Supply chain is a highly complex area of work. Not because of the technicalities involved, but more so because of the mix of factors that play a role in it. All aspects are equally important – the people, the process and the technology. Supply chain management courses share a great deal of insights into how this is done. But these are the same factors which also give rise to key issues that can impact the process in a serious manner.
Let us take a quick look at what these issues are and how to overcome them.
- Rapidly changing economies – SCM is all about logistics and moving goods from one location to the other. Sometimes or rather, many times, these locations are cross countries. The world’s economic landscape is changing so fast that the pace at which supply chains need to work has been crunched into a shorter time frame. Some goods are needed faster than they were earlier, for younger economies. Companies now need to cater to consumers who want their products delivered within the shortest time-frame. These are changes that are big issues which get percolated down to the manufacturing and logistics time-frames. Being aware and agile is the only way to tackle this.
- Seamless flow of data – While many tools are available, seamless flow of data from across various entities, to ensure smooth transitions, is a big issue. Since SCM is so time-bound, data has a huge role to play in its success. Finding the right set of tools that can effectively collate and match data coming from consumers, as well as suppliers, and create a relevant information roadmap, is what is challenging.
- Cost Control – The cost of transportation is always high. No matter how hard a company tries, one of the biggest costs to take a product from one point to the other, no matter what the product is, is an issue. Because it means incurring large costs, to ensure compliance in terms of quality and timeliness. Companies are trying to deal with this by localizing the process of end-user delivery to a large extent. That results in better economies of scale and process efficiencies too.
- The right talent – Supply chain is a specialized area. Finding individuals who have the right set of skills, knowledge and attitude is a big issue. It needs a different kind of mindset, along with the skills.
These are the core issues in supply chain management. Companies are finding innovative solutions such as technology, new talent pools, data analytics and market intelligence, to remove or reduce them. Learn to deal with these issues and manage a successful business by enrolling into an online supply chain management course.