Supply chains are complex, and often, supply chain professionals don’t know enough about their own industry to administer a successful and efficient supply chain. This is why supply chains are so important and why they are often called the heart of a business.
A supply chain is a series of activities linking suppliers to all the other parts of the business. In a supply chain process, the flow of products is a recurring pattern and the common factor is that the flow of materials, information, people, and money has to be uninterrupted. The goal of a supply chain should be to ensure that products are produced on time and under budget. The proper functioning of the supply chain is a game of chess, and in order to win, we need to know all the rules.
Here are the four supply chain mistakes and how to avoid them:
Lack of Plan for Business Disruption
A firm’s supply chain is about to undergo a disruptive change. If you are unprepared, you could lose out on future business. We are in the early stages of a new global economic model, and we’ve already seen it happen in the retail and electricity industries. And the latest industry to be disrupted is transportation. In a way, business disruption is a blessing in disguise. If you’re not prepared, it can cause you to lose a lot of money and time. The best way to prepare for business disruption is to think through your response to it.
Disregarding Supply Chain Data
Supply chain issues have long been a problem in the supply chain management community. By far, the most common mistake is overlooking supply chain data, with managers failing to ensure that their supply chains are working efficiently. The supply chain is vital to any company and can be one of the most exciting, fulfilling, and challenging places to work. The supply chain process requires consistent and accurate data to provide the right goods to the right people at the right time. If this data isn’t accurate, it can severely impact the supply chain process. It’s no secret that supply chain management is an important topic and a growing concern for many companies. There are many things you can do to improve your supply chain management, but the majority of them won’t happen without the proper tools. One of the most important tools is data, and the more you have, the better you can understand how your supply chain is performing. The most effective way to get data is to gather it from as many sources as possible, but it can be difficult.
Poor Customer Service Management
When you deal with an unhappy customer, you want to make it right—even if it means spending a few extra hours on getting the customer a new product or a quick phone call to get your team’s attention. Unfortunately, not every business owner is adept at good customer service. Instead of taking the time to address a customer’s concerns, some companies just let the matter go to the customer. There’s no arguing that good customer service is crucial to a company’s long-term success. If a business fails to provide an excellent customer experience, its customers will turn to another one, which will then mean that they will lose out on business, and so on. In order to provide a superior customer experience, a company needs to think about how it interacts with its customers, including how it communicates with them, what it says to them, how it behaves towards them, and so on. A company should also make sure that it provides an excellent service level, regardless of what type of service it offers.
Unsuccessful Cost Reduction
How do you cut costs in a supply chain? Most people would answer by decreasing the number of suppliers, and some say you should do this by seeking out cost-effective manufacturing partners overseas. While this may be a good idea, many supply chain managers opt for a different approach. Rather than trying to reduce the number of suppliers, they focus on reducing the total cost of their supply chain by doing things differently.
Supply chains are complex systems operating on many levels and touching every industry and organization in our world. We spend a lot of time interacting with them.