Professional Documents
Culture Documents
c. Risk factor: -
The supply chain is put under strain by international complexity, environmental
changes, economic demands, and trade disputes. This stress can quickly escalate
into hazards and issues that spread throughout the network, producing major
concerns:
Suppliers, manufacturers, logistics, clients, and customers are dispersed
across several nations, time zones, and continents, necessitating meticulous
coordination and administration.
Adding more steps to the supply chain increases the upstream and
downstream partners' complexity exponentially.
Reporting, business intelligence, and good decision-making become more
challenging with siloed data and a lack of insight.
Strong agreements, contracts, and controls with supply chain companies are
required for regulations, compliance, and quality management.
d. Unforeseen Delays: -
Unfortunately, high lead times can cause even more delays in your shipments. There
are numerous potential for things to go wrong in the global supply chain because
there are so many steps and such enormous distances for commodities to go. While
obtaining materials and products may be simple, delivery may not always be on time,
especially due to time variations and a wide range of shipping time limits. Delays like
this are normal when things are acquired from separate nations.
e. Fast changing markets: -
It's challenging to keep up with and adapt to the range of developments in the
industry since technology advancements change our markets on a daily basis.
Companies, on the other hand, would have to be more flexible in order to remain
efficient in these changing times.
f. Increasing cost: -
Profit margins are being squeezed as costs rise across the supply chain network.
These costs arise from a variety of sources, and a lack of awareness and
accountability for lowering them can lead to increased operational costs.
j) Overall, what has been the learning outcome from this project?
It's impossible to avoid change. We must surely manage the way we adapt to
change by employing logistics management software. We are able to go with
the flow and increase our overall production.
Always have a risk management plan in place for how your organisation will
be able to deal with interruptions in operations. After all, logistics management
is essential to the operation's success.
You will be able to give your customers with high-quality products in a timely
manner if you establish a mutually sound and harmonious connection with
your partners or suppliers. This also provides for the creation of possibilities
for performance enhancement.
Using automations to calculate these KPIs on your behalf is, without a doubt,
the finest method to improve forecasting. To avoid stockouts or inventory
shortages, eCommerce vendors strive to strike a balance between their
inventory levels, warehousing expenses, and client demand. Merchants can
stock up with confidence based on projected product demand and/or sales
thanks to automatic inventory notifications, forecasting tools, and cash on
hand. Furthermore, prioritising forecasts can help to streamline inventory
counts and cut down on unnecessary overhead costs.
**********