Addressing supply chain issues is crucial for both existing and new businesses.
Forward-thinking organizations view strengthening the supply chain as an opportunity for business growth
Some other organisations on the other hand may perceive it as an impediment.
In such organisations, supply chain often functions as a kingdom by itself hindering the realization of its potential for enhancing efficiency and impacting the top and bottom line.
Two critical areas in supply chain management prone to discrepancies are:
1. Purchase of Raw and Packaging Material:
If an organization’s procurement prices significantly exceed market prices, it adversely affects brand competitiveness and profitability. Promptly raise the alarm and rectify this discrepancy.
2. Production Planning and Control:
If the sales team reports frequent shortages, scrutinize the production planning process and rectify the flaws urgently.
While numerous other SCM areas require attention and streamlining, it’s crucial to acknowledge that disrupting established processes may provoke resistance and backlash. One must exhibit courage to face the consequences, prioritizing organizational transformation for positive change.
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