Supply chain issues: how to make sense of today's challenges and fix them

Introduction

The modern supply chain is complex, hampered by globalisation, rapid technological change, economic pressure, shifting customer expectations and global tensions. For medium to large enterprises in manufacturing, warehouse management, retail and distribution, especially those using SAP or about to migrate to S/4HANA, these problems are showing up as poor visibility, supply demand imbalances, inventory and supplier instability, logistics delays, rising costs, and missed service promises.

What used to work just isn't any more. In this article, we're going to take a closer look at the key supply chain issues that are causing problems for operations today and how organisations can address them with better tech, tighter system integration and more robust processes.

What happens when supply chain issues are ignored?

With global tensions and climate change putting even more pressure on supply chains:

• Delays get longer 

• Rising costs 

• Inventory becomes unreliable

By spotting the problems and reacting in the right way, you can build stronger, more resilient and future proof supply chains.

What do supply chain current issues really mean?

Supply chain current issues are the modern challenges that are causing supply chain performance problems right now and if you don't tackle them, you're just making yourself more vulnerable to supply chain disruptions and weakening your whole supply chain management operation. These problems are being driven by:

• The sheer complexity of global supply chains

• The pace of technological change

• Pressure on costs 

• Changing customer expectations

• The concentration of risk across interconnected networks

Shipping delays can reduce product availability and drive up retail prices.

These are the problems that are disrupting supply chains right now and need to be addressed.

The supply chain problems organisations face today

Modern supply chains are facing big problems that are causing problems for supply chain management, disrupting operations and increasing supply chain risk.

There's not enough real time visibility

• You can't see what's going on with your inventory and shipments, which is messing with day to day supply chain operations and highlighting the need for visibility across complex supply chains

• Trying to track goods across multiple locations is proving impossible

Supply and demand imbalance problem

• There are huge fluctuations in demand and not enough visibility into inventory and shipments

• You can't even get demand forecasting right, mainly because visibility is lacking in complex supply chains, especially when you're trying to get accurate data from external partners

Inventory problem

• You're stuck with too much stock or not enough stock, often because of delays in getting the raw materials you need

• You're struggling with weak demand forecasting

• You've got poor inventory accuracy

Supplier disruptions

• Suppliers are delaying or failing to deliver

• You're relying too heavily on a single supplier

• Shortages of raw materials are a growing problem

Transport and logistics delays

• There's congestion in the shipping and delivery networks

• Inefficient routing and planning is making delays worse

Costs keep on rising

• Global sea freight costs are rising and transiting goods across transport networks is becoming more expensive and adds to margin pressure

• Paying more for suppliers and materials, plus there's the added cost of regulation and compliance and efforts to cut carbon emissions are also adding to operating costs
  

• These problems are impacting efficiency, cost and customer satisfaction.

Supply chain current issues in real life

For example, a business is struggling to meet customer demand, inventory is inaccurate, and suppliers are delivering late. Resulting in:

• Missed sales opportunities

• Delayed deliveries and other operational pains

• Increased operational pressure

Another example of this problem:

• Logistics costs increase due to regulatory pressures

• Carbon emissions are increasingly expensive
  

This all adds up to:

• Reduced profitability

• Slower delivery performance

• High operational costs 

For business leaders trying to navigate supply chain challenges, teams often turn to workflow visibility and automation to streamline things and make life easier.

Root causes of current supply chain issues

Getting to the bottom of this is key to actually solving the problem.

If your warehouse systems are old and outdated and your workers can't get to real time data, then picking slows down, mistakes increase and labour costs  increase. It all adds up to a situation where you need to streamline things before these issues start affecting service levels.

Global supply chain complexity

• Multiple suppliers and regions

• Tougher to manage and coordinate across international supply chains

Understanding the cause is key to actually solving the problem and improving chain resilience.

Disconnected systems

• No integration between systems

• Data is stuck across departments.

• Manual processes
  

Still relying on spreadsheets or manual updates which can make dependencies across production processes hard to see.

Poor data quality

• Working with inaccurate or outdated information. Especially when we rely on spreadsheets or manual updates which slows down production processes and creates weak spots in processing stages

External disruptions

• Political, economic or environmental factors like trade wars and broader geopolitical dynamics 

• Market volatility, tariff volatility and extreme weather events make it harder to scenario plan when the information you're working with is inaccurate or outdated

These causes really highlight the need to do something about:

• Getting better systems

• Getting stronger integration

• Getting more accurate data

The impact of supply chain issues

If we don't get a handle on this, organisations end up with a range of problems including:

• Operational inefficiencies

• Slower processes

• More work by hand

• Financial impact

• Higher costs

• Reduced margins

• Deliveries are delayed or wrong

Supply chain performance just takes a hit without effective management.

How to tackle supply chain current issues

Organisations can take practical steps to overcome these challenges by planning better, getting better visibility and managing risk a bit more effectively.

Some key actions often include:

• Improving demand forecasting and inventory visibility

• Diversifying suppliers and transport options

• Investing in automation and digital tools

• Building a more resilient supply chain that can adapt to disruption more easily

• Addressing labour and talent shortages that slow things down and constrain capacity

• Improve visibility

• Get real time tracking systems in place

• Use analytics tools

Enhance demand planning

• Use data driven forecasting

• Align supply with demand

Optimise inventory management

• Introduce inventory control systems

• Use automated replenishment

Strengthen supplier strategy

• Diversify suppliers

• Monitor supplier performance

Improve logistics

• Use transportation management systems

• Optimise routes and scheduling

Integrate systems

• Connect ERP, warehouse and logistics platforms

By taking these actions, we get:

• Improved efficiency

• Reduced risk

• Better performance

The role of technology in solving supply chain issues

Modern supply chains really rely on tech to address current challenges.

ERP systems

• Centralise operations and data

Warehouse management systems

• Improve inventory accuracy

Transportation systems

• Optimise logistics

Analytics platforms

• Provide real time insights

Automation tools

• Reduce manual work

This tech enables:

• Better decision making

• Faster processes

• Improved visibility

Supply chain current issues in modern environments

Today's supply chains are getting influenced by things like:

• Global trade complexity

• Increasing customer expectations

• Digital transformation

• Sustainability requirements

So organisations need to:

• Stay agile

• Keep adapting

• Invest in systems and processes

The role of AMS in managing supply chain issues

Application management services (AMS) support:

• System monitoring

• Trouble shooting

• Performance tuning

• Continuous improvement

AMS makes sure that:

• Your systems keep running without a hitch

• Your performance is getting better with time

How a supply chain consultant can help tackle supply chain problems

By working with an SAP and supply chain consultant, a business can:

• Identify what's really holding them back

• Create solutions that do the job

• Get their systems up and running

• Tweak their processes to make them run more smoothly

And that means supply chain problems get sorted in a strategic way.

What it looks like when your supply chain is running smoothly

When it's all working well:

• Your systems are working seamlessly together

• Your data is up to the minute and accurate

• You've got your inventory under control

• Your logistics are slick and efficient

And you're on top of any risks, including regulatory compliance, with plans that actually reflect the real world of business.

The result is a supply chain that can adapt, perform and deliver consistently.

Glossary

Supply chain problems

The challenges that are impacting supply chain performance.

Demand planning

Forecasting what you're going to need.

Logistics

That's the moving of goods from A to B.

Talking to all your systems

Getting all your different systems and processes working together.

AMS

That's the ongoing support and optimisation.

What are the current supply chain problems?

You know, the usual things,  visibility, cost, supplier reliability and just getting your goods to the customer on time is a challenge in itself.

Why are supply chain problems getting worse?

Well, it's a complex world out there, and things are moving fast, demand shifts, global supply chains... and then there's the technology.

How can companies sort out their supply chain problems?

By lifting their systems, tweaking their processes and getting a clear view of their data.

What's the biggest supply chain problem at the moment?

For lots of businesses, it's visibility and integration, getting all their systems and processes working together.

Can technology solve supply chain problems?

Absolutely, by giving you real time data and helping you automate.

Making Supply Chains Deliver Today

Supply chain challenges are getting more and more complex. But the solution to dealing with them is surprisingly simple, adapt, get better systems and clear visibility. Get that right, and today's supply chain problems become opportunities for continuous improvement, not barriers to success.