The modern supply chain must evolve to meet new demands and supply chain challenges, and supply chain managers need to plan ahead to keep everything flowing smoothly. A combination of consumer expectations, more routes to market, international complexities and other factors creates significant challenges throughout the supply chain network. Show
In this post, we’ll explore what’s driving some of the main changes we’re seeing in the supply chain. Increased Costs Throughout the Supply ChainProfit margins are under pressure as costs creep up throughout the supply chain network. These costs come from many areas, and a lack of visibility and accountability for reducing them can result in rising operational expenses. Major contributors to increased costs include:
Supply Chain Complexity Due to Multiple Channels to MarketConsumers buy products across multiple channels, and as routes to market increase, the underlying supply chain must adapt. Supply chain managers need to develop variations on supply chain processes to address each of the channels:
Supply chain managers must manage multiple supply chains, third parties and other organizations to ensure a good end customer experience, regardless of how they order and receive products. Consumer Demands Drive Need for Improved Speed, Quality and ServiceConsumers have never had more choice, and every industry is facing disruption. Every touchpoint with an end user needs to be focused on providing excellent products and services. Quality and speed are becoming as important as pricing when it comes to purchasing goods:
The most successful products are those that meet consumer requirements of quality, availability and price. The underlying supply chain is vital to meeting those needs. Risk in the Supply Chain Creates PressureInternational complexity, environmental changes, economic pressures and trade disputes all put pressure on the supply chain. This pressure can easily turn into risks and issues that snowball throughout the network, causing significant problems:
Supply chain managers must develop contingencies and mitigating action plans to prioritize and eliminate risks and manage issues when they occur. The Impact of Supply Chain VolatilityVolatility and complexity don’t just create problems at a specific point in the supply chain, instead the impact can ripple throughout the entire infrastructure. Supply chain managers must deal with these issues promptly before they create delays, backlogs, bottlenecks and other issues. Political circumstances and protectionism are introducing tariffs across trade routes that results in additional fees, delays and increased customs processing time. This means slower international shipping and the ability for competitors in different countries to take advantage of lower tariffs. Increasing volumes of internationally-sourced goods are driving up port congestion. This creates additional pressures as ships, trucks and trains need to wait to load, unload and transfer products. These issues are exacerbated as port authorities and operators charge organizations to store goods at the port. An ongoing, chronic shortage of long-haul drivers is creating major issues with trucking capacity, leading to delays when transporting goods across countries. The pressures on the role of the truck driver is making it a less attractive profession, and logistics providers are finding it more difficult to attract and retain the right people. These are endemic problems in the supply chain, and it’s almost impossible to resolve them on a local or organizational level. Instead, supply chain managers need to understand the major issues impacting supply chains around the world and create strong reporting and management plans to resolve issues quickly. Much of this will be down to predicting problems before they happen, building robust contracts and relying on strong relationship management, collaboration and prioritization to minimize the impact. Other Demands on the Supply ChainOther areas supply chain managers need to consider include:
Stay ahead of your supply chain challenges and demands with Blume solutions, which provide more than just visibility and orchestration. Blume solutions minimize risk, decrease complexity and reduce costs for the entire supply chain ecosystem. Learn more at blumeglobal.com/solutions. Which factors have a major influence on supply's level in the organization?Which factors have a major influence on supply's level in the organization: The ratio of purchased material and services costs as a percentage of total costs or income. the nature of the products or services acquired. The extent to which supply and suppliers can provide competitive advantage.
Which of the following is an example of a benefit that can be realized through improved supplier management?There are many benefits to effective supplier management, including improved quality and delivery of goods and services, reduced costs, and improved relationships with suppliers. In addition, by managing supplier performance, buyers can reduce the risk of disruptions to their own operations.
What is Supply Management quizlet?Supply Management. The broad set of activities carried out by organizations to analyze sourcing opportunities, develop sourcing strategies, select suppliers, and carry out all the activities required to procure goods and services.
What does supply chain management involve quizlet?Supply Chain Management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. Operations Management. Forecasting, Capacity Planning, Scheduling, Maintaining inventory, assuring quality, and motivating and training.
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