3 Common Supply Chain Mistakes to Avoid


It is no secret that supply chain mistakes are costly. Unfortunately though, they happen. Due to the pure size of a supply chain, the smallest error is magnified. For this reason, it is imperative for companies to maintain best practices in supply chain management and in this article, Millennium Logistics Management provides 3 common supply chain mistakes to avoid.


The following common mistakes lead to terrible supply chain performance and affect their supply chain significantly. Having a basic understanding of bad habits and simple slip ups will help your business avoid them. Let’s explore these common mistakes:



#1: Surrendering Control

Having too many supply chain partners is a common mistake. This becomes a problem when decisions have to be shared with numerous people; the more partners you have, the more complicated managing your supply chain becomes because not everyone will be on the same page. Having too many partners results in reduced communication, mediocre exchange of data and less productive supply chain efforts all which lead to more mistakes. Therefore, keep things simple by keeping your supply chain simple and concise by working with fewer partners.



#2: Inadequacy of Supply Chain Visibility

There are many companies operating without proper visibility which oftentimes means they make important supply chain decisions based exclusively off of sales data and that is not nearly enough insight to make knowledgeable decisions. There are other factors to consider such as where your company’s raw materials come from, where they go and where the finished goods will end up. If you fail to recognize your supply chain visibility, you will end up losing efficiency opportunities and risk management capabilities will be severely limited.



#3: Supply Chain Disruptions

Disruptions are something all supply chains experience, they are inevitable. However, depending on the severity of the delays, the costs can be minimal or can cost you millions. If your supply chain has constant delays or has difficulties gathering raw materials it can be harmful to your business and your customer relationships. If you think about it, even just a few late deliveries can significantly hurt your reputation. It is imperative to put together a risk management plan for any disruption circumstances and doing so will reduce additional costs on inventory, rushed delivery and will allow production to keep moving effectively.



Many businesses make these mistakes and the results are always the same; they lead to disastrous supply chain performance and without a doubt experience a considerable increase in operating costs as well as supply chain disruptions and their customer service suffers greatly. Don’t make the same mistakes! If you would like more information or are interested in finding out how Millennium Logistics Management can help improve your supply chain system, contact us today.



Supply Chain Management

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