Supply Chain management faces several major challenges as far as the whole process is concerned. One such challenge comes in the form of poor supplier relationships. Companies that do not award supplier relationships the courtesy they merit often find themselves at a drawback (Jenkins, 2024). Suppliers form a critical part of the supply chain management process. Poor relationships with the suppliers will lead to delayed supply of critical resources, e.g., raw materials, which are significant in the process. Globalization has become a major challenge to the supply chain management process. Things are changing, especially in the world of technology. Changing from old to new trends is proving a great challenge. The workforce and machines are changing. This change is very costly and time-consuming.
Supply chain visibility is critical as it ensures that the whole process is at hand, end-to-end, and informed decisions are made in case of slight interruptions. Unfortunately, some corporations lack this strategy, leading to major delays in figuring out the problem. In internal and external developments, slowdowns in the supply chain management process can ripple a business and cause infuriating and costly interruptions (Jenkins, 2024). This has been a major challenge to most supply chains. Risk management has proved a challenge to most supply chain management processes. Managing the various risks in the process might prove expensive and difficult. Moreover, sustainability and ethical practices connected to supply chain management prove to be a complex and challenging process for various organizations. Consumers’ ethics and environmental regulations make this course unbearable for most organizations.
Each problem has its solution. First, maintaining great relationships with suppliers ensures that services are on time and as per the quantities required. Suppliers can provide contingency plans to help solve the supply challenges in case of delays. Corporations should absorb new technologies slowly through the chain. This ensures a smooth transition from the old-fashioned supply chain process to the current one influenced by technology and Gen-Z. The management and the head team should be competent enough to comprehend the end-to-end visibility transversely to the supply chain. This ensures that problems are easily solved and delays are prevented in case of a minor or major glitch. In the case of risks and working ethics, special training should be provided to all personnel involved in the chain on proper working ethics and what risks are expected. Also, specialized people to handle such matters should be hired and made available at chain phases.
Today, E-logistics plays a crucial part in supply chain management. E-logistics permits businesses to automate numerous procedures in the supply chain process, including inventory control and management, order dispensation, and cargo tracing. This decreases interruptions and errors linked with manual procedures, augmenting general operational efficacy (Mihmidati, 2023). E- logistics leverages the power of technology to streamline the flow of activities in supply chain management. E-logistics ensures efficient transport management. Technology in transport management has helped various operations, e.g., route optimization and company real-time tracking. It ensures that goods are transported through the most effective trade routes, which reduces delivery time and costs.
E-logistics benefits the customer’s care service in great dimensions. It allows tracking and managing all the orders in real-time. Businesses can guarantee that clients collect their goods on time. Moreover, with the aptitude to provide clients with precise and up-to-date info, businesses can increase the customer experience (Mukherjee, 2023). It offers a great experience to customers, a factor which fosters good relationships. Through customer care services, e-logistics improves operational transparency and builds esteemed trust with clients. One of the greatest advantages of E-logistics in supply chain management is officiating inventory management. Inventory management has always been the hardest and most challenging activity in supply chain management. Fortunately, e-logistics provides profound software that helps in real-time inventory visibility in any significant department. The overall inventory activities are deduced into simple undertakings done over the computer through specified programs.
A great benefit of E-logistics in supply chain management is efficiency in communication. Information sharing and collaboration through effective e-channels ensure information is shared in real-time. Through clear and dependable information-sharing channels, shareholders can be assured that they have up-to-date information and can make well-informed choices (Mukherjee, 2023). Information plays a critical part in supply chain management, and affecting its channels comes with its profound advantages. E-logistics plays a crucial part in regulatory compliance. It helps businesses observe guidelines and legal necessities in specific industries (Mihmidati, 2023). Such necessities include tax requirements and shipping documents. Furthermore, e-logistics helps in risk management and chain management. With the right technologies, it is easy to find where there are potential risks in the whole chain and put across mitigation procedures that will help solve such problems.
One of the current technologies in supply chain management is block technology. Blockchain technology denotes a decentralized digital register that registers organizational transactions safely and transparently. Initially, it was familiarized in 2008 as the mainstay of Bitcoin and has stretched to a comprehensive array of other applications (Günthner, 2023). The blockchain has received numerous backings through technology in various ways. First, technology plays a critical role in blockchain transparency and traceability. Blockchain technology can aid in addressing the challenge of chain visibility by providing a safe and transparent means of tracking goods and services as they pass over the supply chain process. This helps diminish the glitches in chain visibility while refining effectiveness, safety, and shopping familiarity for companies, retailers, wholesalers, and, ultimately, clients (Günthner, 2023). Through technology, all stakeholders in the supply chain can access all decentralized and undisputable ledgers. This ensures that all records are done in real-time, and all parties can scrutinize and check every detail.
Among the greatest features provided by technology in blockchains is safety. The traditional supply chain used centralized databases, which were often hacked and received numerous data breaches. Today, things have changed through blockchain technology. Immutability is among the significant aspects of blockchain technology. Using dispersed registers and cryptographic systems, data kept on a blockchain is everlastingly protected and will stay unaffected over time (Günthner, 2023). In the blockchain, each block comprises a cryptographic hash of the previous block. This makes it hard for any hacker to make any changes in the chain without being noticed. The block is tight and does not allow any external change of registers or block without the proper chain of control.
One of the profound advantages technologies have offered to blockchain is smart contracts and counterfeit prevention. Smart contracts can be executed directly through established codes in blockchain technology. They have eliminated the need for intermediaries and the traditional streamlining process. Additionally, smart contracts have reduced costs and have improved efficiency in managing contracts between various stakeholders. Blockchain technologies provide protected and tamper-proof records with product legitimacy. Each product has unique identifier records at each step of the blockchain. Such identifier ensures that clients can confirm the authenticity of goods by scanning each identifier through a smartphone app, thus decreasing the pervasiveness of counterfeit products. Overall, technology has revolutionized the world of blockchains by incorporating modern infrastructure in the process. Borrowing much from various dimensions of technology has created a structure impenetrable by hackers and fraudsters. Costs have been reduced, and efficiency remains a key benefit to the whole chain. However, more needs to be done, and more stakeholders should be incorporated into the blockchain for more benefits.
Several strategies need to be implemented to improve supply chain management. These strategies will help reduce operational costs, streamline the chain process, and enhance the general performance of the chain. The first proposed strategy is inventory optimization with the right inventory management. Inventory optimization is used to arrive at the correct quantity of inventory that is adequate to meet current and forthcoming demand predicted using demand optimization procedures (Raj, 2023). The greatest inventory practices ally with just-in-time (JIT) inventory programs, which reduce most carry costs and minimize unwanted inventory. Today, technology has made things easier with software tracking all inventory records and optimizing stock levels. Supplier relationship management is an impactful strategy meant to smoothen relationships with suppliers. Suppliers form one of the most crucial factors in the success of a supply chain. It is advisable to cultivate resilient connections with the involved suppliers to negotiate satisfactory positions, guarantee timely deliveries, and cooperate in the process of corporate enhancements. Suppliers make a great team in the stakeholder list in the chin. Their relationships and views on the chain process should be given priority.
Demand forecasting designates a valuable strategy for streamlining and improving the supply chain. Advanced analytics have been at the forefront of ensuring that demand is forecasted effectively. This strategy can be achieved through integrating Demand Sensing, prompt developments to rationalize trend identification, and progressively compelling, craftier, and faster forecasting of client demand (Raj, 2023). Integrating such processes ensures that demand forecasting is at its best at any given time. Greater focus should be placed on this factor as it holds an impactful part of the whole chain. Warehouse optimization ensures that the process is quick and effective. The relevant parties should improve warehouse design and procedures to decrease handling time, increase picking effectiveness, and improve storage space use. Warehouses should be well programmed, arranged, and accessible to ensure ease of dropping and picking goods. Also, the security measures should be top-notch as they form a critical part of the warehouse.
Any supply chain management cannot be affected without modern technology. The company should be ready to invest heavily in modern technology as it is the future of supply chain management. Great improvements can be realized through chain technology such as RFID and Internet of Things sensors. Introducing blockchain to improve perceptibility, traceability, and effectiveness through the chain guarantees a great return on investment. Correspondingly, employees need to be trained and developed with the right skills and knowledge to handle the delicate supply chain structure and its profound operations.
References
Günthner, J. (2023). The Role of Blockchain in Supply Chain Management (SCM). CTG. https://www.paltron.com/insights-en/the-role-of-blockchain-in-supply-chain-management-scm#:~:text=By%20automating%20many%20processes%20within,component%3A%20the%20need%20for%20speed.
Jenkins, A. (2024). 15 Key Supply Chain Challenges to Overcome. Product Marketing Manager. https://www.netsuite.com/portal/resource/articles/erp/supply-chain-challenges.shtml
Mihmidati, N. W. (2023). Characteristics, Types, Barriers and Benefits of E-Logistics. Trans Track. https://blog.transtrack.co/en/logistic/e-logistics/#:~:text=E%2Dlogistics%20allows%20companies%20to,thereby%20increasing%20overall%20operational%20efficiency.
Mukherjee, A. (2023). The implementation of e-logistics in supply chain operations. Supply Chain Management Review. https://www.scmr.com/article/the_implementation_of_e_logistics_in_supply_chain_operations
Raj, A. (2023). 4 Must-know Practices that Increase Supply Chain Efficiency and Resilience. THROUGHPUT. https://throughput.world/blog/supply-chain-efficiency/
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