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4 Common Supply Chain Pitfalls and How to Prevent Them

 

The role of the supply chain in an enterprise’s operations are changing. Businesses continue to create value for their customers by providing fast delivery right to their doorsteps and optimizing websites for more convenient mobile experience. While these changes are occurring, several supply chain pitfalls also emerge. This should not be a surprise, considering the number of suppliers involved in a single project. While you may do everything to prevent these problems, the real challenge comes in dealing with them after they happen.

  1.   Non-compliance
    Your business needs to be up to date with the latest supply chain regulations. Every geography you operate in has unique requirements that you should comply with. For instance, you are exporting your products to Peru. The country has unique invoicing and tax reporting requirements. Only one missed requisite will hold up delivery of your products to your target market and you may end up facing sanctions.
  1.   Poor Information
    Supply chain pitfalls often happen when you use outdated information. You cannot use past trends to predict the future performance of your business. You need an accurate view on the supply and demand chain operations in order to accurately forecast what your business needs, when and where you need them. For instance, you are shipping computer parts. Data reveals that 40% of your deliveries are delayed for ten days at most. You should use this information to revise your shipment cycles by tracking your delivery performance and keeping your customers appraised of the delivery status.
  1.   Poor Collaboration
    If a customer orders multiple items supplied by different divisions and demands receipt of all items in one receipt, you will have to use a merging center. Poor collaboration could result to products not being shipped on the target date, and ultimately poor customer service. At the same time, your inventory builds up. As a result, some divisions will expedite deliveries which is both unnecessary and expensive. A collaboration platform allows your employees to share information and solve business problems efficiently.
  1.   Lack of Communication
    Lack of communication can cause tremendous problems in the supply chain. If you are not sure what supplies are reaching your manufacturers or if they are being delivered on time, the effect can be like dominoes. For instance, if the shipment arrives late, the assembly gets held up and the delivery is delayed. The issues and complications will continue down the line and all the way to your customers. To rectify this, you need to have full visibility in all aspects of your supply chain. After all, you cannot make adjustments if you don’t know that you need to.

To successfully manage your supply chain operations, you need to turn these 4 supply chain pitfalls into opportunities. Increased communication and integration improves visibility and ensures that accurate information is being shared in all stages of the supply chain. To provide the best possible products to your customers, you need end-to-end visibility which is only possible with an efficient and cost-effective foundation. With the right systems in place, you can identify these problems early and take immediate action to minimize disruption in your processes.

Appterra offers cloud integration and supply chain management solutions that enhance collaboration and visibility among global trading partners. Our commerce platform is used by companies all around the world to simplify integration, automate processes, and streamline data flow – preventing the rise of the  supply chain pitfalls. Our servers are also deployed on a market by market basis which means our applications exist in actual regions and countries to enhance compliance. Check out our solutions here: https://appterra.com/solutions/

Charlie Alsmiller

Throughout his career, Charlie Alsmiller has focused on customer problems in difficult industries such as Energy and Telecommunications. Prior to starting Appterra in 2005, Alsmiller was VP of Global Operations for Allegro Development, a leading provider of software for the energy sector. He has also served as president of OmniSpace Technologies, a leading SaaS provider that he founded in 1999. He spent over 10 years in the consulting world with Price Waterhouse and Deloitte Consulting, where he participated in a wide variety of projects for very high profile clients. Mr. Alsmiller holds a BBA from Baylor University in Management and Information Systems and a MBA from the University of Dallas in International Business. Specialties: Technology ventures, Enterprise Software, Contract Negotiation, International Operations, Private Equity, Product Management, Strategic Alliances, Software Implementation, Software Development

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