5 Universal issues in Global Supply Chain

Of course in any job there are a million and one things that can go wrong, however in any industry there are also universal challenges that affect every aspect of your career. This article is written to discuss 5 specific challenges faced by people in the global supply chain industry.

  1. Slow Technology adoption

Today’s largest technology trends, especially trends in preparation and production such as Plan for Every Part and Each Section Every Period, allow planners to look at the whole supply situation and confirm the efficiency of production applications for on-time delivery and improved customer satisfaction.

  1. Environmental Disasters

Firmly rooted in the external threat camp, natural or environmental disasters are among the disturbance risks. Particularly as the effect of global climate change continues to ripple throughout the world, manufacturers will need to know about their carbon footprint and the impact their operations have on the climate worldwide. In addition, companies must address the potential for a natural catastrophe in creating and deploying their supply chain management platform. One example to keep in mind is hurricanes. You better believe that an area that has experienced extensive flooding is going to experience a huge influx in demand for dry wall. Or if a news organization releases a statement that burglars are most likely to enter through an unlocked window. You better believe there will be a large influx of people trying to burglar proof their windows with windows sensors and glass break sensors

  1. Poor Forecasting

The capability to accurately plan for and forecast demand based on distribution and past production is one of the core drivers in promoting manufacturing programs that are sustainable and avoiding disruption. As we mentioned previously, intelligent software solutions and their capacity for E2E visibility is a significant role in accurate preparation and forecasting, however, a basic understanding and strategizing of a manufacturing firm supply situation and production capacity is also crucial in these attempts. Insight and understanding into the reach of the production network – transportation management, lawn management, container management, and facility capacity of a company – are value-added propositions in assigning production programs to the hub at the right time.

  1. Government Regulations

Another danger of supply chain disruptions, governmental regulations and restrictions are becoming a hurdle businesses have to overcome in their supply chain management strategy, especially as the worldwide production network becomes more disparate and enters emerging markets and new developing nations. Trade restrictions, taxations, border controls, and labour laws are elements that managers and planners must address in crafting supply and creation strategies. For example, a manufacturing company looking to transfer component parts from a hub in Mexico to a facility in Dallas, Texas must account for additional lead times in U.S. customs inspections and regulations. Failure to address this stage in delivery and transportation could lead to orders not being filled as scheduled.

  1. Changes in transportation costs

Fuel costs. Route efficiency. Port complications. Chassis vs. rail. These are just a couple of the issues managers and planners must consider in regards to the transportation of parts and goods to customers throughout the globe, when strategizing ways to avoid disruptions. While detailed metrics, analytics, and reporting can be crucial value propositions in preventing freight-based disruptions and leveraging lean transportation fundamentals, a strong transportation management strategy should include contingency plans with freight partners to ensure the continued movement of products should a disruption occur. In addition, planners and managers must also consider container and lawn management factors as they can be critical in ensuring the perfect component parts are in place at the time for production programs.