Supply chain management is a complex network that connects manufacturers, suppliers, and consumers. If there is any issue in the production line or distribution sector, it disrupts the supply chain management system. Certain challenges in the supply chain need to be addressed amicably to avoid unfavorable conditions. This blog post will reveal the common reasons that affect supply chain management and the digital strategies to overcome these disruptions. Let’s find better ways to develop supply chain management from innovative and advanced perspectives.

What is a supply chain disruption?

Supply chain disruption is a disturbed situation in supply chain flow. It includes the suppliers, retailers, shippers, and carriers that take part in the transportation of goods. Different kinds of problems in shipment, like delays in delivery and less inventory in warehouses, cause higher costs for suppliers and manufacturers. In this way, customers have to face higher prices. Some kind of supply chain disruption is predictable. Uncertainty, extreme weather situations, or sudden changes in demand also cause disruptions. It affects everyone who is connected to this chain. It includes the following parties:

  • Material suppliers 
  • Manufacturers 
  • Distributors 
  • Wholesalers 
  • Retailers 
  • Consumers 

The supply chain connects parties. If a problem occurs at a specific section, all related parties suffer, and the produced supply chain disruption affects everyone connected to it.

What causes supply chain disruptions?

Internal and external factors cause supply chain disruption. Let’s discuss how.

External factors that cause supply chain disruptions 

A country’s economic, environmental, and political circumstances also affect its supply chain management system. Uncertain situations or unsupportive policies can cause supply chain disruptions. The government should make policies to support supply chain management systems to reduce disruptions. Shipment delays are connected with the transporters. Transportation delays also produce supply chain disruptions. The shippers should advance the transport means to avoid such delays in commodity delivery. Sometimes, shortages of raw materials cause demand fluctuations. In this situation, the suppliers increase their prices causing transportation and labor costs. Information security threats can affect manufacturing business operations. They should invest in security solutions to handle these risks. They can buy insurance to reduce cyber attacks and security risks for targeted shipments.

Internal factors that cause supply chain disruption

Planning and forecasting risks can cause supply chain disruption. Sometimes, manufacturers produce more or less than the predicted demand. Incorrect demand planning can create this situation. It will cause unsold inventory and a lower profit margin. The planners should use demand planning applications to avoid this situation. Sometimes, manufacturing factories send a shipment that is contradictory to the order information due to human error from manual processing. It also causes problems. They should use built-in automation to reduce these errors. Companies face the worst-case scenario due to a lack of contingency plans. They should monitor the availability of suppliers and have options in case of unavailability. Human errors cause shipping delays that increase costs. Wrong inventory calculations at the warehouse can also be a reason for this. This type of delay causes increased costs and even minor financial losses.

What is the solution to overcome supply chain disruptions?

To overcome supply chain disruptions, some organized management strategies should be implemented. The efforts should control internal and external risks with the best possible practices. Using technology in logistics operations is the best way to prevent supply chain disruption. The automation system will reduce human errors and shipment delays, thus maximizing revenues. The digital transformation of the logistics sector will improve security and customer satisfaction. The use of technology will reduce costs and increase profit margins. Another important solution is to develop better manufacturer-supplier communication. They are interconnected with each other. So, better communication will develop a better framework to improve logistics functions.

Drones and autonomous vehicles

Drones and autonomous vehicles will improve the industry’s distribution procedures and transportation network. Self-driving trucks will save labor costs and increase productivity. Drones expedite shipping by providing precise and quick remote access to various locations. The logistics industry will experience an actual change with the implementation of this advancement in technology. 

Use of Technology and Automation

Advanced technology and automation systems are needed in the logistics industry. The technology will boost the supply chain management system and reduce the disruptions caused by human errors. The logistics stakeholders should use digital logistics platforms to monitor and track their shipments. They should use TMS for real-time tracking.

Artificial Intelligence (AI)

Artificial intelligence (AI) is becoming more widely used in logistics to improve data gathering and decrease delay. AI has the potential to make daily operations in supply facilities, logistic routers, and storage easier. Integrating digital technologies with conventional logistics procedures might enable companies to enhance and deliver superior services to all stakeholders. However, digitizing procedures will increase output even further. 

Increase supply chain visibility

Because of the switch to digital technology, one can now get data swiftly that would have taken days to obtain. Assessing your supply chain’s performance in real-time can help you save money and time. Automating data also eliminates many errors and inconsistencies when organizing and gathering data by hand. The digitization process optimizes data collection and increases confidence in the information your data may offer.

In what ways does Tachyon support supply-chain real-time tracking?

The top logistics company in Saudi Arabia provides the most advanced features and options for its logistical services. It has created an online portal where customers can follow their deliveries. With the support of modern technologies, this framework has arranged these supply chain management solutions. Users can more easily track data in real-time by utilizing Tachyon technology and the network. 

Tachyon was created to provide customers with a simple user experience and the ability to monitor their packages from a single spot across their entire lifecycle. The Tachyon platform is really easy to use; here’s how it works:

After registration, the shipping operator can utilize our software system to plan a journey immediately. Following an assessment of the freight requirements, our machine-learning algorithms select the most appropriate carrier for the order. Following that, a particular truck will be assigned to the shipment, and the sender will receive regular updates on its status. The necessary documentation is generated digitally following the truck’s cargo loading. Transporters are paid instantly, get invoices, and get proof of delivery. All aspects of the shipment lifecycle are fully transparent. 

Tachyon provides digital solutions in logistics

We offer the most excellent digital solutions for Saudi Arabia’s logistics industry. We provide a variety of services and advanced tools. While providing logistics services, we make use of digital technologies to handle a variety of difficulties. It benefits consumers and logistics organizations by offering safe services and innovative features. 

Bottom Line

To sum up the whole discussion, we can say that technology and digitalization are the best solutions to face challenging disruptions in supply chain management. Blockchain, data analytics, the Internet of Things, and the use of artificial intelligence can transform supply chain management. Tachyon has developed digital logistics in Saudi Arabia. All logistics companies should adopt technology to help sort out disruptions in the supply chain for logistics industry growth.

Frequently Asked Questions

What are the potential challenges of adopting digital strategies in supply chain management?

Data resources, data security, and privacy are potential challenges in adopting digital strategies in supply chain management. 

How do digital solutions prevent supply chain disruption?

Digital solutions use advanced technology like AI, data analytics, and the Internet of Things for real-time tracking and visibility of the supply chain. These technologies prevent supply chain disruptions.