Having an excessive number of partners
Supply chain management strategies frequently aim to find a reliable supply of back-up products and services. There may come a point where adding additional supply chain partners is more trouble than it’s worth.
When you have too many partners, you may not be able to get along with any of them. An expert says it is difficult to meet the information and feedback needs of the entire supply base if you have too many vendors.
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Second, bad vendor relations.
Investing in good relationships with your suppliers may be more important than getting the lowest price from them. If your vendors know they can rely on you for timely payments and accurate information, you’ll have better customer service, smoother operations, and happier employees.
Geoff Annesley, executive vice president for One Network, a Dallas-based cloud platform designed to optimize trading partner business networks, says that good relationships benefit both sides of the supply chain transaction. There is a trust issue at play here, “he says. Annesley thinks so, too. Relationship improvement is much easier when you put your faith in your partners’ signals and listen to their advice. “
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Three: Silos of work
It’s no longer possible to operate a global supply chain in the 21st century by separating manufacturing from marketing and shipping from accounting. Networked organizations are better able to collaborate on supply chain management than siloed ones.
Sharing processes and not being siloed are two of the most common mistakes. “Experts say this: There are a lot of companies that get siloed as they grow. That’s a recipe for disaster. “
Four: There is a lack of focus on process improvement and automation.
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Making your global supply chain as efficient as possible isn’t the only goal of streamlining it. The entire supply chain should be optimized and automated whenever possible, from manufacturing to customer returns.
Due to inefficient processes and a lack of automation in accounts payable, experts say you only need to pay one vendor’s invoice late to paralyze your supply chain. There’s a delay in the approval process when a customer is placed on a credit hold after placing an order, “he responds. When it comes to getting a loan, having a good credit rating and being proactive about paying your bills are essential.
Five: There is a lack of openness.
As recently as a few years ago, supply chain management strategy was unfamiliar with the concept of transparency, as buyers and sellers fought over internal information in order to avoid revealing their secrets. Increasingly, the concept of transparency encompasses not only the sharing of financial information but also the ability to grant partners access to your inventory.
“An atmosphere of trust, openness, and cooperation.” This will ensure that you are working on the same workflows and that there is no break in the flow. You’re not stuck in a rut of resolving your differences and avoiding trusting your loved ones.
Errors in the supply chain are increasing at an alarming rate.
While these are some of the most common supply chain management blunders, the field is rife with other potential pitfalls for the uninitiated. Additionally, supply chain performance may be hampered by methods that appear to be speeding things up at the same time.
To illustrate his point, an expert makes reference to the idea of “perfect order.” “profile picture.” “You’ll often hear people discuss the ideal sequence of events and the characteristics of an ideal sequence,” he asserts. Distribution centers were designed for the perfect order fifteen or twenty years ago, with customers incentivized to make their orders look that way.
According to him, companies may offer discounts to customers who order a full pallet in order to streamline operations and keep costs in check at distribution centers. Because it didn’t address buyers’ concerns, this is incompatible with modern supply chain management strategy’s emphasis on collaboration.
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Not having shared processes and working in silos are two of the most basic mistakes. Many companies, as they expand, develop internal silos. The result could be catastrophic.
“More options for customers,”” expert says, “They don’t want to be forced to follow a predetermined order profile. However, many people are still expecting everything to fall into place exactly as it should. ” Organizations should rethink how they reward customers for placing orders if they want to improve supply chain relationships and avoid setting operations up for perfect orders that don’t arrive.
Future Improvements
There will be an increasing emphasis on using cloud-based supply chain management systems and other cutting-edge technologies in the future to help companies avoid the kinds of errors that slow down supply chains.