Introduction
Supply-chain management incorporates all coordinated activities facilitating the sale of an item to the public to every person’s satisfaction (Christopher, 2016). The following paper will observe the key challenges facing the areas of distribution, transportation and warehousing as well as inventory management in supply chain management as well as the strategies to solve the challenges.
Challenges
Distribution
Network configuration of the distribution
Taking into account a number of plants that produce products in a bid to serve particular set of retailers in a dispersed geography, it is well to note that the existing warehouse sets are inappropriate and the management intends to redesign the network of distribution (Christopher, 2016). It is thus difficult to select new warehouses when the management is faced with such an obstacle.
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Increasing demand for commodities
It becomes very difficult to get into nations and other geographies considering the strict laws that impeded entry. In the face of such, a growing demand in the world today proves a vital challenge as producers cannot be able to produce enough quantities to meet the demand.
Transportation
Evolving demand by the consumers is a vital challenge in the transportation sector of the supply chain management as transport can only meet but the produced amount.
Increased compliance complexities are other emerging issues that facilitate the impedance of the transport sector in the supply chain management. The numerous compliance limitations instituted by various nations and authorities limit transport movement.
Warehousing
Lack of modern technology. Many warehouses lack updated technology to keep their commodities safe for a long period of time.
Inaccessibility of the warehouses in terms of their locations is a key challenge in the supply chain management as many companies fail to have warehouses in all the nations in which they operate (Christopher, 2016). The situation thus leads to insufficiency of commodity in places of high demand.
Inventory
Inventory control is difficult considering the customer demands changes with time and the retailer can only use data from previous occurences to predict a demand.
Lack of technology for safe keeping is also a challenge that sees many lose facts on the sales. The lack of proper oversight on the stock can cause aspects of waste in the distribution centre that moderates operations and expands costs (Christopher, 2016). Without satisfactory knowledge into area, It takes more time to discover the dispatch things, which proceed to moderate the procedure of build-up and reinforces entryway planning.
Solution Strategies
Distribution
Overseeing regularity sought after requires convenient and precise data about assembling, retailing and the business (Tayur et al., 2012). Data holes between the stockroom and other pertinent elements or as far as possible the capacity of the wholesaler to screen and react to changes popular viably. It is vital for distribution centres to utilize auspicious and exact data in arranging and determining request and also in giving production network perceivability.
Inventory
Automated systems offer constant, precise data about stock levels and synthesis. The innovation utilized in overseeing stock in a stockroom is basic to progress on the grounds that the estimation of the computerized framework is similarly tantamount to the nature of the framework itself (Seuring, 2008). A low-quality inventory holds a portion of the dangers related with incorrect stock.
Transportation
Increasing the relationship between suppliers and customers goes a mile in securing the trust needed to buy time when commodities are insufficient or cannot meet the demand (Seuring, 2008).
Warehousing
Increased sorting and rearrangement does a good job in ensuring the warehouse are properly capable and can handle commodities (Seuring, 2008). Also the use of modern technologies will facilitate the efficiency of the storage areas.
Delocalisation of the warehouses is a way of dealing with the issue of inaccessibility as it ensures warehouses are reachable in every country that the businesses operate.
References
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of cleaner production, 16(15), 1699-1710.
Tayur, S., Ganeshan, R., & Magazine, M. (Eds.). (2012). Quantitative models for supply chain management (Vol. 17). Springer Science & Business Media.
