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Supply Chain Challenges



Kirjoittanut: Saniat Amin - tiimistä Crevio.

Esseen tyyppi: Akateeminen essee / 3 esseepistettä.

KIRJALÄHTEET
KIRJA KIRJAILIJA
Syed Saniat Amin
Esseen arvioitu lukuaika on 6 minuuttia.

Introduction

This study of the literature looks at the several supply chain problems that businesses are now facing. With the development of technology, the introduction of new procedures and technologies, and the growing complexity of the global economy, organizations are continuously responding to these changes and adapting to them. Examining the many obstacles and approaches taken by organizations to overcome them is what the literature study will do. Supply chain complexity, supply chain resilience, supply chain optimization, visibility, and risk management are a few of these difficulties.

Supply Chain Complexity

Global supply chains of today are extremely complicated, including several suppliers, clients, and partners who operate on different continents and nations. This complexity raises the possibility of misunderstandings, delays, expensive errors, and inefficiencies. Organizations also need to manage their supply chains under the limits of dynamic economic and regulatory environments, as well as the interruptions brought on by pandemics and natural catastrophes.

A few companies have responded to this complexity by implementing sophisticated supply chain management systems that improve efficiency, boost transparency, and save expenses. These tools, which include enterprise resource planning (ERP) systems, enable businesses to better monitor and manage their supply chains by automating data gathering and analysis (Bandara & Jayawickrama, 2021). Additionally, businesses are using the Internet of Things (IoT) to their advantage to get real-time supply chain analytics. Organizations may have insight into each step of the process by integrating all supply chain components, which enables them to promptly detect and resolve any issues. Last but not least, businesses adopt digital transformation, using tools like machine learning and artificial intelligence (AI) to automate and improve their supply chains. Organizations may lower expenses, boost productivity, and improve customer satisfaction by automating manual procedures (Tavana, 2020).

To maintain an efficient and cost-effective supply chain, companies must embrace cutting-edge technology and reassess their operational procedures in light of the intricacy of today’s supply networks. Organizations may make educated decisions and improve operations by utilizing the newest technology to obtain real-time information about their supply chain.

Supply Chain Risk Management

The necessity of controlling global supply network hazards is acknowledged by the developing field of supply chain risk management. The success of the supply chain depends on identifying possible risks and creating plans to reduce them. In addition to the financial and operational risks involved, risk management techniques handle the risk related to suppliers, consumers, and the environment (Munir, 2020).

The first stage in controlling supply chain risk is risk identification. It involves recognizing possible hazards like hiccups in the supply chain, problems with quality, or monetary losses. It is necessary to create mitigation methods when hazards have been recognized. These tactics might involve actions like introducing quality assurance procedures, employing various sources for procurement, or diversifying vendors. To make sure that risks are being managed successfully, it is crucial to monitor and evaluate the methods that have been devised. It may entail keeping tabs on the performance of suppliers, following up on client orders, and carrying out routine audits.

Organizations should also think about putting in place a risk management system to keep tabs on any hazards and their development. Ultimately, it is important for firms to assess their plans and make necessary adjustments. It might entail looking over supplier agreements, rating suppliers’ output, and getting input from clients. Through this approach, companies may guarantee that their supply chain risk management tactics continue to be efficient and current (Munir, 2020).

Supply Chain Visibility

An organization’s method for tracking and monitoring its supply chain activities from the source of raw materials to the final client is called supply chain visibility, or SCV. Global location systems (GPS), barcoding, and radio-frequency identification (RFID) enable SCV. With the use of these technologies, businesses can more accurately identify, track, and keep an eye on their shipments and products, providing them more knowledge and control over their supply chain (Nayak, 2022).

With SCV, businesses can keep tabs on the whereabouts of their goods and shipments as well as gather information on their suppliers, clients, and stock. Then, by using this data, suppliers, consumers, and other supply chain stakeholders can communicate and coordinate better. With this data, businesses are better able to predict the orders and wants of their clients, modify their production schedules to suit those needs, and give more precise delivery dates (Sahoo, 2022).

Moreover, SCV may assist businesses in locating and removing any inefficiencies in the supply chain and enhancing customer support in general. Increased supply chain visibility enables firms to promptly detect and resolve potential problems, enabling them to react to client requests with better accuracy and speed.

To sum up, supply chain visibility (SCV) is a crucial instrument for businesses trying to streamline their supply chain processes. Organizations may enhance their ability to respond to client requests and have real-time insight into their supply chain by utilizing barcoding, RFID, and GPS technology. This ultimately results in higher customer satisfaction and better business outcomes.

Supply Chain Optimization

The process of evaluating and enhancing the effectiveness of a business’s whole supply chain, from suppliers to customers, is known as supply chain optimization. It involves discovering opportunities for process improvement, optimizing workflow, and applying analytics to inform better choices. According to Nunes (2020), supply chain optimization seeks to lower expenses while raising customer satisfaction.

The process of supply chain optimization begins with the identification of improvement areas. It entails figuring out how to save expenses while boosting effectiveness and efficiency. Additionally, businesses should evaluate their present supply chain procedures to find any inefficiencies or redundant steps. The following stage is to create solutions that deal with these problems after areas that need improvement have been identified. The creation and application of analytics to gauge performance is the next stage. Businesses may use analytics to examine their supply chain operations and make informed decisions. It can offer perceptions into supplier performance, consumer demand, and other areas in which enhancements are possible. The next stage is to create a plan for implementing the adjustments when the analytics have been put into practice. It can involve developing new procedures, putting new technologies into use, or altering the way inventory is handled. Businesses ought to think about educating their employees about new procedures and technology (Bentalha & Hmioui, 2019).

Supply chain optimization is a continuous process that has to be continuously monitored and modified. Businesses should regularly assess performance and make necessary adjustments using data and analytics. Organizations may make sure that their supply chain activities are operating as effectively and efficiently as possible by adhering to this procedure.

Supply Chain Resilience

The capacity of a company’s supply chain to react swiftly and efficiently to problems in order to preserve customer service standards is known as supply chain resilience. It is the capacity to bounce back from unexpected events or shifts in the outside world with agility and adaptability. As businesses depend more on international supply networks, supply chain resilience is becoming more and more crucial. Many have already witnessed interruptions from pandemics, natural catastrophes, and other unanticipated occurrences (Centobelli & Cerchione & Ertz, 2020).

In order to construct robust supply chains, companies must first evaluate the risks and weaknesses of their existing supply chains. It entails being aware of the possibility, possible effects, and tools and tactics available to lessen the risks. Additionally, businesses should have backup plans and make sure they have access to different suppliers and sources of supplies.

In order to effectively predict and handle interruptions and uphold customer service standards, businesses should also invest in technology such as supply chain visibility platforms, inventory management systems, and artificial intelligence. In order to enhance communication and cooperation, companies can also think about forming alliances with other supply chain participants and third-party logistics providers (Ganesh & Kalpana, 2022). Additionally, companies need to be ready to modify their supply chain strategy as necessary. It might entail modifying manufacturing and delivery procedures, raising inventory levels, or modifying sourcing tactics. In order to enhance communication and cooperation and guarantee supply continuity in the case of an interruption, companies should also work to fortify their relationships and develop trust with their suppliers. Organizations may make sure that their supply chains are robust and capable of reacting swiftly and efficiently to interruptions by implementing these measures. It will ensure that even in the face of unforeseen circumstances, customer service standards are upheld.

Conclusion

The many supply chain issues that firms are currently facing have been looked at in this literature study. It has examined supply chain resilience, risk management requirements, supply chain visibility and optimization technology, and the growing complexity of the global supply chain. By comprehending these problems, organizations may be better equipped to react and adjust to the changing environment.

References

Bandara, F., & Jayawickrama, U. (2021). Emerging Interactions of ERP Systems, Big Data and Automotive Industry. In Advances in Software Engineering, Education, and e-Learning: Proceedings from FECS’20, FCS’20, SERP’20, and EEE’20 (pp. 863-877). Springer International Publishing.

Bentalha, B., Hmioui, A., & Alla, L. 2019. The digitalization of the supply chain management of service companies: a prospective approach. In Proceedings of the 4th International Conference on Smart City Applications (p. 1-8).

Centobelli, P., Cerchione, R., & Ertz, M. (2020). Managing supply chain resilience to pursue business and environmental strategies. Business Strategy and the Environment, 29(3).

Ganesh, A. D., & Kalpana, P. (2022). Future of artificial intelligence and its influence on supply chain risk management–A systematic review. Computers & Industrial Engineering.

Nayak, R., George, M., Haq, I. U., & Pham, H. C. (2022). Sustainability benefits of RFID technology in Vietnamese fashion supply chain. Cleaner Logistics and Supply Chain.

Nunes, L. J. R., Causer, T. P., & Ciolkosz, D. (2020). Biomass for energy: A review on supply chain management models. Renewable and Sustainable Energy Reviews.

Sahoo, S., Kumar, A., Mishra, R., & Tripathi, P. (2022). Strengthening Supply Chain Visibility With Blockchain: A PRISMA-Based Review. IEEE Transactions on Engineering Management.

Tavana, M., Hajipour, V., & Oveisi, S. (2020). IoT-based enterprise resource planning: Challenges, open issues, applications, architecture, and future research directions.

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