When it comes to errors in supply chain management systems, there are a few things that you probably still need to learn, particularly if you are a new company. Older, well-established companies such as Transmed, who work in the fast moving consumer goods – FMCG industry not only understand this fact but have also developed measures to handle them.
So what do you need to know about supply chain errors? Take a look at the following tips
Table of Contents
1.They Can Be Very Costly
There’s no way to sugar coat this fact but errors in supply chain management systems are costly, even the minor ones. All it takes is one single mistake and you could be facing the following different errors:
- Issues in the product quality
- Miscalculation leading to problems in demand
- Shortage of the supplies which can again cause a backlog of unfulfilled orders
- Delivery problems leading to late or no delivery of goods.
All of these can cause major losses which can be difficult to shoulder. For some businesses, too many errors here can lead to bankruptcy or even cause complete closure of the business.
2.You Can Never Be 100% Error Free
Despite your best efforts, you’ll find that it is almost impossible to keep a supply chain management system 100% free of errors and mistakes.
This is why you need to have proper systems in place to keep an eye on the overall performance of the supply chain. It’s easier for you if you just accept this fact, right from the start.
It definitely saves you a lot of time and money in the long run too. This doesn’t mean that you should stop trying to implement a better system. It just means that you need to always keep an eye on your supply chain system and make amends to it as needed to boost productivity.
3.Can Vary in Intensity
The most annoying thing is that supply chain errors can definitely vary in intensity. Sometimes, it could just be a simple miscalculation but in other cases, it can translate into a bigger issue.
Additionally, if you let the problem fester without fixing the issue right away, you will have bigger issues to face. So, it’s always a good idea to consider errors and the impact they can make in your supply chain system. While some might be minor in nature, others could be bigger and far worse than what you might have previously assumed.
4.Your Response Matters More
It’s a good idea to consider how you will respond to the error at hand. For this reason, you need to have an active response ready which acknowledges the error and promises to do better.
While it might sound simple, it is actually harder to do since most businesses tend to dismiss the errors or shift the blame. This ends up annoying consumers, destroying business credibility and also causing a drop in the value of your business.
So, if you’re facing errors in your supply chain, it’s a good idea to tackle them head-on.