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Software can play an important part in improving supply chain processes. However, taking on new technology generally brings with it some level of risk, especially if it challenges existing processes and business culture.

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    Common problems in the implementation of supply chain softwareSuccess factors for new software implementationCultural challengesBusiness environmentSingle-sourcingRising CostsLack of data and insightsCompliance with International RegulationsWhat are the major obstacles to successful implementation of supply chain management?What are the barriers to the development and implementation of supply chain management strategy?What are the obstacles in the supply chain?What are five key obstacles in supply chain?

Common problems in the implementation of supply chain software

Challenges with the implementation of new software commonly include:

    suppliers and partners unwilling to compromisestaff struggling to adjust to new processes and toolslack of practice and training before implementationdifficulties with communication internally and externallycustomers concerns, issues and poor experience

To avoid these risks, you should consult, negotiate and communicate with all members of the supply chain before the new system goes live.

Success factors for new software implementation

As a first step, consult with both your suppliers and your customers. Some businesses may not be used to sharing the volume of information that a supply chain software is capable of transferring. Customers may also highlight existing problems with your current system, and suggest ways to improve it, removing the need to invest in new software.

Cultural change and better information sharing can address many common supply chain issues. For example, you can negotiate agreements with customers and suppliers. These make a general framework to cover multiple purchases, allowing for products to be ordered or cancelled as and when needed without needing individual purchase contracts. You may then identify changes to quantities, intervals and delivery patterns that benefit all parties.

You can share information between supply chain partners on:

    inventory levelsdemand forecastscustomer ordersdelivery information

Cultural challenges

Within the organisation, changes to purchasing processes can transform supply chain performance. Keeping stock to a minimum, or availability of material an optimum level, can reduce costs and improve performance, avoiding the need to implement new software.

Before you decide to roll out new supply chain technology, make sure that you have valid reasons to use supply chain software.

Every industry has a network comprising suppliers, producers, intermediaries and customers spread across the globe. In spite of perfect design assessment, cost management tools, demand-supply estimation, a company cannot achieve success unless it follows Supply Chain Management.

Supply Chain Management- Management of the flow of goods, information and finances amongst the business networks. The success of the Industry relies upon the fact of how well you manage your supply chain the global level. When we talk of Supply Chain Management, there are unlimited challenges that each industry ought to face.

"The real competition is between supply chains, not companies." Martin Christopher 

In order to ensure smooth functioning, supply chain managers should be well-aligned in advance with all the challenges that are running in the competitive market.

Here is the list of the top five Global Supply Chain challenges affecting businesses.


Business environment


Economic pressure, trade dispute and global health issues impair the supply chain massively. With time, these risks can cause downturns in the Supply Chain Management system. 

Solution:

Proper planning followed by effective Supply Chain Management and Coordination to handle the differences in regulation, taxation and time zones. 


Single-sourcing


Many companies depend on a single source to obtain raw materials and other finished products. The companies that prefer to rely on a single source, naturally make themselves prone to the Risk of Failure In The Long Run. 

Solution:

Don’t make OMNICHANNEL the only channel!! 

Companies shouldn’t rely on single-source rather, focus on implementing risk mitigation strategies. Develop an innovative way for Supply Chain.


Rising Costs


The rising cost of transit, energy/fuel, labour and other factors create an upward thrust on operating costs. As a consequence, the costs rise to an extent where it has to be borne by the end consumers. And, if your product becomes expensive, without any doubt your company shall lose the race.

Solution:

Brands ought to invest in technology to reduce the negative effects of rising costs. Also, the management should utilize the available information and make the best possible judgment in regard to all the elements in the supply chain. 


Lack of data and insights


Businesses often complain of not having sufficient information to make decisions. Lack of data and insights sometimes leaves them paralyzed. Thus, it becomes complex to analyze the alternatives and other scenarios to make decisions that comply with the company’s interests. 

Solution:

The managers must be intelligent enough to interrogate the given data so that they can come up with an optimal solution. 


Compliance with International Regulations


Complying with the International Regulations can be a daunting process as the Quality Standards, Import & Export restrictions, Packing & Labelling regulations vary across the globe. Companies need to ensure that materials provided by a foreign supplier meet the domestic regulations.

Solution:

Companies that obtain materials from foreign suppliers should have first-hand knowledge and expertise to interpret the regulations. Thus, ensure the best solution to managing the Supply Chain.

Conclusion:

Regular investment is needed in your Supply Chain Analytics for smooth Supply Chain Management. Companies that are looking to expand globally, need to stay proactive and take on the challenges in the smartest way possible. 

What are the major obstacles to successful implementation of supply chain management?

What Are the Main Supply Chain Challenges?. Increased Costs Throughout the Supply Chain.. Supply Chain Complexity Due to Multiple Channels to Market.. Consumer Demands Drive Need for Improved Speed, Quality and Service.. Risk in the Supply Chain Creates Pressure.. The Impact of Supply Chain Volatility..

What are the barriers to the development and implementation of supply chain management strategy?

2.2. Barriers to SCM.

What are the obstacles in the supply chain?

Shippers' Top 5 Supply Chain Challenges: Keeping transportation costs down. Keeping up with customer/industry demands. Sourcing consistent, reliable carrier capacity. Keeping up with the latest technology solutions and demands.

What are five key obstacles in supply chain?

The following are 2022's biggest supply chain challenges faced by product-based businesses from all over the globe.. Material scarcity. ... . Increasing freight prices. ... . Difficult demand forecasting. ... . Port congestion. ... . Changing consumer attitudes. ... . Digital transformation. ... . Restructuring. ... . Inflation.. Tải thêm tài liệu liên quan đến nội dung bài viết What are the obstacles of developing and implementing supply chain strategies?

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