Business leaders must become acquainted with the common supply chain problems businesses face so they can understand what challenges to expect and how they can be overcome. If you work in supply chain management, read on to discover the supply chain areas that are often tested by the market. Maybe you have already experienced these problems firsthand, or maybe this article will show you issues you had not yet even considered.
As anyone who has worked on supply chain projects can attest, supply chain management is a constantly changing field. New, advanced technologies frequently disrupt the status quo. As a business leader, you must find scalable solutions that let your company pivot with any rapid changes in the industry. That kind of flexibility is something all great supply chains have in common.
Too Much Inventory
Unless your sales projections are perfect, it can be very easy to end up with more inventory than you would like. But this problem also presents a great opportunity. Recent trends suggest that consumers are very concerned with the societal impact of corporations beyond their services or products. There are plenty of charities that would be happy to take your excess products. Being overstocked could present an opportunity to dazzle your customers with an act of philanthropy.
Perhaps the most common supply chain problem businesses face, miscommunication can be a terrible plague on any company. When clients and suppliers have misunderstandings in their direct lines of communication, the client’s needs may not be met. Businesses should provide clients with work instructions or written specifications that outline how they can communicate questions or feedback at any stage in the process in clear verbiage.
Not Enough Shipping Capacity
Especially when there is a surge in demand, it can be difficult to maintain enough shipping capacity to meet the needs of your customers. Many businesses became all-too-aware of this problem during COVID-19, when there was a surge in people ordering packages from their homes.
You should create contingency plans in advance just in case there is a disruption in the supply chain. Crowdsourced solutions present an excellent source to address shortages, as they can help companies scale upward.