Top 3 quality challenges for modern supply chains

In today's rapidly evolving supply chain landscape, businesses face numerous quality challenges as they strive to scale and meet ever-increasing consumer demands. In this article, we explore the top three quality challenges modern supply chains must navigate and how AI solutions like Captur can help alleviate these pain points.

1. Labor Shortages: The Struggle to Find and Keep Skilled Talent

As highlighted in the KPMG 2023 Future of Supply Chain report, 62% of companies surveyed identified labor shortages as a major challenge. This scarcity of talent impacts the entire supply chain, from manufacturing to last-mile.

• Managing a complex workforce: The rise of remote work and the gig economy is transforming the traditional model of full-time employment. While offering flexibility to attract a broader talent pool, this shift necessitates new approaches to performance management. Ensuring adequate onboarding and training for both full-time and contingent workers, particularly during peak seasons, is critical.
• Recruiting tech-savvy employees: The KPMG 2023 Future of Supply Chain report further emphasizes the need for companies to require new roles and skills as supply chains become more digital with the rise of AI and automation. The competition for tech-savvy talent is fierce, and companies need to offer attractive compensation and development opportunities to attract and retain skilled employees.

How Captur can help: Captur can simplify driver onboarding and training by providing real-time AI verification of proof-of-delivery (POD) photos, reducing the need for extensive manual oversight and allowing new hires to become productive quickly, especially during peak seasons when temporary workers are brought on board.

2. Pressure on Profitability: The Squeeze on Margins

Maintaining profitability is becoming increasingly difficult as supply chains face rising costs, fraud, and evolving customer expectations.

• Skyrocketing fuel costs: The costs of fuel have dramatically increased, impacting every mode of transportation. As Foley & Lardner LLP points out, "The cost of shipping a container on a transoceanic trade route increased seven-fold in the 18 months that followed March 2020." This surge in fuel prices has a cascading effect on the entire supply chain, driving up the cost of goods and squeezing profit margins.
• Returns and micro-hubs: The rise of consumer expectations in e-commerce has led to more returns and the need for localized fulfillment centers (micro-hubs). These factors add operational costs and complexity, requiring careful management to avoid impacting profits. Rising freight costs, flagged by 62% of respondents in the KPMG report, further exacerbate these pressures.

How Captur can help: Companies using Captur minimize delivery disputes and protect their bottom line by proactively ensuring accurate and compliant deliveries, reducing claims by up to 35%.

3. Rising Customer Expectations: The Need for Speed and Quality

While speed is undoubtedly important, it's no longer enough to differentiate a company in today's competitive market. A PwC survey revealed that 86% of customers are willing to pay more for a great delivery experience, underscoring the importance of quality and service in today's market.

• Same-day delivery: For many consumers, same-day or next-day delivery is the expectation, not the exception. Meeting this demand requires significant investments in logistics and technology. The KPMG report also emphasizes the importance of visibility and traceability, with 55% of respondents identifying it as a key challenge.
• Supplier scrutiny: Retailers are under pressure to deliver high-quality products at competitive prices. This means they're increasingly scrutinizing their suppliers, ensuring they meet strict quality standards and can deliver on time. Upstream supply chain disruptions, cited by 70% of respondents in the KPMG report, further emphasize the need for robust supplier relationships and risk mitigation strategies.

How Captur can help: Captur's real-time image verification capabilities can help ensure that packages are delivered in the right address and perfect condition, reducing the likelihood of returns and improving customer satisfaction.

About Captur

Captur is an AI-powered quality management platform for supply chains. It helps operations teams reduce the risk of defects and claims, by automatically verifying images against internal policies in real-time. By embedding Captur’s live-check, companies can improve quality and drive profitable growth.

Ready to get started?

We can’t wait to show you what Captur can do. Drop us a line at?[email protected]?for more info.