5 Supply Chain Management Challenges to Watch Out

5 Supply Chain Management Challenges to Watch Out

Supply chain management is a crucial part of every retail and eCommerce business. You can neither leave the supply chain to work on its own nor can you afford to ignore it for days. That’s why companies focus on supply chain management to gain a competitive edge, performance efficiency and develop a good customer service reputation.

However, unfortunately, despite all your efforts to keep product development, material sourcing, production, and logistics on track, some external hurdles try to detract all supply chain management activities. Now the hundred dollars question is: how can you avoid these hurdles and keep your business running smoothly? The good thing is that technological advancement has made it easier to handle these obstacles, but you can only cater to them if you know what these issues are.

In this article, let’s decode the main challenges businesses face in supply chain management:

1. On-Point Customer Service

In today’s dynamic customer environment, you can’t expect your client to return if you provide poor customer service. Worn-out goods, delayed parcels, and unsatisfactory responses to customers can pile up and become a catalyst of a massive blow to your reputation and business.

Besides that, it isn’t easy to understand different customers’ personas and requirements. So, offering high-quality customer service and fulfilling all customers’ demands have always been challenging. However, business intelligence and CRM software are changing the landscape in businesses’ favour. For example, a digital supply chain control tower facilitates efficient operation and better customer service management so that you can easily cater to this challenge.

2. Logistics Management Handling

Logistics means the activity of transporting goods to customers. With the boom of eCommerce and online businesses, logistics has become the center point of all retail companies. But unfortunately, it is not easier to manage logistics because it brings along issues of employee hiring and management, increased costs, and hurdles in case of any social, economic, or political turmoil. This is a significant problem when you are dealing with international transportation.

In this scenario, hiring a logistics management company can become a turning point. From picking up the parcel to delivering it on time, they handle the whole headache and responsibility.

3. Finding Good Suppliers

Suppliers are the starting point of any supply chain. No matter how good a production unit you have, if the supplier doesn’t give you quality material, nothing will work. Besides this challenge, getting into a tussle with suppliers is another common issue companies face.

Things can be changed in this capacity if you work on two things: find the best possible supplier and build a strong relationship with him so that you don’t end up at a dead end with the supplier when you just got a bulk order a day ago.

4. Product Cost

A costing issue from the supplier’s end can put you in considerable trouble. However, sometimes, the increase in cost is not your or the supplier’s fault. Many national and international factors trigger the fluctuation of fees and expenses, like increased oil prices, scarcity of a specific raw material, change in diplomatic relationships, global catastrophe, etc. This is something that impacts supply chain business drastically. Moreover, you cannot do anything about it, even with software. That’s where the need for a robust strategy and proactive approach comes in.

Instead of waiting for your inventory to end before placing an order for material, stay one step ahead. It would help if you had a robust supply chain management strategy after analyzing all possible scenarios so that you can continue operations at an affordable price without suffering loss.

5. Changing Industry Dynamics

Let’s admit that technological advancement has changed industry dynamics, including processes and operations. Companies that are early adopters of technology are now enjoying benefits in the form of a competitive edge.

But laggers, mainly including small companies and startups, are facing challenges to grow without technology adoption. The reason is that a few are confused, and others are trapped in myths. This delay is increasing challenges for their supply chain management with every instant. So, instead of getting confused, consult a supply chain management software consultant and start your journey to success today.


Doing business is not easy, and nobody ever said it would be easier. Running a business in this competitive environment is hard and becomes more complex due to unforeseen challenges. However, where there is a will, there is a way. So, the risk assessment and management committee should proactively manage these issues to keep the business running smoothly.

If your company is facing any of these challenges, try the above-given tips, and get the business back on the track.



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