5 Mistakes You’re Making With Your Supply Chain

Don’t let these mistakes get the best of you


The purpose of supply chain management is to recuperate as much as possible from disturbances during business. The cost of such disturbances and the recuperating process varies based on aspects like supply source, location, inventory, and volume. Greater reliance on lead times is a result of building to order and acquiring supplies just before they are needed. While these changes have their ups and downs, they usually lead to mistakes in the supply chain optimization.

Below are five mistakes you may be making with your supply chain.

1. Check your Inventory

Most companies, especially smaller companies, are susceptible to stockpiling in the hope that something better will come along. The fact of the matter is that companies are over as soon as they are out of cash and their inventory is what eats up their cash quickest. The mentality most companies have is that they never want to run out of inventory, so they over-order to make sure the demand is always met. What they forget is that eventually their holding locations fill up with dated inventory, which is just a pile of cash that is now irrelevant. Remember that having fewer inventories is not the best answer to your problem either, though, as you can also cut your market share that way. The best way to avoid this mistake is by paying the utmost attention to your inventory and that your entire company is on the same page with their goals.

2. Lack of Creative Strategy

A common mistake is the level of comfort companies experience when a strategy has been proven successful. This causes the company to remain at a standstill and causes complacency within the departments. Lacking creativity is just inviting the competition to swoop in and take over. To avoid this, make it a company-wide goal to progress and revolutionize before the threat requires you to. Remain adamant on cultivating and watch out for competition and new business applications. Stay in the present and build upon your stronger future.

3. Reactive and not Proactive

People in higher positions tend to run supply chains reactively because a calamity fails to make an imprint or they can recover fast. Nevertheless, a crisis of a smaller caliber means that the company should take the opportunity to work on their supply chain in a proactive manner. Businesses will have complications in sustaining their supply chains until they find the source of their problems with proactive management.

4. Risk Management

The following issues make risk management a dynamic process that needs businesses to implement one short-term solution after the other. Managers will experience difficulty in proactively assessing problems in the supply chain model. To avoid such mistakes, managers need to tie in their efforts to alleviate risks with solutions that will produce long-term backing of higher management.

Supply chain presents many threats such as:

  • Deliver Delays
  • Increases in demand
  • Quality problems
  • Supplier issues
  • Supply shortages 

5.  Plate too Full

Having a mantra of winning is not always the answer. The company needs to narrow its focus in order to develop a specific strategy of what your supply chain must do. Also, what it will not do. To avoid the mistake of taking on too much, create a strategy with focus. Aim for a few objectives, which stand the most chance to excel. Be sure to avoid unclear goals and techniques that do not have the proper backing. Trying to do everything will result in zero things getting done. Stay focused, stay determined, and stay driven.


Shariq Toor is Content Strategist and Outreach Expert work with the supply chain management gurus at Pivot International. He loves discovering the latest trends in Technology, Social Media, and Health. In his off time, he practices landscape photography and keeps up with his favorite sports. Follow him on Twitter @Shariqtoor.

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