Smart supply chains - Challenges and Opportunities

After a heavy shift to online retail, an increase in consumers, pent-up demand, and savings, a huge opportunity for supply chains was created.?

After a very turbulent 2020, global supply networks have in some ways been able to get back on course. However, a number of supply chain issues persisted into 2021 and made things more difficult for both large and small eCommerce shops.

Many retailers found innovative solutions to maintain their revenue flow and to keep their customers satisfied while having to deal with so many natural phenomena and external variables. Some companies switched to backorder sales, while others decided to work with domestic vendors rather than overseas ones. Getting lean, selling through inventory, and concentrating on working capital is probably how businesses survived the events of last year.?

The supply chain crisis has undoubtedly been overwhelming and ever-changing. With severe stock shortages, slow fulfillment of deliveries, and a long list of backorders, suppliers, and manufacturers from all over the world have primarily been put to the test. These difficulties are generally brought on by rising consumer spending, a continued preference for online shopping's convenience, and the need to make up for bottlenecks from the previous year.?

Challenges:?

1. Scarce Material

Due to a sudden increase in consumer demand unlike anything before, there has been concern about insufficient inputs ever since the pandemic started.?

2. Hike in freight prices

The pandemic led to a spike in online purchases, which increased demand for imported raw materials and finished consumer items. With the product demands being so high, there was quite a shortage of empty containers and shipping capacity to meet it. This shortage has been the root cause of the hike in price.

3. Demand Forecasting has gotten tougher

From attempting to enhance client demand using data and research to having to depend on intuition rather than data-driven analysis, supply chain managers are urged to set aside their bias to, seek out fresh data for new forecasts.

4. Changes in consumer behavior

The pandemic has significantly altered consumer attitudes and habits, lowering the bar for delivery times and boosting the standards for a satisfying customer experience.

5. Technological Transformations

New technology like AI, drones, electric cars, and on-demand delivery, have the potential to improve how we approach the conventional supply chain.

How to change these ‘Challenges’ to ‘Opportunities’?

There are several approaches to help solve these problems. Although there is no one perfect solution, integrating a few different approaches can provide a good result.

• Broaden your supply horizon: Increase the avenues of your sources, potentially even geographically, to benefit your supply chain.?
• Freight Forwards are the way to go: Managing and tracking your products can be done easily by collaborating with one or more freight.?
• Change your method of demand forecasting: Using automation to compute data is always the greatest method to enhance forecasting.?

Choosing the right supply chain along with finding the right solution to your supply chain challenges and making them opportunities is extremely imperative. Besides the challenges and opportunities listed above, there can be so many more obstacles that stand in the way, but integrating multiple solutions may help take you in a better direction.?

If you would like to read more about smart supply chains, check out our blog at:?https://ficuspax.com/blog/smart-supply-chains-challenges-and-opportunities/

Get in touch with us at Ficus Pax to know more about supply chains and supply chain management.