Challenges in Conventional Supply Chain Management

Supply chain management is one of the most important areas in business that impact the overall success of a firm. A supply chain is composed of resources that provide input materials, components and services for the creation of goods, products or services.

Here are 5 Challenges in Conventional Supply Chain Management;

1?? Limited and Lack of Visibility

Lack of visibility poses challenges in identifying the source of data. Diverse record-keeping and reporting systems result in incomplete, siloed and unreliable data that can cause delays for both customers and suppliers.

2?? Isolated and Disconnected Supply Chain Participants

Value chains are a framework for understanding the collaboration between key supply chain stakeholders, from producers to retailers or consumers. However, in reality, there may be little or no direct contact between these actors and their independence makes it difficult for them to collaborate on shared data.

3?? Lack of Product Traceability and Monitorability

The inability to track a product throughout the supply chain results in inefficient and manual record-keeping, and creates ambiguity in product information. This can be due to the presence of vague, untraceable product characteristics, which require the cross-checking of two or more incompatible systems.

4?? Absence of Transparency

Transparency is crucial in supply chain management. The lack of a transparent system makes it difficult to establish the origin of parts and find faulty products, which can result in lost time, money and reputation for companies.

5?? Unpunctual Operations

Supply chains are still struggling with manual processes that slow down operations across the supply chain. As a result, they miss out on inventory management, increased costs, fulfillment delays and customer satisfaction.

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