Common Supply Chain Mistakes and How To Resolve Them

No matter where your company fits in the production line, it takes a lot of hard work and even more time to fully develop a supply chain for your organization. Learning from the various pitfalls that have plagued other businesses will put your company in a much better position to succeed. Here are five of the most common supply chain mistakes and how to resolve them.

Not Diversifying

One of the biggest mistakes a company can make is to source all its materials from one supplier. This single action not only subjects your company to the whims of the supplier but also causes disruptions in production if there are any ordering issues. Creating a network of different suppliers who can meet the demands of production can save you money and keep you from experiencing delays.

Rushing System Implementation

There is nothing wrong with trying to emulate the successes of your competitors but rushing to mimic their decisions can cause its own set of problems. Any time you are considering making changes to a functioning supply chain, you must carefully examine the changes to avoid costly disruptions. This is also true when putting a new product to market. Be sure that your supply chain can handle the added strain, or your expansion could turn into an implosion.

No Communication

As with all things in business, communication is the key to success. But a breakdown of communication in your supply chain will disrupt the entire company. All links in the supply chain must be fully informed of what the others are doing to prevent delays from material shortages or changes in production.

Poor Planning

Poor planning is a mistake that can plague every part of the supply chain. When there are no backup plans in place, there is an increased risk that any sort of disruption will turn into an event that shuts down the entire supply line.

Lack of Accountability

A lack of accountability is a huge problem that has plagued many failed supply chains. From the top of the corporate ladder down to the bottom rung, holding employees accountable for completing their jobs will turn a functional supply chain into one that thrives. You must clearly set expectations for all workers who play a role throughout the entire logistical operation.

If you find that your current third-party freight partners are letting you down, contact the professionals at Diversified Transportation Services.