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    Blog Image

    5 Supply Chain Pain Points and How to Address Them

    • Weak demand forecasting, lack of visibility and manual processes cause inefficiencies and unpredictability in the supply chain.
    • Businesses can leverage insightful data and analytics by deploying AI and ML to avoid the supply chain pain points.
    • Close collaboration, traceability and automation can help improve supply chain optimization

    November 17, 2022 | Supply Chain Software

    Supply chain management is a composite activity with stakeholders and numerous pieces in motion, and each supply chain has unique pain points, differing by industry and business size.

    These pain points are frequently caused by inefficiencies and unpredictability and show up due to inattention or poor processes, both of which impact supply chain optimization.

    What are the Biggest Supply Chain Pain Points?

    Some of the main supply chain pain points are as follows:

    • Weak Demand Forecasting

    Inaccuracy in predicting demand significantly impacts fulfillment rates, leads to missed revenue targets owing to stock-outs, and affects other downstream KPIs and workflows. This will not only affect service levels and lower revenue but will also increase costs due to deadstock.

    • Lack Of End-To-End Supply Chain Visibility

    Businesses have inflexible, non-resilient supply chains because they cannot adapt to change quickly without end-to-end supply chain visibility . This results in significant losses. Many potential obstacles - variable raw material availability, lousy weather, staffing challenges, political concerns, changes in legislation, and the need to find a new facility or a supplier, can affect a supply chain and result in delays and losses.

    • Tedious and Error-Prone Manual Processes

    Many businesses continue to live with time-consuming manual processes, inefficiency, and expensive blunders. This ties up the employees with unproductive routine tasks instead of focusing on strategic ones.

    • Rising Supply Chain Costs

    An organization must measure the actual cost of running supply chains to make data-driven decisions about products, customers, and supply chain optimization . Every company's supply chain strategy is built around efficiency and optimization.

    Numerous companies have been compelled to compromise on quality due to the rapid rise in supply chain expenses, which is unsustainable in the long run.

    • Lack Of Communication Among Stakeholders

    The cascading impacts of delays by a partner or supplier increase logistical costs and impact delivery and customer experience. Many businesses that produce expensive goods require frequent communication and updates, which is unachievable without technology.

    How Do You Resolve Supply Chain Pain Points?

    Investing in a unified cloud-based platform can alleviate most of the supply chain pain points. Businesses can leverage insightful data and analytics by deploying AI and ML to create strategies. Real-time data is also essential to tackle disruptions swiftly as and when they arise.

    • Better S&OP

    A crucial cross-functional activity is sales and operations planning (S&OP). An effective S&OP makes it possible to estimate and plan demand accurately, which optimizes inventory management and other downstream workflows. Thus, a successful S&OP guarantees substantial gains, such as enhanced sales and profitability.

    • Supply Chain Visibility

    Clear visibility of the inventory and activities is provided by tracking various commodities and products en route. Managing inventory in motion, proactive status updates, reducing disruptions, and risk mitigation enable businesses to improve customer service and cost controls.

    • Traceability

    Any successful firm must have supply chain traceability since it allows tracking products from source to purchase and even beyond their end-of-life activities, including whether they are recycled or resold. Accountability, openness, and sustainability are all guaranteed through traceability, thus lowering the chance of product flaws and recalls.

    • Automation

    Businesses use data, knowledge, and automated decision-making processes to optimize their supply chains while retaining agility. Automating routine tasks frees up employees to focus on innovation and improving strategy.

    • Supply Chain Optimization

    Maintaining a supply chain's competitiveness and meeting customer expectations depend on quality control. A company can execute end-to-end quality control, from acquiring raw materials through client delivery to eliminating waste and managing KPIs for better business outcomes thanks to an optimized supply chain. Also, digitally optimized supply chains deliver real-time insights into each stage of supply chain operations by using real-time data, computing, and analytics capabilities. End-to-end transparency is provided while the supply chain's flexibility and resilience increase.

    • Closer Collaboration

    Working closely with suppliers makes it easier to guarantee the supply's quality, quantity, and timeliness, thus positively impacting businesses. Supply chains can more accurately perceive and respond to changes in demand thanks to end-to-end collaboration enabled by a uniform data model and a configurable workflow to handle information sharing. This allows firms to communicate across various layers of suppliers and partners.

    These advantages are too significant for businesses to ignore, whether the collaboration takes place internally to encourage innovation or externally with partners to prevent disruptions and guarantee the timely flow of materials and inventories.

    Conclusion

    Investing in the newest technology allows businesses the flexibility and latitude to avoid being severely impacted by supply chain delays of any kind, resulting in time and money savings that are many times greater than its costs over the long term.

     

    Tags: supply chain , Supply Chain Software

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