Are You Making These Common Mistakes in Supply Chain Management?

on March 13 | in Business | by | with No Comments

Supply chain management is a very delicate process where accuracy is of the utmost importance. Poor supply chains can cost a business thousands of dollars. Many industries face issues with supply chain because this is one area that is usually treated as an afterthought.

Improving supply chain management can give you plenty of benefits, so streamlining it can yield tangible results. Additionally, there are some mistakes that are not only easier to fix but also very common. Are you making the same mistakes as well? Take a look at the following and find out.

1.   Archaic Infrastructure

This is a common mistake that many businesses don’t look to fix until they’re stuck in an issue. Old and archaic infrastructure practices need to be updated or removed completely. There are many businesses who don’t think that there’s anything wrong in their supply chain management system.

However, just because it worked 15 years ago, doesn’t mean that it is delivering you the same accuracy and results. Don’t be afraid to update your system or switch it up if needed. Review the overall performance output you are getting and see which areas have room for improvement.

2.   Speeding Up Protocols

It’s good to have a system that is fast and yields more results. It’s a common belief that speeding up your protocols will also speed up overall productivity. On the other hand, this not only creates a more rushed result, but you’re also left with little room to maneuver in case there is an emergency. Never rush protocols or try to implement shortcuts.

With supply chain, your product is the one that is on the line and by speeding up your regular protocol; you could end up ruining the end product. Instead, try to implement protocols that focus on improving effectiveness and the work process without depreciating the product here.

3.   Not Testing New Systems

Always test out new systems to know how they will work with your supply chain. This is an important area and one where many supply chain management systems can fail. When you’re getting new systems, you need to know how it will perform. This means that you give it a test run, monitor the results, notice areas of improvement and then implement it.

New systems also come with a learning curve for everyone, so keep this in mind. The less time you spend in testing the system, the more mistakes you will have to handle when you’re using it in real time. Stress test it, put it through the ropes, and give it a heavy run before you implement it permanently.

4.   Lack of Awareness of Raw Materials

More consumers are holding brands responsible for the economic and environmental damage caused in society. It’s a good idea to be aware of how and where the raw materials are being sourced from.

Many managers are not aware of this area in supply chain management and are like deer caught in the headlights when this question arises. The major reason why this is an issue is because of the public backlash and boycotting that you can face in this matter.

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