A supply chain is an integral cog to
the machine of business. When problems arise in the supply chain, this can hamper
the success of the business and impact its reputation negatively. For a small
business, this has the possibility to make or break its longevity.
Business owners can quickly become
disheartened and overwhelmed from the problems that might affect their supply
chain. In some cases, it might seem that there’s very little they can do to
control the issue. However, there are ways to overcome these issues.
In this post, you will learn about
three of the main supply chain issues your business might face and how you can
resolve them.
Higher Consumer Expectations
Consumer expectations have risen massively
in terms of the cost, choice, and speed of deliveries. This can be linked to the
big, worldwide competitors to independent businesses like Amazon Prime, which
offers next-day delivery, and same-day grocery delivery services. Supply chains
now play a pivotal role in offering superior customer service and boosting
consumer loyalty.
With customers expecting their orders
to be delivered sooner, businesses need to optimize their supply chain
operations. Plus, these expectations are thought to continue growing, which
means improvements must be made continuously. Businesses who do not change
their strategy will see a negative impact on customer retention.
For business to keep up with
heightening consumer expectations, it’s important to evaluate what customers
view as requirements when ordering online. This often includes the offered
delivery options, order accuracy, and on-time shipments, which can take its
toll on the business’ resources and transportation.
Services offered by Ryder third-party logistics can help businesses cope with this increased demand.
This service has the time and resources to perfect your supply chain, and it
boasts 100% order accuracy and 99% on-time delivery, which would meet the needs
of your consumers. The strategy Ryder creates will be customized to your company
to ensure the solution assists the operation, data, and goals of the business.
Labor Shortages
Labor shortages affect many areas of
business, from ports to factories. Although it was worse during the Covid-19
pandemic, workforce participation continues to fall below the levels calculated
pre-pandemic, as shown by this article. When this affects the supply chain, there will be unfilled roles
in all stages. Not only is there a lack of workers, there is also fewer skills;
this means there is a shortage of qualified staff to undertake specific tasks.
As previously stated, labor shortages
can affect all areas of the business, including customer service,
transportation, and warehouse operations. This can result in delayed shipments,
which means customer satisfaction can take a hit. Then, when the customers try
to complain, they are faced with an extended wait to talk to a staff member. It
seems like a never-ending cycle.
Thankfully, there are steps that
businesses can take to ease the effects of labor shortages in the supply chain.
The first factor to look at is diversifying the skills of your current
workforce. You can do this by investing in training programs that will develop employee skills, ensuring staff can adapt and will be well-trained if the
need arises. Another way to mitigate issues relating to labor shortages is to
utilize supply chain technology efficiently, which could also be provided by a
third-party logistics service.
Cybersecurity Threats
With cybercrime on the rise, supply
chains are more at risk of being targeted than ever before. Supply chains are a
necessity for businesses, particularly in the ecommerce industry, connecting
all areas of the process – manufacturers, suppliers, distributors, and
retailers. This increases the risk of being targeted as there are several
points of entry. These risks can include data breaches, disruptions, phishing,
ransomware attacks, and third-party vulnerabilities.
There are multiple ways that you can
protect your supply chain from cyber security threats. You must be proactive when doing this and use a multi-layered
approach to ensure the chain is secure. The first step is to thoroughly assess
the cybersecurity practices when using a new vendor. After this, you must
monitor the supply chain consistently to detect possible threats and respond to
them effectively. This will be in addition to carrying out frequent audits on
internal systems and the systems of your partners.
Knowing how to keep your supply chain
functioning correctly is an essential part of business, so you must be aware of
the types of issues you could face. Three of the most frequent issues are
rising consumer expectations, labor shortages, and cybersecurity risks. By
understanding these issues, you can also learn how to resolve them efficiently.
