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Anurag Pandey
Student (University), United Kingdom
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Barriers of Supply Chain Management
Can anyone tell me what are typical barriers of supply chain management?
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Eugenio Artaza-Llona
Financial Consultant, Peru
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Common Barriers to SC Improvement Some of the obstacles that threaten your Supply chain improvement include:
Resistance to change. Without vision, without executive leadership, and without a rewards system that recognizes sought-after achievements and efficiencies, it is difficult to move forward.
Refusal to share savings. When your suppliers work with you to make your supply chain more efficient, you ought to find a way to cut them in on the profits. After all, this is what will give them an incentive to continue to help you in the future.
Insufficient resources. The teams are resource-poor, the company is focused on downsizing, and its easier to ignore the supply chain than to invest more resources.
Withdrawal of executive commitment. The status quo is adequate. When senior sponsors return to their normal sphere of activity, interest in new initiatives wanes.
Ignoring inaccurate forecasts. Get better information involves developing closer relationships.
Source: Charles C. Poirier, Advanced Supply Chain Management
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M Brouwer
Student (University), Netherlands
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Common Obstacles of Supply Chain Management Another barrier to successful SCM is:
- Willingness to share information. Without true partnership and information from the partners in the SC, it is much harder to become more efficient. While if everybody has the most up to date information about the sales at the end-consumer, the whole chain can react to that.
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ANUJ KUMAR SHRIVASTAVA
Manager, India
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Here are Some Challenges Which you Usually Face in SCM I believe the main challenge in SCM is to maintain the flows i.e., the material, cash and information flow:
1. MATERIAL FLOW: This is basically dependent on the 5Rs of SCM where selecting of Vendors, deciding terms and negotiation is really a challenge as you need to ensure that this is not hampered as it would directly affect the production.
2. CASH FLOW: This the biggest challenge in SCM as there is a continues conflicts between Finance and Procurement. As a SCM manager you need to understand and ensure that your payment terms, credit period and cash flowing are in synch with the needs of the finance department.
3. INFORMATION FLOW: This is considered a challenge as in the process all the departments would try to pass the ball to the other's court. The logistics, procurement, warehousing, inventory need to be transparent enough not only internally in logistics but also with production, sales and marketing.
Also the competition analysis and cash flow analysis in SCM continuously need proper information which is an additional challenge.
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