In today’s business landscape, supply chain management is fraught with challenges as it is becoming more complex by the day. Hidden risks pose a significant threat as businesses continue to struggle to keep their supply chain under control. The increasing challenge to create and retain an effective and efficient supply chain system requires a strong plan and steady measurements of weak links. Enterprises need to leverage the use of data, savvy logistical minds, and digital technology to overcome these challenges and deliver meaningful relationships.
Let’s take a look at the key challenges in supply chain management and identify ways to overcome them with the information now at our disposal.
Companies are outsourcing production and moving manufacturing operations to different countries that offer lower taxes, labor, and cost of raw material transportation. This not only includes the entire process, but also the procurement network. Having multiple suppliers in various locations complicates the management of supply chain. The increased complexity in maintaining real-time visibility into their production cycle makes it extremely difficult in ensuring momentum, seamless coordination, and consistency with all parties. Along with this comes the inherent risk of losing control, management, and visibility, especially if the business applications are not integrated.
In this case, it is important to have a strategic with a global procurement network who can support your supply chain needs and manage diverse structures of data across various geographies effectively. This enables your business to track the movement of the raw materials irrespective of the location, optimize inventory levels, lower the costs, and also synchronize supply with customer demand.
2. Shifting Priorities and Demands
While advancement in technology is making its way into the supply chain cycle, businesses are constantly forced to change their systems to keep up with new demands. It’s not just what the customers want but also when they want. The rapidly changing market demands intends for shorter product life cycles while focusing on low manufacturing costs for each cycle. Apart from this, businesses must regularly update their product features and redesign their supply chain to accommodate these changes.
To respond well to the dips and spikes in demand and production needs, businesses must maintain an agile supply chain process to address their challenges. From adapting to digital disruptions to utilizing technology to create new processes and cope with these demands, companies can integrate key information to notice discrepancies within the delivery process right away. This can be passed onto customers immediately to avoid any delay or disappointment.
Emerging technologies such as Smart Packaging, Blockchain, and IoT are changing how compliance is enforced and measured. Companies are under increasing pressure to create high-quality products at every level of the supply chain such as when procuring raw materials, packaging, manufacturing, handling products, and logistics.
Enterprises also need to ensure that the local and international regulatory standards are met, aside from passing quality and safety tests. A reliable supplier and partner can address this concern by helping you decide the right production method according to international standards, and ensure quality assurance with seamless production quality.
The key to solving major challenges in this day and age is through data management and integration. This can provide the much-needed control and visibility of supply chain processes such as logistics, storage, procurement, and manufacturing. Work from the core by analyzing information to generate useful insights for different supply chain management systems thereby ensuring flawless flow. It is important to address the issues at the most basic level of the value chain in every activity. Furthermore, providing clear visibility can improve the relationship and trust with suppliers and partners in the long term.
At Intrigo Systems, we enable manufacturers to overcome their challenges in supply chain management and provide data solutions that can help companies globally manage and integrate their key manufacturing processes. Talk to us today to know more.