5 Biggest Supply Chain Challenges for Manufacturers

WHAT ARE THE BIGGEST SUPPLY CHAIN CHALLENGES

In an  McKinsey survey opinions  are divided on their companies’ preparedness to meet those challenges, and fully two-thirds expect supply chain  challenges risk to increase. This chart shows  the top 5 biggest supply chain challenges for manufacturers and retailers across industry

Different organizations in the supply chain may have different, conflicting objectives depending by type

1. Manufacturers: Transportation and Shipping Costs Manufacturing and production ,quality control
2. Distributors: low inventory, reduced transportation costs, quick replenishment capability 
3. Retailers:shorter order lead time,  stock shortage,high in-stock inventory, no of SKU,efficient inventory management analytical engine
Bullwhip effect; One of the most glaring challenges ,in supply chain  is the phenomenon of orders and inventories getting progressively larger (Bull whipping happens when ordering/producing is done on large lots which increase the safety stock of suppliers and its corresponding carrying cost.
4. Vendors/Suppliers:Uncertainity of vendors,suitability of suppliers 
5. Omnipresent Supply Chain :The effective presence or lack of an omnipresent supply chain 
6. Labor and arbitration issues, shortages of labor