Logistics management can periodically resemble herding cats. It’s a chaotic, hectic ballet of data that frequently causes misunderstanding and overwhelm.
5 Common Supply Chain Issues and Their Solutions
Logistics management can periodically resemble herding cats. It’s a chaotic, hectic ballet of data that frequently causes misunderstanding and overwhelm. Even one minor mistake in the supply chain can completely derail your company’s global operations.
Normally, the whole process of the supply chain goes through the following phases:
- Acquiring Raw Material
- Manufacturing of Product
- Packaging of Final Product
- Storing the Product in Warehouses
- Product Getting to Market Through Distribution Process
- Retailers Selling the Product
However, one mistake at any stage of the global supply chain might cause numerous issues later on. One tiny mistake frequently results in losses of thousands of dollars. Your company needs supply chain management to avoid problems and maintain profitability given the numerous potential for disaster. Here are five common supply chain issues that might dent your shipping business and their solutions.
1. Lack of Automation (Too Much Manual Tasking)
More than 60% of businesses don’t manage their supply chain operations using any technology. Does your workforce still perform the majority of supply chain activities manually? Leave paperwork and manual data input behind when precision and efficiency are the primary company objectives.
Maintaining manual processes results in the storage of crucial data in the unreachable file and email folders. Let the technology handle the work if it can complete it more quickly and efficiently than a human. Utilize the talents of your human team members for more strategically important work to advance your network of supply chains.
How to Fix It?
For automatic order management, stock control, shipment updates, and other purposes, use information technology and machine learning. By using technology, you’ll be able to handle more orders at once and spare your crew from the strain of having to carry out duties by hand.
2. Single Failure Point
As we have discussed the whole process of the supply chain, we got to know that the whole process works fine once all the components function properly. If at any point in the cycle, a failure occurs, the whole process is badly damaged. That’s where it becomes a drawback for shipping that only one failure at a given point not only ruins that specific phase but the whole process of supply chain management.
Tragically, the majority of supply chain managers wait until it is too late to find single sources of failure. You should audit your supply chain for weaknesses because even one mistake can lead to a myriad of additional issues for your company.
What is the Solution?
What is lacking in your supply network? Are there any hiccups in your supply chain? Here, be cautious and deal with any errors before they cost you money and time.
It implies that:
- Finding mistakes made by vendors and employees
- increasing the variety of your merchandise and material sourcing
- Performing constant supply chain audits
- Track the key performance indicators and metrics of the supply chain
- Monitoring stock levels
- Improving your warehouse management procedures
Before you can solve an issue, you must first recognize it. By taking preemptive measures before incidents result in lasting damage, you can avoid supply chain problems in the future. Furthermore, having a solid supply chain gives you a significant competitive advantage over other retailers.
3. Siloed Information Systems & Data
Can you view your entire supply chain in one location? Or must you login into many platforms, examine various files, and confer with your team before you can see clearly?
Siloing their supply chain data is the first blunder that supply chain experts make. You can’t fix obvious supply chain issues until it’s too late if you don’t have the correct data or any data at all. Combine all of your data in one location so that you can interpret it meaningfully for improved resource planning. This entails managing the supply chain as a system rather than a collection of one-off operations.
How to Fix It?
Software is a simple solution to data problems. ERP system will provide you with real-time analytics into your supply chain and actual data that will enable your team to handle business more quickly. With the proper data on your side, you can logistics management, forecasting, and procurement more effectively.
4. Lack of Shipment Tracking
Where are your deliveries and merchandise at the moment? You have no idea where your products are, how much of them you have available, or where they are in transit if you aren’t keeping track of your inventory. This lack of insight can result in excess production, stock shortages, and product spoiling, all of which can hurt your bottom line.
Shipping tracking is as important as any other stage in the shipping process. You need to have all the information about your cargo. You need to have all the planning about the routes for the cargo to reach the destination. Nothing should be hidden from your eyes. The more transparent the process of shipping, the higher will be the likelihood of avoiding any shipping-related issues.
It’s Solution
Tracking systems that give you clear insight into a product’s life cycle are necessary for effective supply chain planning. The top shipping company in Dubai, ABAF Shipping, offers retailers accurate tracking updates that increase visibility and guarantee that you always see where your cargo is and when it will reach the destination. Future planning is made simpler the more visibility you have.
5. Delays & Damages
You can manage some delays and damages, such as those brought on by bad scheduling and packing. Other harms and delays, such as those brought on by disasters and pandemics, cannot be avoided. Let’s concentrate on variables that we can influence.
Your chances of making a timely and intact delivery are increased by using appropriate packing and using scheduling buffers. The experience of your clients might be ruined by only one late delivery or defective item. Additionally, broken things cost money and can be avoided, draining your resources. You cannot afford to remanufacture and then reship your items due to rising fuel prices, increased client demand, and escalating shipping needs. By doing so, you run the danger of late delivery.
Solution
What if you could choose a hot spot (hub less) freight method and avoid damage and delays right away? The solutions from ABAF Shipping allow you complete control over your collection and delivery dates as well as dependable transportation time. Additionally, because shared truckloads don’t pass through terminals or hubs, they sustain substantially less damage than less than truckload cargoes. Our routes have been optimized to save you time, money, and hassles. Pay no money for delays and damages in the supply chain that may be avoided.
What Are the Effects of Best Logistics Management on Your Business?
You’re under a great deal of pressure to supply your goods to customers more quickly and at a lower cost. Your supply chain will become more dependable, but effective supply chain management will also strengthen your company’s resilience. To succeed, future-proof your business against these five typical supply chain threats. Over time, you’ll discover how to maintain order and quickly recover from setbacks.