The Challenges Of Creating a Supply Chain

The Challenges Of Creating a Supply Chain

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Friday, 21 May 2021
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We can take a lesson or two from the world’s most successful businesses like Walmart and dell. A huge portion of their success and differentiation in the market is credited to their supply chain management, in fact, Walmart’s supply chain management has been a well-told success story all over the world. They maintain strategic relationships with suppliers to get their goods at the lowest price possible and integrate all of the functions of the supply chain to make it as efficient as possible. Their supply chain management is far superior or many other similar corporations like Walmart.

In the pursuit of low consumer goods, they have invested in technology and technology plays a significant role in their supply chain strategy. They have the largest IT infrastructure around the world and depend on state-of-the-art technology to predict any changes in the supply and demand and consumer goods, quality control, and manage customer service and relationships, and have effective response systems. Walmart’s success stories along with others are one of the reasons why we believe in investing in a good certified supply chain service in Malaysia for our businesses. 

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But even state of an art non integrated supply chain comes with its own drawbacks and challenges. What are some of these challenges? 

Incapable Supporting Staff 

Nonintegrated supply chains require an incredibly dedicated staff to stay on top of everything. They need to understand customer demands, and how to create value for them. They must know how to cater to the suppliers and maintain good relationships with them. They support the logistics, transportation, production innovations, and even the technology of everything. Having an incapable staff or a team can hinder all of your operations in the supply chain can cause huge losses to your business. 

Changes In Orders 

When working with various points in an enterprise, not everything always goes according to plan. Sometimes we people are stuck with more products and inventory than they need. Sometimes we are lacking a portion of the inventory because of a failure in deliverance and fewer orders. Consumers are unpredictable and we never know when the course of the product will change, they may cancel their orders or change their orders at a second’s notice. And it is the businesses’ responsibility to cater to these changes and ensure a streamlined process along with the supplier, wholesaler, retailer, and distributor line. Sometimes these changes also cause a major conflict in relationships. More often than not suppliers are not close friends. They look at their own benefits, even at the expense of our loss. They don’t have the concept of sharing risks. In the same way, they don’t share benefits. So it is important to be mindful of intricate details of relationships in the supply chain. 

Communication Issues

When a supply chain is not integrated, our biggest issue is the issue of proper communication. The supply chain can be largely affected by how one communicates with one another and how strong the relationship is between partners. 

There are so many more challenges that we face when creating supply chains. So it is important to keep in mind which one of these challenges are we are facing and how we can mitigate them in the long run. the challenges should be kept in mind before creating a well-organized supply chain strategy. 

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