5 major supply chain challenges (and how to resolve them)
Supply chains will always face challenges over time. It comes with the territory when companies and services rely on the people before them to deliver so they can in turn deliver to their market.
The initial product idea must be thought up, this requires research and a prototype, which then requires funds for mass production, for this mass production the correct amount of supplies must be sourced, then a location selected to create the product in question, then come the packaging suppliers, delivery services and costs and finally the consumers purchasing the product.
Such a long, complicated process (which was actually simplified greatly just then) will come with challenges; here are five and how you can resolve them:
- Not preparing accordingly for e-commerce
E-commerce is not a commodity to be overlooked in the world of business and your supply chain must be adapted to accommodate its requirements. Going online can increase your sales dramatically, especially if you are able to offer quick delivery.
E-commerce can actually offer you information visibility throughout your supply chain. You can see when an order was placed and then the following stages all being tracked. It also benefits customers because they receive a status on their order quickly, improving customer satisfaction and an advantage on competitors.
- Safe, high quality products every time
Product recall is an everyday occurrence for the consumer and retailer but by tackling this issue at supply chain level you can ensure you don’t run into trouble later. If your regular packaging supplier cannot meet current demand it’s important that you do the research and find another alternative that meets the same standards, to ensure your product goes out with safety in mind.
- Not planning for future changes in sales
Your business will have ups and downs and it’s important that you plan accordingly for these. Nothing is certain and the needs of customers are constantly evolving, which can impact upon your supply chain. If you can track sales as they happen and adjust your supply chain accordingly you will always remain safe in the face of potential supply chain challenges.
- Manage your inventory correctly
One huge supply chain challenge is ensuring you have enough stock to sell but not so much that you have overcompensated. The pharmaceutical industry is currently experiencing an inventory management issue when it comes to their supply chain, along with lack of co ordination, which is resulting in weaknesses down the line.
If pharmaceuticals are currently struggling then the rest of the health industry will be too, with GPs and chemists waiting for prescription drugs and the same issues more than likely going wrong when it comes to obtaining other medical supplies, such as castors from Tente for beds and equipment or even new machines to treat patients with. Managing your inventory correctly is imperative and if not considered correctly can have a real knock on effect on your supply chain.
- Not considering limitations of suppliers and partners
Your supply chain is a fragile balancing act that rests on the capabilities of everyone else working towards the same end goal. To overcome future issues ensure your partners are capable of meeting current demand and that they have the wiggle room to do more in the future.
When it comes to avoiding supply chain issues planning is key as well as considering every possible outcome for your business and ensuring everyone you partner with is on the same page.