Key Challenges of Supply Chain and Logistics Companies and How to Overcome Them

Supply chain and logistics companies today have been facing constant challenges in today’s environment in their path of growth. Whether be it the distributors, manufacturers, or the third-party logistics players, everybody is facing challenges with respect to developing an agile and lean supply chain that works efficiently and effectively. What needs to be remembered in this aspect is that this supply chain management should also at the same time cater to the rapidly increasing customer expectations and even manages costs effectively. To ensure setting the best foundation for effectively overcoming these challenges, developing an effective and efficient supply chain intelligence infrastructure ranks a priority.

5 Key Challenges Faced By the Companies and How to Overcome Them

To completely and effectively realize the benefits and make the most of the technology and process breakthroughs, logistics and supply chain companies need to uniformly align the measurement strategies with respect to logistics performance. The catch to overcoming the challenges at best rests with automating the process. Here’s a look at the challenges that are usually faced by the companies usually –

  • Maintaining Accuracy of the Inventory – Having complete visibility of the inventory is not always possible for the manufacturers. Most often the problem that is faced by them rests with running out of stock at crucial moments or carrying excessive stock. This largely hinders cash flow while adding up to the costs of warehouse extra materials. The problem with inventory storage if not battled on time can lead to unsatisfied and unhappy customers.
  • Understanding Warehouse Layout or Space Utilization – The catch does not rest with just being aware of how much space you have in your warehouse. It’s all about optimizing the space right to avoid the influx of unnecessary labor. Consider keeping the high-selling inventory and fast-moving inventory close to the facility. This would ensure that the transporters need not travel a distance to reach the farthest point in the warehouse for loading the goods.
  • Determining the Location of the Inventory – Lack of oversight with respect to inventory can lead to the development of inefficiencies. This when creeps into the warehouse significantly slows operations and adds up to the costs. Experts have pointed out that lack of proper insight into the locations significantly increases the time that the pickers might take to find the items for shipping. This, on the other hand, slows the load process and also creates a back-up in doc-door scheduling and labor allocation.
  • Ensure Integrating Optimization – Warehouses managing or performing with manual processes never include a common route for picking up items or products for shipment. This further adds unnecessary time to the entire process. According to experts, the solution to this challenge can be easily obtained through the implementation of system-directed putaway/pick that helps automating the entire process. This would further bring down wear and tear on the workforce and the equipment.
  • Avoid Redundant Processes – This can be best ensured through the implementation of barcode technology. Wondering how does this help? It helps getting rid of problems like documentation or pick ticket being passed through multiple hands. For example; you no longer need to bother about documents passing through a picker, stager, checker, and a loader.

These are some of the common challenges that are usually faced by logistics and supply chain companies. However, companies battling the odds by adopting for automation in the process certainly ensure better growth without fail.