Nowadays, there are many types of supply chain pitfalls since risks and dangers can come from various sources. These include strikes, labor conflicts, natural disasters, inaccurate forecasts, problems with capacity, and so on. That is why supply chain risk management has become the main focus in procurement. Supply chain risk management presents a process of determining, evaluating, and mitigating the risk in the supply chain. To the customers, it is extremely important to hire the right company. If you are looking for logistic professionals with various services you can opt for Four Winds Saudi Arabia. Continue reading to find out what are some of the most common supply chain pitfalls.
Covid 19 pandemic – the biggest supply chain pitfall presently
One thing that can be said for sure is that Covid 19 pandemic has represented one of the biggest dangers to the supply chain recently. Every aspect of the economy was suffering from travel bans, lockdowns, and so on. Also, many companies have been through staff shortages. Some believe that Covid-19 actually just expedited supply chain issues that previously existed. The pandemic definitely accelerated digital transformation in the supply chain. Many logistic companies in the Middle East now use real-time cargo tracking, automated warehousing, and so on. Automation and business intelligence technologies have had an important role too. They optimized the supply chain for different customer demands.
Demand and supply risks
Dealing with suppliers is a tricky business. That is why one of the most common supply chain pitfalls is supply risk. The problem occurs because many suppliers are eager to embark on new projects. However, that eagerness does not always imply that they are in the greatest position to deliver and meet your needs. This is why it is important to pay attention to suppliers who seem to be overwhelmed with new contracts and demands. It is essential not to forget to set expectations from the start and have solutions prepared if providers fail to deliver. Also, having multiple suppliers is a wise choice. If you have a single supplier, anything that goes wrong with it will affect the whole supply chain. Engaging numerous suppliers means avoiding reducing the risk of localized troubles.
Understand the importance of Supply Chain Risk Management Services
As before mentioned, there are numerous supply chain pitfalls, they can fall into different categories, such as:
- Environmental risks
- Political risks
- Ethical risk
- Economic risks
That is why it is important to take advantage of supply chain management services. Supply chain risk management refers to the management of a product’s or service’s full manufacturing flow. From raw materials to delivery of the end product to the customer. It is responsible for urging the company to concentrate on a critical aspect of the problem. It accomplishes so by keeping a close eye on the dangers and disruptions that may occur. What is more, it is developing and planning solutions for potential pitfalls.
Different issues can also occur with logistic networks
People often do not differentiate between supply chains and logistic networks. However, these are two different things. The main difference is in the responsibilities that these two organizations have. Supply chains are in charge of the complete sourcing, processing, and delivery of commodities to the end customer. On the other hand, logistics is responsible for moving and storing goods across supply chain businesses. Logistic companies provide different kinds of services. Such as cold chain services, cargo transportation, packing and crating, and so on. However, there are many issues that can occur and problems these companies are facing.
Different kinds of issues that can happen in freight forwarding
Freight forwarding is known to be one of the most popular services used for international transport. It is used for transferring goods from one point to another using different kinds of carriers. These include ocean freight, air freight, road and rail transportation, and so on. Something that is affecting shipping industries the most is the raised cost of fuel. These industries are looking for a solution to this problem. One such solution is finding an alternative for fuel. However, it is a solution that is not yet applicable but it will hopefully be in the future.
Challenges that cold chain logistics faces
Cold Chain Logistic is a widely popular service that provides different kinds of shipments. It is solely used for products that must be kept at cold temperatures. All this is in order to maintain the quality and safety of the products. This type of service also experiences many problems. One of them is condensation. It usually happens in transportations that include both warm and cool processes. What is more, shipment issues can often occur. Products may get broken or exposed to the wrong temperature, which can lead to damaged products.
Packing and crating
Are you looking for professionals who are both packing, crating, and palletizing materials? You may want to check Industrial Crating & Palletizing service that Four Winds Saudi Arabia logistic company offers. There are some common pitfalls that can happen during the packing process. One of them is wrongly estimating the size and weight of the product. If the mistake happens on the side of the company it can be pricey. Also, another problem that may occur is not knowing what kind of product you are packing. So always describe your product and mention if it is fragile, heavy, moisture sensitive, and so on.
Warehousing – an important part of the supply chain
Warehousing plays a big role in the supply chain. It can reduce the risk of theft. It can also save both money and time, and provide a safe place for products. At the start, it may be tricky to decide what kind of warehouse you will need. However, you can always address the managers and owners of the companies who will give you some professional advice. If you are still looking for something smaller for your family items, you can always rent a storage unit. That way you can rest assured your belongings will be safe. We hope you liked reading our article about common supply chain pitfalls.