The complexity of the modern supply chain

The modern supply chain is incredibly complex due to a combination of consumer expectations, more routes to market, and international challenges. Some of the main drivers behind the changing supply chain include:

Increased costs – Rising price of fuel, increasing raw materials costs, higher labor costs, and higher charges for storage, transfer, and management of products.

Multiple channels to markets – eCommerce websites, traditional retailers, third-party marketplaces, and drop shipping retail, to name a few.

Consumer demand – Consumers have more choices than ever and in addition to fair pricing, consumers now expect quality and speed.

Pressure – Suppliers, manufacturers, clients, and customers are located in multiple countries, time zones, and continents – making coordination difficult.

Lack of visibility – Siloed data increases the difficulty of business intelligence and good decision-making.

Other factors such as port congestion, increased storage costs at ports, a chronic shortage of long-haul drivers, and politics further complicate the supply chain.

Supply chain managers can develop contingencies and mitigating action plans to prioritize and eliminate risks and manage issues when they occur. Investments into technology delivering true end-to-end visibility, alerts, and deep analytics critical to maximizing business efficiency can also help in addressing these supply chain issues.

Source: Blume Global http://www.blumeglobal.com