Challenges of supply chain management

Supply Chain Management (SCM) is an important way to track goods across departments in real-time, which can be a huge advantage. Despite this, there are several supply chain challenges that are faced with these management systems due to growing complexities.

• SCM's can't do it all - Unfortunately supply chain management systems cannot do all that companies may hope for. Be realistic about what can be achieved and research into how an SCM could help your business.
• Demands - Customers want their products immediately and at a good price, yet this is not always possible and puts companies under a great deal of pressure to provide customers with what they want. It is not always possible for companies to create both quick and remunerative methods due to the demands of the chain.
• Globalisation - Due to these demands, companies are often forced to collaborate with countries in which products can be produced at a lower cost. Despite this, delivery times take even longer, therefore may not be beneficial at all.
• Market growth - Increasing the customer base can be a hard challenge to tackle in order to expand distribution both at home and abroad. There are a number of factors to take into consideration when doing so, including trading policies, fees, and government policies, therefore is not always easy to get to grips with.
• Inventory - Most of the time, companies are unsure about what stock they own and confusion can arise surrounding whether products have been lost due to their SCM system being not as reliable as expected. Money can be lost easily though these false expectations as there is often too much stock to keep track of which as a result is not being sold.

How do you go about solving supply chain management issues? 

• There are many benefits of ERP systems, which can manage supply chain management systems. ERP systems can integrate key information and reduce the hard work for companies by keeping them up to date from start to finish. Companies are expected to monitor stock and market products as well as many other time-consuming jobs. An ERP system offers an easier way to cope with these demands so that companies can get back on track and focus their attention on far more important matters.
• Increased technology means that any disruptions within the delivery process can be spotted right away and therefore can be passed onto customers immediately to avoid disappointment. It may be worth finding technical advice from professionals in the know. Technology should develop quickly over time due to the advancements that are already taking place.
• In order to sustain market growth, companies can make contacts to cut corners and ensure that their products can be delivered on time to a high standard. Ensuring that companies have top contacts in global locations ensures that they are working to find efficiency for long-term solutions.

If you would like to learn more about inventory management and how a WinMan ERP system could benefit your business, please contact us today for more information.