Supply chain management (SCM) is the method by which supply chain activities are managed to have a plus point over competitors as well as increase the value of our customers. It represents the efforts by which the supply chain management solutions help to grow and manage supply chain activities most adequately.
Because SCM is inherently complex, it is hard to execute at a consistently advanced level. Thus, complexity itself is the biggest challenge facing practitioners, who are also challenged by being devoid of enough information, technology, labour, skills, time, and resources to remain on top of every area of supply chain management.
Because of the globalization of manufacturing operations, having a worldwide procurement network that will support and respond to your supply chain needs is essential. According to many chief procurement officers, selecting a strategic supplier that provides manufacturing locations with consistent global quality and reliable local service, is a challenge.
Respondents cited risks from natural disasters, the loss of key suppliers, rogue employees who cause or call notice to supply chain disasters, product recalls, and poor planning for organization continuity, you can secure yourself from the above risk by setting insurance policies or by setting an agreement with the suppliers, manufacturers to fall back on.
Use of the latest technology in several fields by having the best experts has proven to be a fantastic support in new product development. With precise product life cycles and changing market demands, companies are compelled to commence on a lean journey. It’s essential to observe that the supply strategies in a lean environment support the operations strategy.
New products and expanded product options create pressure to locate new suppliers. The rise in omnichannel commerce, especially direct-to-consumer channels, called for deploying new systems and threatened longstanding success in traditional channels.
Cash flow management is a serious issue in almost every business but it is more complicated in supply chain management. Businesses must keep track and plan for a complex web of expenses. But with so many entities operating simultaneously, it’s hard to know where and when to allocate your resources. By creating a detailed calendar of upcoming expenses one can overcome this issue.
The stress on manufacturers to create safe, high-quality product is an increasing challenge. The number of product recall cases keeps growing every day. It may damage a company’s reputation and is costly to its bottom line. So It’s essential to clarify the quality level expected and the percentage of acceptable defects ahead of time. It’s also best to define who is responsible and what happens should there be a disagreement in the future.
Remember, although global supply chains present several complex challenges, they also provide compelling advantages, such as more sourcing options, lower labour costs, and opportunities to expand internationally.
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POSTED BY
Ishika Adhana
Digital Marketing Executive
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