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

Introduction

Ask anyone in supply chain management and they'll tell you that there's a whole lot of trouble brewing out there. The modern supply chain is a complex beast, hampered by globalisation, rapid technological change, economic pressure from every angle, shifting customer expectations, global tensions, and a planet on the brink of climate chaos. For medium to large enterprises in manufacturing, warehouse management, retail and distribution - and 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 cutting it any more. Understanding the root causes of the chaos that's besetting supply chains, from disconnected systems to overly complicated processes, is an absolute must for organisations desperate to protect their efficiency, keep costs under control, stay reliable and stay ahead of the competition. 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?

If you don't address the current supply chain issues, the consequences are dire. With global tensions and climate change putting even more pressure on supply chains:

• Delays just get longer as supply chain disruptions change the playing field

• Rising costs start to eat away at profit margins

• Inventory becomes even more unreliable

• Customer expectations aren't met

That's why it's so crucial to get to grips with what's going on in your supply chain. By spotting the problems and reacting in the right way, you can build stronger, more resilient and future-proof supply chains. If you're reviewing your supply chain performance, the goal is simple: get a handle on what's going wrong. Work out what the impact is. Then fix it so that you can boost performance.

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

• The pressure on costs that will squeeze profit margins

• Changing customer expectations

• The concentration of risk across interconnected networks

Shipping delays can reduce product availability and drive up retail prices, and global supply chain disruptions are estimated to cost businesses a staggering $184 billion each year.

In other words, these are the problems that are disrupting supply chains right now and need to be addressed.

The Big supply chain problems organisations face today

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

There's just 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, especially when getting the data you need from external partners is slow and unreliable

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

• 65% of businesses admit to having at least one bottleneck in their supply chain

• 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, so you need to get closer to your supply chain partners to protect your supply chain continuity

• In 2023, raw material shortages were the major supply chain challenge, with 61% of respondents naming them as a top disruption - which is why contingency plans and strategic partnerships are so important when sourcing risk becomes a problem

Transport and logistics delays

• There's congestion in the shipping and delivery networks, including sea freight and global shipping disruptions, which is causing shipping costs to go up and down, while droughts in places like the Panama Canal have reduced capacity and delays from external partners are causing supply chain continuity problems

• Inefficient routing and planning is making delays even worse, while relying on just one or two suppliers is leaving you without a backup plan

• Strategic partnerships and supplier diversification are becoming more important, with 51% of business owners expecting to reshore or nearshore suppliers in the next three years

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

• You're 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

• A severe drought in the Panama Canal forced transit restrictions and reduced daily ship crossings by 32% in 2024

• Shipping costs went up by 35% between December 2023 and January 2024

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. Result:

• Missed sales opportunities

• Delayed deliveries and other operational pains

• Increased operational pressure

Another example of this problem -

• Logistics costs go through the roof due to all sorts of regulatory pressures - you can fill in the blanks

• Transportation routes are clunky, inefficient and a chore to manage

• Carbon emissions are a major compliance headache - and they're not cheap either

This all adds up to:

• Reduced profitability

• Slower delivery performance

• Skyrocketing operational costs which really compress corporate profit margins in supply chains - it's a bit of a vicious spiral

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 you've got suppliers who are delayed because of a geopolitical conflict, that messes up your inventory planning and your customers end up with delayed orders too. Business leaders deal with this on a daily basis while dealing with supply chain challenges - which is why maintaining some level of chain resilience really matters.

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 go through the roof. It all adds up to a situation where you really need to streamline things before these issues start affecting service levels.

In fact, 61% of logistics managers are saying that their supply chains are not operating normally.

Global supply chain complexity

• We're talking multiple suppliers and regions here

• This makes it 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

• We don't have integration between systems

• Data is stuck in silos across departments, where trade data alone can't show hidden dependencies across the whole value chain - which just makes things harder across international supply chains

Manual processes

• We're still relying on spreadsheets or manual updates which can make dependencies across production processes hard to see - and data silos mean trade data alone can't show the full picture

Poor data quality

• We're 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

• This could be political, economic or environmental factors like trade wars and broader geopolitical dynamics which just make critical supply chains go haywire

• 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 - especially as global geopolitical dynamics, conflicts trade wars and tariff volatility makes critical supply chains go haywire

• Slower processes

• More work by hand

• Financial impact

• Higher costs

• Reduced margins

• Customers aren't happy

• Deliveries are delayed or wrong

• We can't scale operations

• Labour shortages and talent shortages just make things worse - and with geopolitical tensions disrupting global supply chains through conflicts trade wars rising trade barriers and sudden tariff impositions expected in 2026, and extreme weather events disrupting major freight flows

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

Labour shortages reached record highs in 2021 and 2022, and by 2025 theyre expected to get even worse in sectors like healthcare and construction - the American Trucking Associations are also estimating a truck driver shortage of over 60,000 in 2023.

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

To be honest, 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

That's the challenges that are impacting supply chain performance.

Demand planning

Forecasting what you're going to need.

Keeping an eye on your stock

Tracking and controlling what you've got in the warehouse.

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 - the bit that keeps your systems running like clockwork.

Frequently asked questions

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, clear visibility, and get your processes humming. Get that right, and today's supply chain problems become opportunities for continuous improvement, not barriers to success.