Also called the supply chain, the logistics chain combines all the procedures and networks essential for the design and delivery of a product from its manufacture to its arrival at the end consumer. However, at present, a certain number of challenges are to be taken up to simplify the management of this chain. Discover the three main ones here.
Saving Money Despite High Freight Costs
One of the significant issues facing supply chain managers is rising freight costs. Freight is the cost of transporting goods. It is becoming increasingly rare to have carriers qualified and capable of carrying out their missions. Adopting an scm solution for this purpose can help simplify things.
Today, there is a need for more carriers, contributing to the slowdown in logistics management activities. In the previous year, freight costs increased significantly for most modes of transport. During this year, however, everything has stayed the same.
On the contrary, prices related to the transport of goods have doubled due to high fuel prices. As an alternative to overcome this, management managers must review the costs related to supplies to obtain the best costs.
Develop Environmental, Social And Governance Plans.
Developing environmental, social and governance strategies is central to business management today. To optimize the results relating to the management of supply chains, managers must take care of this detail.
In reality, the impact of climate change is enormous in all sectors of activity. However, the partnership projects that aim to fight against this scourge are talked about daily. Furthermore, the developed solutions need to be implemented by the companies.
Therefore, one of the biggest challenges is getting companies to adopt environmentally friendly practices. Speaking of logistics and transport, it is essential that:
- empty kilometers are reduced;
- measures are taken to reduce greenhouse gas emissions;
- new strategies are adopted for the manufacture of reusable packaging…
Build Workforce Capacity
Company managers must think about capacity building to maintain a good dynamic within supply chain management teams. New technologies are multiplying and improving day by day.
Regularly updating the workforce is a significant challenge. This requires a specific budget, but this approach must be essential to optimize supply chain management.
So now you know what to do to simplify the management of your company’s supply chain. Consider this so that the right product is in the right place at the right time.
Also Read: The 6S Method – The Lean Tool For Increasing Efficiency And Productivity