Problems in Supply Chain Management

1. Supplier and Customer Integration

2. Higher Distribution Costs
3. Not Having Global procurement network
4. Higher Lead time, inventory and throughput time.
5. Risk Mitigation
6. Customer Preferences
7. Market Growth
8. Visibility: Supply chains have become extremely complex. Achieving
visibility for Tier 1, 2, 3 and beyond suppliers is very important. Supply
chain disruptions in the past five years have shown how critical these
sub-tier suppliers can be.
9. Traceability: Recent events, like food safety with China's chicken
suppliers and compliance with conflict minerals legislation, highlight
the difficulty in tracing materials from origin to finished product.
Similar to supply chain visibility, global and complex supply chains
make it very difficult to quickly and efficiently trace materials back
through the supply chain.
10.
Complexity: In the drive to reduce costs supply chains can
become very complex, creating an intricate web of global third parties.
Attempting to track and control supply chains in the face of complexity
is challenging, contributing to many of the other issues listed herein.
11.
Costs: Competition is fierce and cutting costs is often a necessity
to maintain an edge. Lean concepts, procurement strategies and
squeezing suppliers all contribute to improved efficiencies and reduced
costs. Yet these techniques also introduce risks to supply chain
disruptions and supplier performance issues
12.
Sustainability: Consumers are demanding sustainable operations
from companies, and this is no more apparent than in supply chains.
The challenge is to balance the need to demonstrate sustainable
sourcing while maintaining cost competitiveness
13.
Supplier performance: As suppliers are squeezed on costs and
tight delivery schedules, they may be enticed to cut corners. This can
result in quality problems which can have significant knock-on effects
throughout the supply chain.

14.
Natural disasters (e.g. extreme weather, earthquakes, floods):
There is little doubt that global weather patterns are changing and the
incidence of extreme weather events seems to be on the rise. Extreme
weather events such as typhoons, floods and extended deep freezes,
coupled with earthquakes and volcanoes, can have a significant impact
on supply chains depending on location and duration.
15.
Technology: Technological innovations can markedly improve
supply chain visibility and performance. It can also create significant
difficulties if it doesnt perform as expected, cannot be managed
appropriately, or cannot adapt to dynamic changes in supply chains.
16.
Cyber risks / IT issues: Supply chains are highly dependent on
the flow of information up and down the value chain, and the integrity
of that information. Cyber attacks are a constant threat and can result
in loss of commercial information, exposure to stolen confidential
information and an inability to conduct business for some period of
time.
17.
Lack of Visibility
How can you be sure of what you have? Many companies lose sight of
their inventory because they do not have a Supply Chain Management
system that provides end-to-end visibility. In many cases, companies
are sitting on too much inventory, or have misplaced their inventory,
resulting in the next issue of maintaining costs. Obtaining a 360degree view of inventory levels is a must-have
18.
Reducing Costs
One of the main causes of cost containment issues in a supply chain
cycle is excess or expired inventory. With a technologically advanced
automated system, you will be able to monitor stock quantity, location,
shelf-life and expiration information. In addition, real-time business
intelligence through reporting is available, allowing you to also keep
track of trends and better manage your financial risk.
19.
Customer Service
Today, customers have much higher demands, if you dont have the
inventory they are looking for, theyll find another who does have what
they want. This requires an extremely organized Supply Chain system
that allows for more reliable and faster delivery. It also requires a
business to have accurate information on their available inventory.
Often times, supply chain management issues stem from the challenge
of balancing customer demands with cost containment. With accurate
real-time reporting on the trends of your business and what you have

in stock, you can easily meet your clients needs while eliminating
excess costs.