Traditionally, supply chains have not been constructed around the concept of adaptability. There is a lack of agility and they don’t foresee market shifts. As a result, when faced with shortages or changes in demand, these systems are vulnerable to breakdown.
Additionally, the logistics industry has been hesitant to adopt the latest technology. The rest of the world is using cloud technologies to break down barriers and consolidate communication, but corporations are still using fragmented applications and tools to manage orders, evaluate inventories and dispatch items.
All of these problems were brought to light and made worse by the pandemic that broke out across the world. In a report from Accenture, 75% of companies have had negative or strongly negative impacts on their businesses from the supply chain disruptions from the pandemic.
Shortages led to an increase in prices and empty shelves as the result of a domino effect. We’re in the midst of a major game of catch-up right now as we try to restore an efficient flow of commodities from one location to another in the face of the world’s largest backlogs. A fundamental shift in supply chain management is required now, even though experts predict that we will eventually catch up.
Here are a few issues that can be seen in the supply chain issues up to this day.
Matching customer expectations
As the demand for one-day delivery has increased, the entire supply chain process has been reshaped by customers. As you may imagine, there is a lot of competition out there. It’s possible for them to choose a similar product from a competing supplier that claims to deliver faster, which means that you will lose one of your customers. Delivering on your promises is the best way to ensure that your customers remain loyal to you. There are other considerations, such as customer satisfaction, that must be taken into account when lowering the projected delivery date. If your product or service does not meet client expectations, swift delivery will not save you. After the product has been purchased and delivered, customers want to know that they can rely on customer service from start to finish. You’ll lose customers if you provide them anything less.
Keeping it cost effective
Keeping costs down while speeding up delivery is a difficulty that many businesses have to contend with. In order to meet short delivery deadlines, you’ll need to stock up on supplies ahead of time. To put it another way: if the product doesn’t sell, you’ll be on the hook for the manufacturing costs and the loss. A lot of companies are making the switch to just-in-time delivery strategies to avoid this problem. In addition to saving money for the company, low-volume manufacturing implies that the items are of a higher quality and are delivered with care and precision.
Constant update and communication
To meet the demands of today’s customers, it is essential that they be able to track their orders in real time. This means that they prefer to keep track of the order throughout the delivery process and expect you to meet your delivery deadline. A well-staffed customer support department will be especially important during this critical period, when questions about delivery times are most likely to arise. Customer dissatisfaction and a poor purchasing experience could result from a poorly-answered question. Furthermore, they have little faith in the application’s ability to function consistently across various platforms. Meaning that once they’ve picked out certain things from an online catalogue, they can seamlessly switch to the mobile app and complete their purchase without stopping in between visits to the desktop or laptop.
Accuracy in inventory management
Increased stock keeping is required for e-commerce businesses. When it comes to storing high-value electronic products, you can never have too many on hand, but having too few risks missing out on business opportunity. The most difficult part of running a business is keeping track of your inventory, which has a direct impact on profits and losses. Customers may be unable to place orders if you have insufficient inventory, which benefits your competitor. Conversely, keeping an excessive number of items on hand may result in unused inventory. Stocking inventory needs to be planned meticulously, especially for high-end devices, which become obsolete every six months. Inventory management is an area where technology and automation may help you keep track of available inventory accurately and minimise any shortages.
Inadequate infrastructure management
Having a well-planned layout for enhanced mobility and visibility in the warehouse is all that is required here. Effortless picking and packing are essential, and the arrangement should maximise the available area in being efficient as possible. As a result, introducing warehouse management systems (WMS) can help to streamline the warehouse. A mobile app or having it at the touch of the hand for such software also makes it possible for workers to maintain track of the warehouse without having to leave their workstations. This will allow the business to keep up with timely orders.
“Supply chain and logistics is at a breakneck speed in terms of technological investment and technological advancement” and “It’s about finding the right technology fit that meets the business needs, proper implementation, and customisation”Bernard Hor, CEO of Hatio
Looking into the future, logistics will rely on cloud supply chain technology. Companies can move forward even in a chaotic environment thanks to a dispersed network with centralised intelligence. Make sure to be up to date with your business to ensure your business is future proof for years to come.