Tag: supply chain management challenges

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Top 5 Supply Chain Management Challenges Facing Companies in the Food and Beverage Industry

The food and beverage industry faces a lengthy list of unique challenges in terms of logistics and supply chain management, right from volatile commodity pricing and inventory management to quality and safety requirements combined with frequent new product introductions, high demand uncertainty, complex manufacturing constraints, and perishability. The need for inventory optimization in the food and beverage industry is growing due to the increase in customer demand, expanding product portfolios, and lengthening supply chains.

Inefficient inventory management in the food and beverage industry results in spoilage of products, resulting in bad supply chain management. This results in poor decision making at all the levels of the supply chain.  This leads to a vicious cycle, ultimately reducing sales, profit margins, and customer loyalty.

At SpendEdge, we understand the impact of better warehouse management on supply chain management. And to help companies strive in the competitive food and beverage industry, our experts have highlighted some of the major challenges that they must be aware of and prepare themselves for accordingly.  

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3 Best Practices for Supply Chain Risk Management Planning

When it comes to supply chain risk management planning, a risk can be defined as a broad spectrum of events, from counterfeit products, natural disasters, supplier delay, to theft, part shortages, production interruptions, and even cybersecurity. Every business has a different array of potential risks depending on its verticals, and each of its product has a different risk portfolio depending on its components. The product lifecycle is influenced by an incredible number of variables. Therefore, a comprehensive supply chain risk management planning is required, and many companies, today, are embarking on the journey to reduce the overall negative impact on the bottom line and effectively deal with unexpected hiccups. For companies that don’t have supply chain risk management plans, their primary objective should be to discover the largest risks and figure out strategies to deal with them. In this article, we have discussed some next-level best practices that can push supply chain risk management plans to another level of value and consistency.

Best Practices for Supply Chain Risk Management

Best Practice #1: Site checks must be performed

There are certain kinds of issues in supply chain risk management that can only be discovered with routine, in-depth personal visits, and an understanding of the culture where production occurs. The routine site visits are one of the most impactful methods of not only identifying supply chain risk but also help in developing contingency plans. Undoubtedly, this can be expensive and time-consuming in the case of a supply chain that reaches overseas, but the outcome can be enormous. This is one of the best practices which ensures that if there are any concerns with unsafe working conditions or quality, the companies can immediately take the necessary steps to revise their risk quantification.

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Best Practice #2: Don’t neglect cyber threats

Risks are not always physical but virtual too. There are many stakeholders when it comes to supply chain risk management who assume that supply chain risks come from physical challenges, such as delay in production and shortages, but this is short-sighted. Every supply chain is built on top of IT, whether it is a bill of materials shared between the company and the third-party suppliers, or CAD designs comprising proprietary, patented designs. Threquest proposalerefore, for a better supply chain risk management, companies need to roll cybersecurity risk into the overall supply chain roadmap and prioritize them higher than several physical risks.

Best Practice #3: Ease out supply chain risk with insurance

Insurance companies specialize in risk quantification and working with someone can help procurement companies in their process of putting together proper contingency plans. Some insurance policies cover the own production of the company, such as a custom-built and expensive piece of equipment that would cost millions and take weeks to replace. Therefore, this best practice in supply chain risk management can enable the company to recoup many of the costs involved in case of a critical failure. There are also other insurance policies that cover issues upstream, such as delay in the supply of parts from overseas suppliers. In either case, insurance can never make up for damage to a brand, but it can help lessen the sting of a major supply chain disruption, both in-house and the other side of the globe.


Want to know more about best practices for building supply chain risk management plans? Contact us now!

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3 Key Digital Supply Chain Challenges That Need to be Tackled in 2019

Long before the era of digitization that we commonly associate with Industry 4.0, supply chains have served as the lifeblood of industrial organizations. However, in recent decades, supply chains have grown increasingly complex due to the advent of advanced digital technologies. These technologies have helped the supply chain to evolve into something more interconnected, less linear, and more responsive to change. This new networked chain of supply is known as a digital supply chain. It has reshaped the way stakeholders transact and communicate with each other. The emergence of the digital supply chain has made the supply network a strategically critical component of the organization and has helped in making it more flexible and responsive. However, there are several challenges in the area of digital supply chain analytics, visibility, and planning that are essential to realize its true potential when it comes to driving innovation.

Digital Supply Chain Challenges

Challenge #1: Managing the digital supply chain

A digital supply chain includes applications, network, and data connections. It connects customers to the tech solutions that underpin e-commerce, unlike production supply chain that moves physical resources and raw materials among manufacturers, suppliers, and retailers. Therefore, with business transactions moving to the cloud, managing the digital supply chain becomes crucial for increasing revenues, control costs, and protect the brand.

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Challenge #2: Optimizing the integrated planning process

For any digital supply chain network, optimizing the integrated planning process is very challenging as most companies don’t leverage all the information to achieve the best planning result possible. Additionally, it has been observed that statistical forecast data or determined planning is manually overwritten by planners. So, for a digital supply chain to derive the best outcome, the organizational setup, arequest proposaldvanced level of integrated process optimization, processes, governance, and incentives need to be aligned between and within partners in the supply chain.

Challenge #3: Building a balanced roadmap

Shifting to a new market strategy with a digital supply chain network to accelerate growth can wreak havoc on the company’s highly customized supply chain. Therefore, it becomes crucial for the management to make sure that the new supply chain balances their competing demands and allows easy integration of new business models. A balanced roadmap can help in generating quick wins and provide flexibility to accommodate evolving technologies and future capabilities.


Is your organization’s supply chain ready to go digital or are you facing any of these digital supply chain challenges? Contact us now!

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4 Most Common Challenges in Procurement in Healthcare

Globally, the quality of health care services has improved a lot over the past few years. Today, the researchers have found solutions for many diseases that had no cure or could not be treated earlier. Such improvements in health care quality are primarily because of the immense growth in healthcare procurement processes that include segments like clinical research and medical equipment procurement. Despite the strong growth of the healthcare services industry, the suppliers in this sector are facing numerous procurement challenges. In this article, we have listed down some of those challenges that you must know if you are a healthcare organization. But before exploring those challenges, let’s understand a bit about procurement.Contact US

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7 Benefits of Short Food Industry Supply Chains

Short food supply chains are characterized by few intermediaries and shorter physical distances between producers and consumers. These supply chains are good for increasing profits of farmers and other producers, revitalize rural economies, and give consumers access to fresh, fairly-priced foods. Short food supply chains are garnishing more attention as consumers are concerned about the spread of foodborne diseases as well as issues such as the horse meat being identified in packaged foods in Europe. In this article, we have talked about some of the greatest benefits that the use of short food industry supply chains offers:

Benefits of Short Food Industry Supply Chainsrequest proposal

#1. Improved negotiating positions for farmers

These short food industry supply chains offer farmers greater power during negotiations, especially during those with retailers. Using short food industry supply chains that do not consist of multiple processors, traders, and wholesalers give farmers and small producers more direct access to the market.

#2. Increased communication between producer and consumer

Short supply chains can lead to job creation, especially in rural areas, which also helps to increase the farmer or producer’s reputation and the trust that consumers place in them. Operating locally allows producers and consumers to have more direct communication and interaction, which also helps to build loyalty and trust.

#3. Reduced transportation costs

Short supply chains typically serve a local area, reducing the energy costs, transportation costs, and CO2 emissions used to transport goods in longer supply chains. Because of this, these supply chains have a greater potential to be made sustainable and to remain sustainable over the long term.

#4. Increased transparency 

It’s easier to make short food industry supply chains with few or no intermediaries transparent than it is longer and more complex ones. Producers are also able to offer more detailed information about their business and practices, helping to build their reputation, increase customer retention, and build loyalty. It also makes it easier to make procurement decisions.

Continue reading to know more about the benefits of short food industry supply chains or request a free demo below


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