6 Common Supply Chain Mistakes and How to Avoid Them

In the wake of the pandemic, around 36% of businesses currently experience regular disruptions in supply chain performance.

As things slowly get back on track, these issues are becoming a thing of the past. Is your business ready to cope as supply and demand get back to normal?

Check out these supply chain mistakes that could hold you back as the economy recovers.

1. Reactive Supply Chain Management

Short-sighted risk management policies leave you unable to predict disruptions ahead of time and can lead to inefficiencies in delivery.

Avoid waiting for the worst to happen before you act. Plan for it by implementing proactive risk management, so nothing catches you off guard.

A proactive approach includes numerous just-in-case scenarios to avoid costly quick fixes with future consequences.

2. Underestimating The Need for Security

Physical security regarding product tampering isn’t the only thing to consider when it comes to this aspect.

Cyber threats are a major concern when it comes to supply chain security. Implement failsafe measures to protect your intellectual property, like file transfer protocols and restricted access.

3. Neglecting Data

In the modern world, there are many technologies available to help you keep tabs on supply chain data. It helps you fine-tune your decisions, strategic choices, and front-line operations.

Ultimately, this results in improved experiences for both you and your customers.

4. Supply Chain Mistakes Regarding Service

As a supply chain manager, you need to manage several relationships. You must prioritize top service when it comes to every link in the chain. That means, your suppliers and customers.

A one-size-fits-all approach doesn’t work well in either regard. Ask your supply chain partners how they feel about your service levels and how you can improve.

Their input can help you modify your offering in line with modern needs to avoid future inefficiencies and lost opportunities.

5. A Silo Mentality

Collaboration is key to success in supply chains. Make sure your teams can collaborate with each other and take a customer-centric approach to your business.

If you’ve adopted a silo approach until now, it’s time for a change. Invest in talent development and training to change this mindset and enhance communication between departments.

This will empower your employees to think beyond their own job functions, understand emerging trends, and create solutions for every challenge.

6. Poor Planning

Planning affects every area of the supply chain. Aspects like hiring top talent or staying updated on technology driven market intelligence trends all impact your business in some way.

It’s as simple as taking the time to look at all your processes regularly and bring them in line with leading industry practices. This enables you to move with the times and grow your business in line with modern expectations.

Strive For Excellence in Your Business

Like most things in business, supply chain mistakes are easy to overcome with insight and commitment to excellence. So delve into your management practices today and use these tips to get on track, and stay there.

For more insights into business, bookmark our blog and check back regularly for top tips on how to do things better.