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Eight Biggest Supply Chain Planning Threats

by Techmod org
October 10, 2020
in Technology
0

When it comes to supply chain planning, a company needs to make sure that they have a contingency for any situation. That is why it is important for anyone involved in a supply chain to be aware of the biggest threats to any movement of inventory and cargo. Here is a look at the eight biggest threats to any supply chain. 

Climate Change

While there is debate as to whether climate change is caused by human actions or natural changes in the weather, it can not be debated that there are more extreme weather events around the world. Therefore, companies need to monitor weather threats and are ready to adjust their supply chain at a moment’s notice. 

Raw Material Shortages

Raw material shortages can happen at any time. Therefore, a company should be able to source its raw materials for a back-up source. Also, companies should look at the latest production numbers of rat materials that are most critical for their operations. 

Recalls and Safety Scares

Recalls can happen to any industry. If a recall happens to a company, then this could cause a major ripple effect throughout the supply chain. A company should have a plan in place to deal with any slowdowns or stoppages due to recalls and safety scares. 

Tougher Environmental Regulations 

More and more countries and jurisdictions are tightening up their environmental regulations. This can cause major disruptions in the way companies source their raw materials. Therefore a company should stay on top of the latest environmental laws and regulations to maintain a smooth running supply chain. 

Economic Uncertainty

The economic picture can change at a moment’s notice. A company should be able to quickly adjust its supply chain planning to ensure that the company can operate efficiently during economic expansions and contractions. This will allow the company to enjoy a better supply chain efficiency in any economic environment. 

Drone and Aviation Safety

There is more air congestion than ever. This could cause some issues when it comes to air cargo transport. A company should be able to have alternative transport options to cause certain air routes to become disrupted. These contingency plans can include using alternative air routes or utilizing other types of transportation.

Industrial Unrest 

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Worker strikes and other industrial unrest can happen in any part of the world. A well-prepared company will be aware of any potential worker unrest throughout every level of a supply chain. Also, a company should have a backup plan in place in case a part of the supply chain is disrupted by a strike. 

Supply Chain Planning for Any Situation 

A well-run company should be able to properly operate its supply chain in any situation. Supply chain managers should assess all threats and have a back-up plan in place. This will allow any company to keep cargo and inventory moving no matter what happens.

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