Common Supply Chain Issues


Supply chain issues can occur for several different reasons. Whether it be a lack of global supplies or inventory mismanagement, supply chain issues can dramatically affect your business. Therefore, a supply chain is essential to a business’s success. 

Continue reading to learn about common supply chain issues and how you can avoid them. Avoiding supply chain issues is the best way to keep your business thriving. 

Preventing Supply Chain Issues

One of the best things a business can do is prevent supply chain issues before they occur. Most businesses hire a VMI company to manage their inventory and vendors. VMI stands for vendor-managed inventory, which is how several businesses keep their supply chain in check.

A VMI company will sign a contract with a business owner that allows them to control the business’s vendors and inventory. As a result, VMI companies have access to many vendors that most business owners do not have access to. When a business uses a VMI company to manage its inventory and vendors, it puts its supply chain in the hands of professionals that handle all sorts of supply chain issues.

How Vendors Effect Supply Chain

One of the most significant contributors to your business’s supply chain issues could be the vendors that your business uses. Using vendors that don’t provide your business with a large profit margin can be detrimental to your business. In addition, it can be difficult for business owners to navigate the different vendors available to distribute their products. As a result, many businesses use a VMI company to sort through appropriate vendors for their clients.

Vendors that mismanage their warehouse also pose a risk to your business. Disorganization is essential to a properly working supply chain. If a business inventory is mishandled or misplaced, the numbers are skewed. Noticing vendors that mishandle their warehouse is crucial to keeping your business afloat. You need to seek reputable and well-organized vendors to handle your business inventory. 

Disorganized Inventory’s Effect on Supply Chain

Business owners often struggle to implement an organizational system for their inventory. When inventory is mishandled or disorganized, it can cause business owners to order too much of a single product for their business. In addition, disorganized inventory can cost business owners thousands if not rectified right away.

Hiring a third party to come in and set up an organizational system for your business inventory can be a massive game-changer for your business. Businesses that keep their inventory organized often see higher profit margins than businesses that don’t have a sound organizational system. In addition, keeping your business inventory organized is the best way to ensure your orders are correct and you are not overspending. 

How Streamlining Effects Business Supply Chain

To keep your business supply chain in line, you must streamline your inventory and ordering needs. However, it would be best to do so in a way that accommodates your business needs. For example, businesses often experience highs and lows in product sales. Therefore, if you experience a slow season for a specific product, you need to order less of it during those slow times.

New businesses frequently struggle to keep up with supply demands, which severely affects their supply chain and profit margins. In addition, a supply chain is complicated for new businesses to navigate because they aren’t sure about their business demands yet. Fortunately, new business owners can use a VMI company to help with supply chain demands and vendors. VMI companies work with businesses and can gauge how much of a product the business needs during certain times. 

Using Technology to Improve Supply Chain Issues

Sometimes, a supply chain issue occurs because of a misuse of inventory tracking technology. Businesses need to have cohesive and well-maintained technology to keep track of inventory. When there is a technology issue regarding vendors and inventory tracking, the business will suffer from supply chain issues.

Technology is made to make lives easier for people, not harder. If you are unsure of the performance of the technology at your business, you can use a VMI to help your business. For example, VMI companies often use inventory tracking and ordering technology and know how to spot technology that isn’t set up correctly. Well maintained and correctly set up technology can solve and prevent many supply chain issues that your business can face. 

Final Thoughts on Supply Chain Issues

Several businesses suffer from supply chain issues eventually. However, how these supply chain issues are handled will significantly affect the business. One of the best ways to solve and prevent common supply chain issues is to hire a professional to manage your business’s vendors and inventory. 


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