Issues in current system

Currently, supply chain management is concerned with topics related to sustainability and risk management,among others. Some suggest that the “people dimension” of SCM, ethical issues, internal integration, transparency/visibility, and human capital/talent management are topics that have, so far, been underrepresented.

1. Quality and Compliance

Addressing quality at every level of the supply chain – such as raw materials procurement, manufacturing, packaging, logistics, and product handling is an essential task for efficient supply chain management systems. Product quality often goes hand-in-hand with compliance. Enterprises need to ensure that they meet local and international regulatory standards in manufacturing, packaging, handling, and shipping of their products. Aside from passing quality control and safety tests, enterprises are also required to prepare compliance documents such as permits, licenses, and certification which can get overwhelming.

2. Trustworthiness of Intermediaries

Supply Chain Industry is one of the few industries that require or demand synchrony amongst various industry sectors for efficient deployment of a particular good or service delivered. One rotten apple can corrupt the entire basket risking the concerned brand’s reputation.

3. Globalization

Once traditional networks, are now vast ecosystems, with many product variants moving through multiple parties, all trying to coordinate work together. It’s not uncommon for a single company to have multiple contract manufacturers, all drawing upon a similar supplier network and feeding a range of distribution models, from traditional retail stores to online consignment services. Secondly, supply chains and operations have become increasingly dynamic. Product life-cycles are shorter, and ramp-up and ramp-down periods are more intense.

4. Transparency

The consumer or end customer is blindfolded until the product is out for delivery and the question of authenticity always runs behind,in the background. Transparency is related to the trustworthiness of intermediaries as a whole unit as well as the concerned individual responsible by the governing company.

5. Traceability

The culprit here is the analog gaps that exist between systems within enterprises and across enterprise boundaries. This creates traceability gaps in between systems which results in loss of goods.

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