level of stock. 

But controlling your inventory manually is practically impossible, especially if you’re a large organisation. You need something to automate the process and make it more accurate. 

That something is inventory management software. Here’s why it makes sense to incorporate these systems into your supply chain business: 

• Automation is king – Manual inventory tracking is time-consuming and tedious. Your staff’s skills can be put to better use elsewhere, which is precisely what software enables. By automating the supply chain procedure, it allows your employees to focus on strategic tasks and other activities, making them more productive. 
• It improves accuracy – Besides being sluggish, manual inventory management is also prone to error. That’s not the case with automated procedures. Inventory tracking software immediately registers whenever a product enters or exits the system. This way, it dispels any concerns you might not have the correct number of items in your warehouse. 
• It decreases costs – Overstocking is one of the biggest expenses caused by faulty inventory tracking. Cutting-edge tools solve this problem by being more accurate than manual tracking across the board. By telling you exactly how many goods are in your stock, they eliminate the risk of keeping too many items. 

Problem 4 – Limited Supply Chain Visibility; Solution – Rely on Tools and Provide Timely Updates 

Put yourself in your customers’ shoes for a moment. You order a product, but you have no idea when it’ll arrive. Likewise, it’s annoying when the seller doesn’t provide any updates about the goods’ whereabouts. Chances are, you’ll never buy from this company again. 

How do you avoid such a negative customer experience? By integrating tools into your workflow.

Supply chain platforms have robust tracking capabilities that inform you about every stage of the process. They provide this information instantly, allowing you to relay it to your clients for greater visibility. 

Another impressive feature of these systems is their ability to identify weaknesses. They often point to bottlenecks, so you can resolve issues and take your supply chain to the next level. 

Problem 5 – Poor Productivity; Solution – Enhance Your Communication Channels

We’ve already hinted at improving productivity, but few factors can curb productivity as much as miscommunication. If your staff doesn’t know what to do, how can you expect them to be efficient? 

Thankfully, a few simple tweaks to your routine can address this issue: 

• Hold regular briefings – Gather your team at least once a week or month to discuss your goals and share updates. This keeps everyone on the same page and helps them understand their duties. 
• Add technology – An array of tech solutions, such as cloud platforms, help your team stay in touch from anywhere. 
• Train your employees – Your workers need to adapt to the evolving nature of your supply chain. Rather than leave them to their own devices, train them how to communicate effectively with one another. 

Trust the Process 

Whenever you notice there’s something wrong in your supply chain, don’t think it’ll resolve itself. Instead, rise to the occasion and deal with the setback before it loses you a customer or two. Be it through high-end technology or in-depth planning, even the tiniest of interventions will help you stay afloat in this competitive realm.

Enhance your supply chain performance with IoSCM. Take a look at our extensive range of professional qualifications, discover the real benefits of our membership packages, and explore some of the outstanding resources we have available. Speak with a member of our Advisory Team to find out how we can help you, call 0800 1422 522 today.