The phrase “Supply Chain Management (SCM)” continues to be one of the hot buttons for the manufacturing world. We know that a healthy supply chain process and management will help any manufacturing business run smoothly. Have you figured out why your supply chain management falls short or how to gain maximum efficiency in Supply Chain Management? Here are 4 problems to look out for and how to navigate through them in 2023.
- Inaccurate Forecasting Model
Before you can create your forecasting model, you must create a baseline for production lead times, product pricing, labor, and more. Once you have the baseline, you will want to decide if a quantitative or qualitative forecasting model makes more sense for your operations. Being able to plan for future sudden fluctuations with your forecasting model will alleviate many of your supply chain issues and make better business decisions. - Supplier Issues
The wrong supplier will cost your business both time and money. Make sure you have a supplier relationship management (SRM) process to evaluate all your vendors. If you do not have one in place, you need one. This process will allow you to evaluate current and future vendors and ensure your supplier are not causing any issues.
3. Rising Supply Chain Costs
We live in a post-pandemic world now and rising costs can mean serious damage to your supply chain. You need to be prepared for the 
continued rising costs of labor, fuel, shipping, and more. Build in the most accurate margins so you can raise pricing as your operational costs increase year over year.
4. Delays
Most delays are caused by partners and suppliers and these delays can seriously affect costs and delivery times. If possible, handle it in-house, this way you can minimize suppliers and the opportunity for delays. If you cannot take it in-house, keep your partners and vendors to a minimum as multiple vendor delays will crush your delivery times and costs.
Conclusion
Supply chain issues are not always foreseeable, but your operations can be prepared for the obstacles and issues that arise. Hopefully, these tips will help you and your supply chain operations and if you would like to discuss your ERP requirements, please schedule a time to speak with an ERP expert today.