SCM215 Unit 2 Discussion
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SCM215 Unit 2 Discussion
Logistical and business-related issues impacting supply chains
Two main operational challenges regarding logistics and business operations for supply chains are transport disruption as well as supply chain visibility (Manners & Lyon, 2022). Transportation interruptions brought about by natural disasters, for example, or workers' strikes, can end with delays, increased costs, and damages to the products that may affect the entire supply chain. On the one hand, the insufficient visibility and exchange of information between partners imply inefficiencies in the working process, failure to forecast demand properly, and supply-side difficulties for the collaborating parties. These issues give evidence of what a strong contingency plan could be to manage the disruptions and also what technologies should be invested in to improve the supply chain visibility and collaboration among the companies of the network that will result in better operations and better reaction to market changes (Manners & Lyon, 2022).
Importance of the critical issues impacting the supply chain process
Transportation interruptions are a key element of the supply chain because they directly influence the end-to-end movement of goods, causing production interruptions, adjusting inventory levels, and giving customers lower levels of satisfaction (Rolf et al, 2023). Transport delay or damage incurred during the transport reduces the credibility and reputation of the store adversely which costs organizations considerably. Likewise, being able to monitor the supply chain is important to optimize the operations; it enables the organization to make accurate demand forecasting, inventory management, and coordination between all the collaborative partners (Rolf et al, 2023). An unsuccessful performance of visibility in the market may leave the
companies to miss out on changes in demand and supply, resulting in overall inefficiencies and lost opportunities (Rolf et al, 2023).
References
Manners-Bell, J., & Lyon, K. (2022).
Logistics and Supply Chain Innovation: A Practical Guide to Disruptive Technologies and New Business Models
. Kogan Page Publishers.
Rolf, B., Jackson, I., Müller, M., Lang, S., Reggelin, T., & Ivanov, D. (2023). A review on reinforcement learning algorithms and applications in supply chain management.
International Journal of Production Research
,
61
(20), 7151-7179.
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