6 Major Challenges Faced By Supply Chain Managers

1. Capacity/Resource availability

The game of the Supply is to meet the Demand. Overinvesting or mobilizing resources unnecessary leads to the wastage and underutilization of resources. The owners of Supply Chain businesses face million dollars questions as to whether purchase, rent or hire additional assets or labor to be able to cope with the demand. It is often easier said than done.

2. Talent 

Keeping skilled talents who are willing to commit wholeheartedly to their work and responsibilities and follow through customers’ shipment is another huge challenge that Supply Chain Manager has to face. Especially turnover rates are very high in this sector. The retention of good employees is a critical factor for the supply chain and logistics providers.

3. Complexity

The nature of the Supply Chain business can be very complex, process driven and agile. It is not easy to manage the daily schedule and commitment with either shippers or recipients at the end of the supply chain.

4. Threats/Challenges

There is a tremendous competition whether you are local, regional or global company that is involved in the Supply Chain ecosystem. Dealing and coordinating with different parties for a simple local transportation service, cross-border or continent shipment. Keeping up-to-date documentation, dealing with restrictions, types of permit, insurance coverage, culture and time zones are often the major challenges of a Supply Chain manager.

5. Compliance

Supply Chain Manager needs to have a good understanding of compliance. Shipping restrictions of cargo, embargo, special safety packing and handling requirements are a big challenge. Permits and Shipping documentation needed for presentation to the local ports, transportation regulatory bodies and recipients of the imported country are required to be declared in a proper order.

6. Cost/Purchasing issues

Are complex especially when involved in a multiple currency exchanges such as charges for Airport or Sea Port handling, transshipment, drop shipment or local transportation services and insurance charges etc.