SUPPLY CHAIN CHALLENGES
Supply chain function has stretch targets and daily challenges. Various supply chain challenges are as follows:
1. Dynamic Problems and situations:
First of supply chain challenges is inherent variability in consumer behavior which is dependent upon multiple factors like economy, Income levels, competitors, advertising and other factors.
Estimating demand accurately is tedious job and sometimes not always in organization control. So, with any change in demand entire supply pipeline has to be changed to align to new demand.
This creates challenge in terms of capacity constraints, excess or short inventory, transportation constraints and vehicle detentions which make managing supply chain more complex and a challenging job with every changing nature of problems
2. Demanding Customers:
Customers are demanding and always looking for perfect availability, timely delivery and best quality of service.
Excellent service level is required for build strong customer satisfaction.
3. Rising Costs:
With any variation in demand and supply, cost starts increasing. Supply chain targets are to deliver year on year cost savings.
SCM controlled costs are material cost which are dependent on commodity suppliers, transportation cost dependent on global fuel prices and warehousing costs
4. Keeping workforce Engaged:
Supply chain team face daily challenges. They need to be self-motivated so as not to get discouraged and always look forward to overcome the challenges.
SCM professional needs to be courageous, optimistic and ready to face challenge and overcome them.
Leadership needs to provide strong guidance and support, led by example and get involved in day to day responsibilities.
Teams need to be recognized and appreciated for their contributions to keep their morale high.
5. Rigor in execution:
One of key Supply chain challenges is rigor in execution. Success in supply chain roles depend upon how things are executed properly and good execution requires effective leadership of large teams and hands on job approach.
Not everyone is inclined to hands on and deep involvement in the job which can be a hindrance for effective accomplishment of objectives. Planner or logistics person need to be on their toes all the time for solve the daily challenges
Supply chain has to coordinate with multiple functions and stakeholders to get things done which don’t fall under direct control of supply chain. Strong personal credibility is important to get things done from others
7. End to end ownership:
Supply Chain often has to push others to do their work to deliver the end results. Therefore, they need to take full ownership.
These are the various types of supply chain challenges which are faced in day to day working.
Having a plan in place and right leadership is essential to overcome these supply chain challenges