Supply chain managers face unique challenges daily as they try to retain efficiency and effective operating methods amid the pandemic. Fortunately, there are different ways to deal with supply chain challenges. In this article, we’ll highlight a few ways you can overcome common supply chain hurdles.
Client Expectations and Customer Service
Customer service is an integral part of supply chain management, though it also poses a major challenge. Clients expect the business to deliver the right products on time to the correct location in the right quantity. However, there are numerous moving parts in a transaction, and there are many instances where something may go wrong. It’s crucial for the business to check every box accordingly and make certain the service goes without a hitch.
The consumers are interested in options and services that can be customized. With such factors in mind, businesses should ensure that customer service needs have been met with an open and clear communication channel.
Ensure there is visibility in the supply chain, and information should be up-to-date and accurate. Your business should use technology that ensures the clients can respond and address changes in real-time to ensure there is consumer satisfaction.
Cost Control and Globalization
Cost control poses a major issue mainly because of the freight and rising fuel costs. As labor costs rise, operating costs are under intense pressure all while the pandemic continues to hinder economic growth. Cost control is an ongoing battle that must be constantly monitored.
Technology and visibility can help to solve the globalization and cost control issue. The main issue is that some businesses utilize outdated technologies and processes in their supply chain. This means they can’t meet modern demands for your particular needs.
For instance, a firm may need to reroute an inbound container shipment because of different restrictions in a region that lacks visibility. The best decision is to ensure the consignment has been redirected from one port to another; however, an issue will arise in the supply chain, and there will be decreased efficiency and higher costs.
To monitor the cost and service issues associated with each decision, businesses should utilize streamlined systems, technology, good communication, and ensure there is flexibility.
Risk Management and Planning
Risk management and planning means that a business should be accountable and respond to global market changes. Factors and events such as credit availability, political agendas, consumer demand, pandemic events, new product launches, and global sourcing create a huge shift in the market, and the supply chain is also affected.
Planning comes in handy in such instances. For a company to be efficient, the market and plans should be reviewed regularly and reassessed. Contingency plans should also be evaluated. The main risks should be quantified and identified to respond to, control, and ensure all the issues are under control. A risk management plan ensures the firm can react to and overcome different issues affecting the supply chain while ensuring the damage is minimized.
Businesses should be familiar with the standards that are mutually agreed-upon regarding the relationship between a corporation and the suppliers. In such an instance, a business can easily manage its expectations. If you’re looking to optimize your supply chain in 2021, look no further than the expert team at PortCity. Our expert staff has the experience and passion to get your business ready to overcome supply chain hurdles.