HomeProductsSupply Chain Management4 Supply Chain Problems in the Company and It’s Solutions

4 Supply Chain Problems in the Company and It’s Solutions

You will need to be able to move raw materials or products in order to fulfill your role as a provider of goods and services. This activity is a vital component of the supply chain, which plays a significant role in the operational operations that you have to carry out. It is possible to think of the supply chain as a bridge that allows the products and services that you have created to pass from your hands into those of your customers and other suppliers. Collaboration, information distribution, order delivery, and order tracking are all supply chain operations that a company does. These activities vary from one another and are not limited to only the distribution of raw materials or finished goods.

Download: HashMicro Supply Chain Software Pricing Scheme Calculation

However, a company’s supply chain is plagued with inefficiencies the vast majority of the time. Though the cost used is quite a lot, which is about 25% of operational costs. As a result of poor supply chain management, data is missing as it moves from one entity to the next, and it can cause inefficiency. The potential for a significant loss exists if this error continues to crop up on a regular basis. As a result, you are in need of a remedy in order to fix the issue.

Also read: How Can Data Sustainability Help in Supply Chain Risk Management and Improve Damage Control?

Supply Chain in a Company

company supply chain

The planning, managing, and traveling of goods flows are all part of the supply chain activity. Generally speaking, this is an action as a product supplier in the operating activities of your company. Every time you create or make a product, there will be supply chain activities, ranging from the mobilization of raw materials from somewhere to the place of production to the later distribution of a product to consumers. Supply chain activities include planning, input sources such as raw materials from suppliers, transforming raw materials into finished items, distribution, warehousing, payment of goods, and others till product return services.

Because of how important it is to market a supply, it is up to you as the owner of the company to handle this activity along the supply chain effectively. The goal of good supply chain management is to ensure that the chain can operate effectively and reliably, and that distribution is carried out in a manner that puts the right products in the hands of customers and vendors. Effective supply chain management can meet the market’s current demand.

Supply Chain Problems in a Company

company supply chain

Supply chain activity is frequently a problem because of the large variety of activities it includes. The biggest concern is the inefficiency that arises, which will impede the distribution of a product. A company’s supply chain is a vital operational function that affects customer value. Because of this, it is critical that you avoid supply chain issues in your business. Here are some of the most common supply chain problems, so you can be more aware of your business:

1. Inventory mismanagement

It is essential for every business to keep track of its inventory. Due to the enormous amount of commodities traveling through the supply chain, the company often mismanages the inventory. There are times when the recording of entering and outgoing items is inaccurate, resulting in inaccurate financial statements. As a result, warehouses will be overflowing with raw materials and finished goods, or there may be shortages altogether. If it is stored for too long in a warehouse, a product that has an expired period will be damaged.

2. High logistics costs

Inefficiency also results from the miss of information from one entity to another. Because you can’t integrate the data from each entity immediately, stock supply is frequently subject to inaccuracy. In some cases, a lack of inventory causes transportation costs to skyrocket due to the need to restock. In addition, there will be delays in the distribution of commodities and raw materials. As a result of delivery delays, a company’s losses increase.

3. Difficulties in Sales and Operation Planning (SOP)

Inaccurate information might also have a negative impact on sales predictions. When it comes to making decisions, the report of every demand and sale becomes a crucial factor to consider. It will be difficult to estimate consumer demand in accordance with the market and the company’s demands if reports are not accurate and do not reflect field conditions. The planning of labor and transportation preparation as well as operational activities are also connected to this issue.

4. Customer service is decreasing.

After all, customer satisfaction is the main thing. Companies that are able to meet the needs of their customers by delivering the things they need become an added value. Incorrect consumer requests might affect your company’s market value. As a result, inventory management errors that result in damage to the items will have a negative impact on the quality of the product that you need to ship.

Solutions to Solve Supply Chain Problems

company supply chain
source: hashmicro.com

It’s important to find solutions to supply chain concerns before they become large problems with detrimental consequences. One solution that can solve all these problems is to use Software Supply Chain from HashMicro. This software can integrate the information you need during supply chain activities. Here are the benefits of supply chain software for your company:

For more explanation of the benefits of supply chain software, you can read the article below:

Download: HashMicro Supply Chain Software Pricing Scheme Calculation


A supply chain is one of the main operations when you operate a business. This activity includes many things, ranging from shipping goods to consumers, information systems, order tracking, collaborative planning, and others. A good supply chain is a supply chain that it can run professionally and also effectively. Thus, you need supply chain management so that the series of activities remain coordinated and monitored. Problems often occur due to small error errors when supply chain activities are running.

Logistics problems, inventory management, warehousing, and misinformation are just some of the issues that might arise. To avoid future damage to your business, you have to fix this issue as well. One way to do this is to use software to integrate your supply chain system. Your supply chain can benefit from integrated information.

Download: HashMicro Supply Chain Software Pricing Scheme Calculation

Interest in getting savvy tips for improving your business efficiency?

Sarah Nabilah
Sarah Nabilah
Junior content writer at HashMicro


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