Supply Chain Consulting: 5 Reasons Why a Supply Chain Fails

Not everyone understands why companies need supply chain consulting. Perhaps they are looking to streamline their logistics processes or benchmark their operations against similar industries. Whatever the case, Langham can help improve your supply chain efficiency.

With over 25 years of experience, our supply chain experts have helped clients in various industries such as automotive, life sciences, airport logistics, consumer goods, and electronics. We have become an extension of their team and helped clients assess their current strategies, operations, technology, and execution strategies.
Here are some examples of how a supply chain can fail:
1.    Lack of communication
If you are not getting the right products to the customer at the right time with the right documentation and at the right price, you will obviously not meet customer expectations and risk losing the account. Effective supply chain management is about communication and keeping your customer pro-actively informed of any challenges, delays, or other obstacles.
2.    Long lead times and delayed shipping
It’s all about supply and demand, right? We all know that things can happen along the way to cause longer lead times and delayed shipping from suppliers.  This could be caused by port strikes, delayed manufacturing, or lack of available space on their shipping lane. Regardless of the reason, this type of disruptive event can impair a company’s ability to satisfy their ultimate customer, putting everyone at risk.
3.    Forecasting demand based on historical trends
Not keeping track and comparing metrics in real-time, as well as not using historical data for forecasting sales trends, can wreak havoc on your supply chain. One blip can throw off your demand forecasting for the year. Be sure that you are also monitoring market metrics such as credit ratings, product quality by suppliers, and delivery performance.
4.    Lack of industry experts
Your company can spend an enormous amount of time doing extra work regarding shipment transportation when it’s not the core business. Unless you have knowledgeable industry experts in ocean, air, and rail logistics in-house, you are probably leaving money on the table and jeopardizing service.
5.    Little or no risk management strategy
Just when you think you have achieved supply chain efficiency, a “kink” throws everything off balance. Risk is inevitable. Acts of God, market trends, and demand changes are all reasons that something can go haywire. However, having written scenario plans in place regarding how your company will handle the unexpected makes a world of difference and can help minimize risks and maximize opportunities.
If your company is facing constant pressure from customers and stakeholders, or you need a fresh perspective on supply chain; Langham can help. Click below and fill out our online assessment to get started.

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