5 Challenges of Global Supply Management that CIOs Should Know

Food and Beverages Tech Review | Tuesday, August 11, 2020

With increasing international competition, the businesses are dealing with great pressure to keep their pace. The growth of the company relies on its expansion into new markets, but while doing this, it becomes difficult to manage the supply chain. Let's have a look at the challenges that the global supply chain management is facing.

FREMONT, CA: There is no wonder that the world of supply chain management is getting more tangled with each passing day. The supply chain is referred to as a connection between the business and its suppliers to manufacture and distribute a particular product or service to the final buyer. This network comprises of numerous activities, entities, people, data, and resources. It also explains the steps that are taken to take the product or service from its original position to the client. These steps include moving and converting the raw materials into finished products, transporting these products, and finally distributing them to the end-user.

The supply chain management is a critical process as the optimized supply chain is responsible for the cost reduction and fast production cycle of the industry.

Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.

There are five global supply chain management trends, revealed by the supply chain executives, which will define the industry in the coming years. According to the reports, the way the companies will manage these challenges will ultimately decide the success or mediocrity of their business.

Below are some of the expected challenges in Supply Chain Management.:

1. Improved Supply Chain Plasticity throughout the Complete Process: The global supply chain management businesses should turn their focus on their efforts towards the enhancement of the flexibility of their downstream and upstream supply chain. This can be achieved by adjusting the overall network design as well as improving the supply chain flexibility. Further, the management of the process and product complicacy need to complement customization at late-stage. The global suppliers and client networks, along with customized products, secure the growth. That is why it has become critical to manage the complexity and globalization of the supply chains. 

2. Blending of Supply Chain Organization: The company needs to perform integration of all its functions rather than particular ones for integrating and empowering supply chain organizations. When it comes to the comparison of global with local responsibilities and functional decisions, it becomes essential to deploy the appropriate sets of skills and expertise, just like taking empowered decisions with clarity. Global supply chain organization should be understood as well as treated like one integrated organization. By supporting all the functions of the supply chain, one can reap effective and improved outcomes.

3. Engineering the total price of Supply Chain: The global supply chain management can surpass this challenge of engineering the total cost of the supply chain through the deployment of non-core functions, implementation of regionally-configured supply chains, optimization of total costs of supply chains and processes, and country utilization at low-cost. This challenge emerges because the client needs and competition demand customized supply chains and regional product offerings. Subsequently, the optimization cost of the end-to-end supply chain is critical.

4. Implementing end-to-end Supply Chain Risk Management: This is one of the biggest challenges faced by the global supply chain organization. However, it can be overcome by using appropriate strategies. This is the point where the enterprises should turn towards strategies like demand and supply risk optimization, supplier risk management, working capital, and asset management as well as key partner supply chain risks. In simple words, from demand planning to the extension of production capacity, the opportunity and risk management should compass the whole supply chain. The management should also involve the supply chains of key partners.

5. Improvised Customer Access and Veracity of Supply Chain Planning: For achieving improvised customer access and veracity of supply chain planning, the companies need an improvised point of sale and partnering concepts, end-to-end supply cooperation, response time in optimization and reduction of the supply chain, and real-time demand and supply planning. This challenge comes to picture as there is enhanced supply chain volatility and uncertainty, which is the result of market transparency, reduced customer loyalty, higher price sensitivity, and product commoditization.

The above challenges are difficult to overcome. However, it can be handled if adequate and effective steps are taken. The organizations have to comprehend and analyze each problem and plan an effective strategy to curb it. 

More in News

Do users know the formula for a successful restaurant? A varied menu and good cuisine are two different things. But, with an effective workflow, businesses can offer a wonderful dinner to devoted consumers on time. Restaurant management can help with this. A restaurant cannot run without an RMS, which performs various tasks. It is a catch-all phrase for many restaurant management systems and procedures that guarantee superior customer service. Being a restaurant owner involves managing a lot of moving elements. So, one must create a system that enables users to monitor everything in one location. Let’s look into top restaurant management system elements you should consider to aid with that. •  All-in-One Solution The truth is that no RMS is flawless. But, one wants to search for a system that enables one to monitor as many components as possible. For example, one must consider utilizing a POS system that allows businesses to handle payments, manage restaurant inventory, and accept orders. One can track three items in one dashboard by doing this. It also aids in establishing an efficient procedure for managing any business. For instance, one may determine if they have all the components needed for a specific dish. •  Intuitive Menu Configuration Simple menu configuration is one of the top items to search for in restaurant management systems. This entails that users can easily adjust the menu items and pricing. One should be able to configure their menu without needing to contact customer assistance from the service provider. Also, one would want to avoid restarting the entire system to change the menu. Instead, seek out a system that enables users to effect such modifications immediately. Ask their service provider if users need clarification on whether their desired RMS provides that capability. •  Excellent Technical Support Even if users may be tech-smart, they might still need to learn about their RMS. The system needs expert assistance to be fixed; this is where first-rate technical support enters. To that end, seek out a service provider who provides hotline or chat help available around the clock. However, remember that a restaurant's biggest days of the week are occasionally the weekends. One will thus want an RMS provider that provides technical help even on weekends. By doing this, businesses can save time manually computing and writing out client bills. ...Read more
In recent years, the cannabis industry has witnessed significant advancements in technology, including the integration of artificial intelligence (AI) into various aspects of the production process. One area where AI has shown considerable promise is in the creation and delivery of personalised cannabis products. In recent years, the cannabis market has witnessed significant advancements due to the burgeoning discipline of artificial intelligence (AI). As an understanding of the therapeutic potential of cannabis grows, personalised cannabis products have gained immense popularity. This surge in demand for individualised experiences aligns perfectly with AI's crucial role in tailoring cannabis products to meet specific requirements and preferences. With the widespread adoption of cannabis for both medical and recreational use, AI-driven algorithms are becoming instrumental in optimising dosages and unlocking the full potential of this remarkable plant for users worldwide. By paving the way for customised experiences, the cannabis industry is leveraging the power of AI to revolutionise the market and cater to the diverse needs of consumers. Precision Cultivation AI-driven systems have revolutionised the way cannabis is grown and cultivated. By utilising machine learning algorithms, growers can optimise plant health, growth, and yield. AI-powered sensors and cameras constantly monitor and analyse plant health indicators, such as temperature, humidity, and nutrient levels. The data collected is then used to adjust environmental conditions in real-time, ensuring each plant receives precisely what it needs for optimal growth. Personalised Dosage and Potency Every individual's response to cannabis varies, and finding the right dosage and potency can be challenging. AI can assist in this aspect by analyzing data from various sources, including the user's medical history, genetic profile, and previous cannabis usage. By applying this data, AI algorithms can recommend personalised dosages and cannabis strains that align with the user's specific needs, maximizing therapeutic benefits and reducing potential side effects. Product Recommendations AI-powered platforms can analyse vast amounts of data from customers, tracking their preferences, buying behaviour, and reported effects of various products. With this information, AI can make tailored product recommendations to customers, suggesting cannabis strains, edibles, or other products that are likely to meet their desired outcomes. This enhances customer satisfaction and also drives sales for businesses. Predictive Analytics for Market Trends AI can analyse data from multiple sources, such as social media, surveys, and market trends, to predict the next big thing in the cannabis industry. From identifying emerging strains to forecasting consumer demand, AI's predictive capabilities allow businesses to stay ahead of the competition and adapt their product offerings accordingly. Safety and Compliance Ensuring the safety and compliance of cannabis products is crucial for the industry's growth. AI-powered systems can help track the entire supply chain, from cultivation to distribution, to identify potential contamination or quality issues. Furthermore, AI can aid in compliance with ever-evolving regulations, reducing the risk of non-compliance penalties and reputational damage. The integration of AI in the cannabis industry has the potential to revolutionize the way products are cultivated, recommended, and consumed. Personalised cannabis products can offer enhanced therapeutic benefits, improved customer satisfaction, and increased market competitiveness. However, it is essential to address the challenges and ethical considerations associated with AI implementation to ensure a responsible and equitable cannabis market in the future. Through proper regulation, transparency, and continuous improvement, AI can be harnessed as a powerful tool to propel the cannabis industry forward while benefiting consumers and businesses alike. ...Read more
In recent decades, the food and beverage manufacturing industry have experienced significant growth with the invention of new products. With an ever-growing population, food manufacturing companies also need to keep up with the demands of their customers. Automation has become an important part of the industry to meet the growing food industry's demands as it has changed the food manufacturing industry by bringing efficiency and consistency to the products. IoT advancements and consumer expectations of improved food quality and safety have prompted the food industry to automate most industrial processes. Also, the growing demand for advanced and processed packaged foods, as well as food safety regulations, have significantly boosted the demand for automation. Palletizing and depalletizing, packaging and repackaging, pick and place, grading and sorting, processing, and logistics have all been simplified by automation. There are many benefits to automating food production that is elaborated on below: The need for better quality control: The quality of food remains a top concern for both producers and consumers. Detecting and isolating defects is easier when packaging and processing are automated. By doing so, defective products are prevented from entering the market, and underlying manufacturing errors are corrected. The food and beverage supply chain involves so many workers, processes, and touchpoints that it can be difficult to track and monitor food. It's challenging to guarantee food safety and traceability in a system that has so many mechanisms. Automation, however, can completely change that. Defects and issues can be detected much earlier in the supply chain using the right systems. Detecting problems during processing or packaging can reduce the number of problematic goods entering the market. Automation can help organizations resolve any issues along their supply chain. Contamination can be controlled and eliminated using the appropriate cooling and air compressor systems. By using analytics and automation, goods and foods can be better protected along the supply chain. Safety for workers is improved: Food processing can be simplified by combining machine vision and automation. AI, automation systems, and modern robotics are often used to control repetitive and even dangerous tasks. By doing so, organizations can spare human laborers from the dangers and accidents of a particular activity. Long-term, increased safety, and protection for the workforce can also reduce maintenance and operation costs. Furthermore, it can lead to wider and faster adoption of novel regulations and standards among the entire workforce. With automation, it is possible to simply update the existing hardware and software to be compliant, saving the trouble of updating everything else, such as safety gear for the workers. Boosting efficiency: In some cases, machines or automation systems can perform work faster and better than human laborers. It is impossible for a machine to tire or slack off unless it has a malfunction. In other words, modern technologies won't replace workers outright but rather enable them to work more safely, better, and faster alongside them. The order fulfillment process can be made more efficient by deploying AI and automation robots inside warehouses. In addition, it speeds up the entire system, so customers get their items faster. It also improves workers' performance and safety, eliminating unsafe tasks or mechanical work. Food manufacturers can improve food safety, provide consistent quality, and unprecedented traceability, and that is because of automation. ...Read more
A food processing line has little tolerance for delay. Raw ingredients arrive with limited shelf life, equipment must withstand frequent cleaning and finished products need to meet the same specification hour after hour. Food processing transforms agricultural products into packaged, preserved or prepared foods through activities ranging from cutting and freezing to mixing, cooking, fermentation and packaging. Scale gives the industry substantial economic weight. USDA’s Economic Research Service reports that US food and beverage manufacturing establishments employed roughly 1.7 million people in 2022, representing a significant part of manufacturing employment. Meat, bakery, beverage, dairy and fruit and vegetable processing account for very different production environments, making technology requirements equally varied. Margins can leave little room for mistakes. Commodity prices move, energy costs change and retailers resist unnecessary price increases. A processor that loses a few percentage points of usable product during trimming, changeovers or packaging may be discarding profit alongside food. Yield Becomes a Technology Question Processors have always measured output against raw material inputs. Better sensors and production data now make it possible to inspect losses at more precise points on a line. Machine vision can identify defects, incorrect labels or package problems without relying entirely on manual inspection. Automated portioning equipment can reduce variation when products need to meet specific weights. Small gains become financially meaningful when repeated across millions of units. Food variation makes automation harder than it looks. Potatoes, chicken breasts and strawberries are not manufactured components with identical dimensions. Equipment must cope with differences in shape, moisture and texture without damaging usable product. Changeovers add another complication. A plant producing several recipes may need to clean equipment and reset lines between products. Faster changeovers improve equipment utilization, but allergen controls and sanitation procedures cannot be rushed simply to gain production time. Labor Shapes the Automation Case Food manufacturing remains labor intensive in many categories. Employees sort products, operate machinery, perform quality checks and maintain equipment under conditions that may be cold, wet or physically demanding. Automation is attractive where tasks are repetitive or difficult to staff. Robots have become more capable at packaging and palletizing, while advances in vision make variable food products easier to handle. “Safe food has to emerge from the line at the required quality, quantity and cost.” Economics differ by plant. High-volume lines producing the same product can justify specialized machinery more readily than facilities with frequent recipe changes and shorter production runs. Maintenance skills also matter. A robot that removes several manual tasks introduces equipment that technicians must troubleshoot. Processors need to account for engineering and maintenance capability before assuming automation will simply reduce labor requirements. Safety Starts Inside the Process Food safety remains the industry’s unforgiving requirement. The CDC estimates foodborne disease causes about 48 million illnesses in the United States each year. Processors sit at an important point in prevention because contamination can spread through large production batches before products reach stores. The FDA’s Food Safety Modernization Act emphasizes preventive controls for covered facilities. Processors need to identify relevant hazards and establish controls where required rather than depend solely on finished-product testing. Environmental monitoring can help detect pathogens in processing environments, particularly where ready-to-eat foods are exposed after a kill step. Laboratory results provide evidence, but plant design and sanitation remain fundamental. Connected monitoring equipment can also produce better records for temperature, cleaning or other process variables. Digital data is useful when employees can respond to deviations rather than simply accumulate more measurements. Traceability Moves Closer to Production A recall becomes far harder when a processor cannot quickly identify which lots used a particular ingredient. Accurate lot records reduce the amount of product that may need to be held or removed. FDA’s Food Traceability Rule establishes additional recordkeeping requirements for foods on the Food Traceability List. Federal implementation timing has changed, but the commercial reason for better traceability remains intact. ERP and manufacturing systems can connect ingredient receipts with production runs and outbound shipments. Integration quality matters. A supplier lot written on a paper form outside the digital record can break the chain precisely when investigators need it. Cybersecurity Reaches the Plant Floor Modern food plants contain more connected production equipment than earlier generations. Industrial control systems, sensors and remote maintenance links improve visibility while creating another security concern. A cyber incident can interrupt production even when no food data is stolen. NIST’s Cybersecurity Framework gives manufacturers a useful reference for identifying assets, protecting access and preparing for recovery. Legacy machinery complicates the task. Equipment can remain productive for decades, long after its original control technology becomes difficult to secure. Replacement is not always financially reasonable, making network segmentation and controlled access important safeguards. Processors Demand Practical Returns Mature food processing technology providers understand sanitation, line speed and product variation rather than importing generic factory tools. Equipment needs to survive the actual environment where employees will use it. Buyers should calculate savings from yield, downtime and labor against installation, maintenance and cleaning requirements. A technology that slows sanitation every night can erase productivity gained during the production shift. Food processing will become more automated, but progress will be uneven. High-volume tasks with measurable losses will attract investment first, while processes requiring dexterity or frequent changes will retain more human work. The industry’s technology test remains unusually concrete. Safe food has to emerge from the line at the required quality, quantity and cost. Automation and data earn their place when they improve that equation without making the plant harder to clean, maintain or trust. ...Read more
Top