Do supply chain challenges give rise to any opportunities and why are supply chain performance information important, and how can it improve a supply chain?
I am not an industry expert or PhD in the supply chain field. I took Supply Chain Management (SCM) as one of my undergraduate courses when I studied industrial engineering, and it became one of my favorites. Challenges are inevitable in every business venture, even small challenges in any stage of the supply chain will hamper the production process right after that stage. Generally, the supply chain has certain stages such as vendors, logistics, manufacturing, distribution, product support, and retirement. For example, failing to supply raw materials from vendors will hamper all stages after it. If the situation has reached a point where vendors can no longer supply the raw materials, it can lead to the complete retirement of the product line.
But challenges in the supply chain are not always doom. Rather, they can be windows of opportunity. Any challenges in the supply chain stage would make us realize other improved techniques of manufacturing or supply of alternative high-quality materials. It can also help to release alternative product concepts without requiring traditional manufacturing techniques.
On the importance of Supply Chain Information:
Supply chain performance information is crucial for several reasons. It provides insights into the efficiency, reliability, and responsiveness of the supply chain processes. This information helps organizations make informed decisions, identify areas for improvement, and optimize operations. By tracking key performance indicators (KPIs) such as on-time delivery, inventory turnover, lead times, and customer satisfaction metrics, companies can evaluate their supply chain's effectiveness and identify opportunities for enhancement.
As said, the supply chain challenges can improve the raw material quality, lead time, improved manufacturing techniques, understand the vulnerabilities in the supply chain. Additionally, by improving operational efficiency, reducing costs, increasing responsiveness to customer demand, and fostering collaboration across the supply chain network.
As a researcher in the field of logistics, I have been able to identify some aspects to take into account in supply chain management:
1. Seek to integrate circularity within the supply chain.
2. Adequate supplier management should be carried out, so that suppliers are properly selected according to the needs of the company and performance is monitored.
3. It is necessary to optimize processes to reduce the use of resources, minimize waste and manufacture according to the projected demand.
4. Safety stock must be kept; although the concept of zero inventories has been generated, the pandemic has taught us to have quantities that avoid stock-outs.
5. Apply reverse logistics strategies for the optimization of resources, especially in the transportation of goods.
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