Challenges In Supply Chain Management

850 Words4 Pages
The various challenges that the organizations worldwide need to get grips with are: 1. Technology Supply chain is the flow of resources and goods from point of generation to the customer. This also includes flow of vital information to ensure swift, effective and efficient coordination among the process. Thus technology plays a crucial role not only in the handling of materials but also of information. But the cost and the knowledge involved in integrating the supply chain with technology is one of the biggest limitation for developing a sustainable supply chain for majority of organizations. 2. Controlling the cost Another major challenge is to tackle with the operating costs. Rising fuel prices, stringent labor laws, advancement in the required…show more content…
Supplier performance management is the process of measuring, analyzing and managing the supplier performance for the purpose of reducing costs, mitigating risks and driving continuous improvements in operations. The supplier performance management enables the frequently changing demand meet with the supply, new product introduction and development, adding value to end users, foster loyalty and support. As technology advances and products become complex, supply chain managers have to increasingly rely on their suppliers to assist in new product introduction and development. By building sound relationships with the supplier, supply chain management professionals can foster loyalty, understand the full capabilities of suppliers and secure valuable support. These efforts can often be literal life savers. Unfortunately, this is a practice that is being ignored by many companies these…show more content…
Planning and Risk Management Risk management is proving to be one of the most critical deliverables for an organization to ensure an efficient supply chain and also existence in the market. The recent economic crises with supplier defaults have urged the need for an effective risk management system ensuring business continuity and profitability. Failure to identify potential risks and a strategy to mitigate them would eventually jeopardize the business continuity of the company. Thus small and mid-sized companies need to create robust risk mitigation strategies addressing critical supply chain related risks including supplier financial health, exit and replacement strategy, general outsourcing operations, anti corruption due diligence and commodity price volatility being a few of them. 7. Dearth of Expertise A major challenge supply chain management these days experiences is the difficulty in finding qualified and interested talent. The field, unfortunately, is not being able to attract young and dynamic minds. The domain of supply chain requires specialists with substantial understanding and competencies to keep up the pace with the dynamically changing needs of the field of supply chain. How do they do
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