Did you know that 28% of the global supply chain underwent shortages and other supply chain issues due to COVID?
A supply chain disruption can be a significant inconvenience for a business. Not only can it cause a loss in revenue, but it can also lead to increased expenses and decreased productivity.
In this blog post, we will discuss some of the common causes of supply chain problems and how you can prevent them from happening. Let’s get started!
Lack of Visibility
The lack of visibility into the supply chain is a common cause of disruptions. The global supply chain is a complex system with many moving parts, and it can be difficult to track what is happening at all levels.
This lack of visibility can lead to problems such as delayed shipments, missing inventory, and quality issues.
Visibility is also essential to effective supply chain management. Without it, businesses are blind to potential problems and are unable to take corrective action. This lack of visibility can also damage relationships with customers.
There are a number of ways to improve visibility into the supply chain.
Businesses can invest in technology such as tracking systems and Enterprise Resource Planning (ERP) systems. They can also put processes and procedures in place to improve communication and collaboration between different parts of the organization.
By taking steps to improve visibility, businesses can avoid disruptions and ensure that the supply chain runs smoothly.
Shortage of Shipping Containers
Supply chain disruptions can have a cascading effect, causing delays up and down the line. For example, one of the most common causes of supply chain disruptions is a shortage of shipping containers.
This can happen for several reasons, including:
- An increase in demand
- A disruption in the manufacturing process
- A natural disaster
A shortage of shipping containers can cause delays in the transportation of goods, which can lead to shortages of inventory at retailers.
In extreme cases, it can even lead to the rationing of goods. A shortage of shipping containers is, therefore, a serious issue that can have a major impact on the smooth operation of the supply chain.
You also need to make sure that there will be no shipping issues within your company.
So, you will need to get the best drayage transportation services to help you out in shipping your goods in time to prevent further supply chain issues.
One of the most common causes of supply chain disruptions is manufacturing issues. This can include anything from equipment failure to quality control problems.
Manufacturing issues are often caused by a combination of factors. This makes it difficult to pinpoint the exact source of the problem.
Supply chain disruptions can ripple effect. As a result, it can cause production delays and shortages of finished goods.
Manufacturing issues can even lead to factory closures. To avoid these disruptions, manufacturers must implement robust quality control measures and have contingency plans to deal with unexpected production problems.
By taking these precautions, manufacturers can minimize the impact of manufacturing issues on the supply chain.
Be Aware of These Supply Chain Disruptions Today
Although preventing all possible supply chain disruptions is impossible, being aware of the most common causes can help you plan ahead and mitigate the risks.
By implementing a robust supply chain management plan, businesses can protect themselves from the devastating effects of supply chain disruptions.
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