There are several challenges Supply Chain Management professionals face in day to day life. for creating and keeping an efficient supply chain it is necessary to know about these challenges. The following are the five important challenges faced in Supply Chain Management Industry today.
1. Service to Customers
It is essential for Supply Chain Management professionals to provide the right products and services in the right quantity and quality at the right location at the right time. If any of these part of the definition is not met there will be many consequences going to happen in the Supply Chain. So it is essential to keep the customers happy through proper management of the Supply Chain.
2. Controlling Cost
As there will be rise or decline in fuel costs and freight costs the cost of the product also varies over a period of time. This changes the operating costs is a critical factor for business with more customers because it will affect the labour charges. The addition of regulations imposed by the governing bodies also changes the price of products. Due to this controlling cost is a challenge as far as Supply Chain management is Concerned.
3. Planning
For smooth functioning of Supply Chain management, it is necessary to do assessments regularly. The changes that are occurring must be regulated with proper planning in supply chain management. Launching of new products, availability of credits etc needs to be checked during the planning phase.
4. Relationship Management
It is essential for the supply chain managers to maintain good relation with the suppliers and customers for the proper functioning of the organization. Various possibilities to connect with the suppliers for tracking of the shipment and measuring performance is essential to maintain cordial relation with the customers.
