Key Challenges Within Supply Chain in 2018

In supply chain management, obstacles are presented daily. These obstacles hold a facility back from reaching it’s true potential - and also cost money. Fortunately, with every obstacle, there is a solution. Figuring out these issues will allow for great insight into the supply chain and will further enable a production facility to come closer to reaching overall efficiency.

Locating Supply Chain Challenges

The first step is asking one simple question: is the problem within the facility demand visibility or with unforeseeable flow circumstances? These are the two extensive hurdles that supply chains face and restrain companies from growth; with attributes of each issue differing from the other.

• Improper demand forecasting and low visibility will hinder a facility from being able to properly produce the correct output due to unreliable data or system feedback. Reliable data should explain up-to-the-minute demand changes with high visibility. Without this insight, a series of problems, such as too much or too little of inventory, may lead to stock outs or inflated stock holding cost. If a facility is experiencing low data accuracy and stock shortages or surpluses, demand forecasting may be the issue.
• Unforeseen circumstances are common in the supply chain. Anything can happen; machines breaking down, maintenance, an economic collapse, labor deciding not to attend work, and even accidents within a facility. These issues can arise at the worst possible moments and will hold production back - ultimately costing the facility revenue.

      As these issues become prominent within a facility, they can contribute to inaccurate delivery times. Inaccurate delivery times will show signs to the customer that there are issues within the supply chain and may give the facility a bad reputation. Consumers can be unforgiving, making sure the product is delivered on time is arguably one of the most important aspects to be considered. Therefore, with these obstacles to be considered, what are ways to solve these complex issues?

Overcoming Supply Chain Obstacles

These obstacles can be difficult to overcome, but they are not impossible. Taking a deeper look into the area of these issues and considering all (or most) things needed to be considered can move things toward a solution. Accounts to be considered are:

• Shifts Within an Industry
• History & Organization of Orders
• Data Analysis Teams - Marketing, Sales, Finance, etc.
• Planning and Strategic ventures

Advocating awareness in these areas will promote faster problem-solving and comprehension of future problems. Discovering the areas where there are inventory or material issues can have it almost always leading back to either poor planning or unreliable demand forecasting. With complex outdated systems often found to be the culprit of these issues, advanced planning and scheduling systems could be the solution.

Utilizing APS with Supply Chain Solutions

Advanced planning and scheduling systems (APS) utilize real-time demand forecasting and augmented planning for unforeseen circumstances. It is a collaborative system that is easy-to-use and diminishes the inconveniences of manual-entering systems. It also includes easy scheduling of orders with high visibility, accurate data, “what if” analysis, and flexible alerts. APS systems are changing the manufacturing industry and allowing production facilities to up their game against competitors. 

Related Demand Forecasting Video 

 Key takeaways from this video:

• How PlanetTogether APS links demand, orders, and inventory in one view
• How better visibility reduces stockouts, surpluses, and late deliveries
• How the inventory plan helps you react faster to unforeseen disruptions
• How what-if scenarios support smarter, lower-risk schedule changes
• How visualizing demand and inventory together supports a more resilient supply chain

Help Your Team Fix Supply Chain Issues They Can Control

Supply chain problems often get lumped together as “unpredictable”—but many challenges come from low demand visibility, outdated systems, and weak forecasting practices, not just bad luck. At the same time, you’ll never eliminate unexpected events like machine breakdowns or sudden market shifts. The key is helping planners focus on the levers they can control and using APS to turn that insight into a better plan. Key_Challenges_Supply_Chain_201…

Download our one-page “Demand Planners: What They Can and Can’t Control” infographic to help your team:

• Separate true unpredictability from problems caused by poor demand visibility and outdated tools
• Set realistic expectations with Sales, Operations, and Finance about forecast limits and data needs
• Use APS plus better demand data to reduce stockouts, surpluses, and missed delivery dates
• Focus improvement efforts on the decisions and processes that actually strengthen your supply chain

Use it in planning and S&OP meetings as a quick alignment tool so everyone understands where demand planning ends, where APS-driven scheduling begins, and how both reduce your biggest supply chain challenges.