Unit 5 Discussion Board
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Kody Ness
SCM610: Logistics/SCM Inventory and Distribution
December 12
th
, 2023
Unit 5: Troubleshooting the Supply Chain
For a supply chain to run efficiently, there need to be plans in place that mitigate problems as they occur. There are many symptoms of supply chain problems that can be detected and alleviated if the proper counter measures are taken within a reasonable timeframe. However, if organizations do not take the necessary preventative steps to remedy the situation, they could see a severe decrease in sales and increase in costs over time. One common symptom of supply chain problems is a lack of raw materials visibility throughout the shipping and production processes. “A high level of visibility enables the company to know when goods will reach their destination, and when they will be available to move on to the next step” (Thomas, 2022). Without knowledge of where their goods are at all times, businesses have to rely on assumptions that may create issues within their supply chain process if the products do not arrive when anticipated. Implementing an enterprise resource planning (ERP) software to help track products in real time is a great way for a company to eliminate the unknown aspect of tracking products and avoid these problems altogether. “ERP software allows you to capture the use of materials and semi-finished goods throughout the production process. All materials related to the finished product can be traced using an ERP system”. (Davies, 2019)
Another common symptom is increasing transportation and freight costs. With fuel prices going up and the number of drivers available being at a premium, companies are having to increase overall transportation costs to deal with these factors. A solution to the increasing cost problem is to improve the route plan. “Employing advanced route optimization software can help identify the most efficient routes, reduce mileage, and minimize fuel consumption” (Sharma, 2023). A business can condense the number of loads being sent out if they optimize the route to include multiple shipments within the route. Finding a method that works consistently will help the company’s bottom line over time.
A lack of visibility of raw materials and increasing transportation and freight costs are two important symptoms that can lead to bigger problems if undetected and unresolved. While these two factors are crucial to the supply chain’s operation, there are many others that could be used as examples as well. Early detection of symptoms and proactively coming up with an appropriate countermeasure are
a business’s best plan of attack when trying to alleviate these problems and keep their supply chain operation running efficiently.
References
Davies, J. (2019). Monitoring Raw Materials Consumption with ERP Software
. Winman. https://www.winman.com/blog/monitoring-raw-materials-consumption-with-erp-software
Sharma, N. (2023). Addressing Transportation and Logistics Costs: Overcoming Supply Chain Challenges
. https://www.linkedin.com/pulse/addressing-transportation-logistics-costs-overcoming-supply-
sharma/
Thomas, J. (2022c, September 2). 7 Critical Supply Chain Challenges and Tips to Overcome Them
. Anvyl. https://anvyl.com/blog/supply-chain-challenges/
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