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Managing a business supply chain is often an extensive task. It involves freight forwarding, shipping, warehousing, inventory management, and delivery. This process can prove tricky to maneuver, especially for small online retailers.
However, by first understanding the potential barriers in global supply chain management, businesses can learn to stay ahead in meeting users' demands. Later in this post, we also discuss helpful steps to navigate through these challenges with fewer errors.
Efficient supply chain management is crucial for business growth in today's global market. Yet, there are risks involved in doing business across foreign borders, like shipping from UAE to Kazakhstan. These include:
Today's buyers are a significant force behind innovation in service delivery. Due to high demands, companies now prioritize rapid delivery (24-48 hours), returns management, and value-added services, like product installation and repair.
Trading across foreign borders often requires corporations to contact local suppliers or service providers. Yet, transacting in foreign exchange, through new languages, or adapting to new customs can hinder effective communication.
Further, moving goods and services across international borders can be challenging and time-consuming. Non-compliance with customs regulations can also cause delays at the point of entry.
The COVID-19 pandemic was an eye-opener to the devastating effects of a prominent event on the global supply chain. Unexpected crises, like the blockage of the noteworthy Suez Canal, can lead to delays and extended downtimes in international trade activities.
The rapid advancement of technology and the increasing adoption of digital solutions have added a new layer of complexity to today's supply chain. Automation, artificial intelligence, Internet of Things (IoT), and other digital technologies have revolutionized various aspects of supply chain management, including inventory management, demand forecasting, logistics tracking, and communication with suppliers and customers.
While these technologies offer numerous benefits such as improved efficiency, enhanced visibility, and real-time data analysis, their implementation and integration into existing supply chain systems can be challenging. Companies need to invest in infrastructure, train their workforce, and ensure data security and privacy to fully leverage the advantages of these technological advancements. Additionally, managing multiple digital platforms and ensuring interoperability between different systems can create complexities and require continuous monitoring and updates.
Global trade can be challenging to navigate. Still, by properly planning, implementing, monitoring, and adapting, companies can grow exponentially and explore new markets. The following are helpful strategies to use in managing supply chain activities.
One vital resource to manage the dynamic supply chain landscape is technology. For instance, investing in Supply Chain Management Software.
This digital tool can help e-commerce providers to manage activities across order processing, shipping, warehousing, and fulfillment.
Recently, we have artificial intelligence (AI), machine learning, the Internet of Things (IoT), and satellite trackers. These tools help to pick optimal transport routes, manage inventory, deliver orders, and implement data-driven decisions.
Nowadays, automation across various supply chain levels is vital for business growth. For example, AI can help with demand forecasting and predicting market trends.
Also, implementing automatic online payment can lead to faster processing of customers' orders. Automated warehouses using robots also speed up order fulfillment and delivery processes.
It's equally important to keep watch on outgoing and existing business inventory. This step requires time and resources to observe and analyze supply chain data on-the-go. Or your business can invest in software to streamline the processes.
Nowadays, it’s increasingly vital for businesses to focus on handling certain operations in-house. Also called core competencies, these areas of operations are essential to the company's success, such as creating goods, services, and ideas.
Then, the company can outsource other activities like shipping, warehousing, and delivery to a third-party logistics (3PL) provider. A 3PL is an external company with the resources to assist businesses with order fulfillment in the supply chain. As a result, companies can increase efficiency and benefit from value-added services.
The global supply chain seems complex without the proper knowledge and tools. So, even though companies try to save costs by handling all their processes in-house, various factors can contribute to business failure. Some examples are cultural barriers, and foreign policies, among others.
Despite these complexities, a 3PL helps online retailers to operate efficiently. Working with a 3PL provider ensures the company has the necessary facilities, technology, and knowledge to expand the supply chain.