Sep 28, 2023

In today’s busy, digitized world, supply chain workflows find themselves ever more complex yet increasingly more susceptible to disruptions. One supplier’s delay can cost retailers millions in shortages. Similarly, improper merchandising and cycle counting may contribute to over-production when retailers overestimate the number of products needed from manufacturers. Fluctuating fuel costs have been a consistent culprit behind increasing retail prices. Supply chain disruptions put a spotlight on our fragile system a little too late. As we near the end of 2023’s third quarter, supply chain experts suspect potential disruptions and shortages in the following fields:

• Automotive Production – If you remember a few years ago, the semiconductor chip shortage was expected to wreak havoc on electronic production, particularly that of car factories. While the chip shortage has eased since its announcement, consumer demands continue to exceed available inventory and assembly speed. Studies suggest pandemic-induced struggles have set production levels back by a decade, and while recovery is within the realm of possibilities, most automotive manufacturers still expect to deal with new challenges from foreign tensions and electronic consolidation within vehicles – a trend that demands more semi-conductors to connect phones and other peripheral devices to a car.
• Food and Beverage Sector – Most consumers are growing accustomed –and annoyed– by recurrent shortages in local grocery stores, and the trend isn’t expected to ease until mid-2024. Shifting weather patterns, international wars, and inconsistent ingredient tracking and sourcing have served as obstacles in production for main kitchen staples such as beef, rice, and cooking oils. Current truck driver shortages may also play a role in the delayed transportation of temperature-sensitive goods.    
• Pharmaceutical Production – New FDA-approved medications are developed to combat some of the nation’s leading illnesses, yet because of high demand, many are at risk of shortages, including penicillin, one of the most foundational ingredients in American medicine. As of now, supply chain specialists expect recovery by spring of 2024, potentially affecting millions of treatment-seeking Americans.  

This list is by no means exhaustive since most businesses still expect unforeseen disruptions to reshape the supply chain. As a matter of fact, most businesses can spend over $3.5 million per disruptive event depending on their industry. A fragmented supply chain exacerbates costs as companies are caught in the consequences of change with little warning. While disruptions are bound to happen, businesses can best prepare operations by...

Identifying the Gaps in the Fragmented Supply Chain

Every business presents unique constraints and workflows. However, the following symptoms often indicate potential vulnerabilities:

• Inconsistent Data Sharing – The requirements placed on a manufacturer can be quite different from the expectations faced by distributors. Between federal regulations and internal identifiers, an individual product can carry several data points, not all easily readable by your management system. As a result, key information may get lost as products progress down the supply chain.
• Conflicting Receiving and Shipping Schedules – Material handling and stock transportation is a dynamic balance between scheduling and storage. As new shipments leave the loading dock, the recipient’s receiving dock must be notified and prepared to welcome new inventory; however, communication breakdowns may create scheduling conflicts, stalling product movement.
• Increasing Number of Defects – Quality assurance checkpoints can be overwhelmed during fast-paced production and fulfillment. Consequently, defects may go by unnoticed, resulting in higher return rates and potential recalls. Siloed operations may further complicate traceability, amplifying the recall’s reach since it becomes difficult to pinpoint where errors originated.

• Inability to quickly adjust production/fulfillment during high demand – Lastly, consider tracking the speed at which production and/or fulfillment adjusts during peak seasons. Rigid workflow elasticity may suggest teams lack visibility into crucial inventory data such as purchase patterns and shipping changes. Moreover, if businesses aren’t able to adjust to sudden demand, they are at a greater risk of losing customers and profits as competitors rise to meet demands.  

Closing the Gaps in the Fragmented Supply Chain

A step-by-step assessment of your main workflows will help target hidden bottlenecks and blind spots contributing to disruptive events. After compiling a broad view of your vital tasks, it is not uncommon to start implementing one or a combination of the solutions below:

• Standardized Data Processing – Teams should not have to compromise on which data points to track for their internal records and overarching regulations. Therefore, customizable forms deployed within adaptable software can help businesses add and adjust data according to the shipment’s destination. Agnostic operating systems like Android ease integration by adapting forms to fit your deployed device, providing a standard workflow across your facility and shareable with partners.  
• Blockchain Communication – Emerging technologies are becoming ever more commonplace as they simplify previously-complex tasks. Blockchain is one of them since it empowers traceability without compromising data security. Versatile in nature, blockchain connectivity allows businesses to access crucial data, upload updates, and verify information for better decision-making.

• Adaptable Outdoor Connectivity Plans – Real-time visibility depends on unbroken connectivity. Therefore, when businesses wish to track moving inventory outside of the four walls, a flexible connectivity system proves beneficial in linking transportation teams to administrators for better routing, shipping ETAs, and inventory monitoring. GPS, LTE, and 5G cellular are a few of the modern connectivity options bridging outdoor and indoor teams. However, before making a choice, it is highly recommended that you investigate connectivity options alongside a solution provider to identify possible pitfalls and constraints.
• Field-Ready Inventory Tracking – In addition to reliable connectivity, outdoor workflows will also require durable hardware to withstand the unique challenges of field operations such as drops to concrete, contact with water, and extreme temperatures. Automation solutions can go a step further by consolidating multiple tasks to spare delivery teams from carrying multiple devices.
• Erasure of Manual Data Capture – Closing fragment gaps demands that businesses limit manual systems since these cannot be quickly updated and shared across entire supply chains. Moreover, paper-based tracking is more prone to errors, putting the supply chain at risk if mistakes aren’t quickly resolved. On the other hand, automated data scanning and sharing eliminate repetitive tasks while transcribing information into a standard system, ready for easy sharing with partners.
• Consistent Solution Revaluation and System Testing – The saying goes: the only thing predictable about the future is its unpredictability. As a result, it is important to consistently revisit automation plans to ensure KPIs still meet expectations and catch potential breakdowns before they affect operations. Working alongside an experienced support team allows you to design systems and later track their performance with specialized technicians who previously understood your business challenges and goals.

A unified team is a winning team. To foster business resiliency, it is imperative that supply chain participants close workflow gaps, regardless of their size. The first step to accomplish this is to evaluate your communication and data sharing systems in search of any of the symptoms outlined above. After identifying fragments, your automation team can pair your needs with flexible modern technologies, designed to unify teams instead of separating them.