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Supply Chain Pitfalls; Steer Clear!


Companies are always looking for cost-effective ways to do business while protecting the integrity of their entire workflow systems. One of the reasons they look inwards for better ways to optimize their forward and reverse flow of goods and services.

In sustaining their vast network of resources, companies must track key performance metrics to analyze and fully understand their business environment. Knowledge of the system provides the requisite insight for strategy formulation and execution to balance the supply chain requirements.
Managers are poised to eliminate scourging setbacks in their supply chain to achieve their strategic goals.


The first thing you should look out for; are blind spots from where you could be bleeding cash. They are areas that informal intermediaries, may be leveraging on to disrepute your business. Loopholes emerge from time to time as the delivery channel changes or as the demand chain improves. Your supply chain might change a bit to create a loophole; minor or major. As a result, it is vital to ensure continuous monitoring of the system.

Third-party logistics providers could be of advantage to an organization, but not when they do not add value to that organization; they could jeopardize the integrity of that organization by their incompetence. Companies should always analyze the productivity of their outsourced service providers to find out if they are worth staying. Also, it is essential to perform an alternatives analysis from time to time to identify and implement better options that have higher potential values.

Saboteurs who produce and distribute counterfeit consumer goods can mar your supply chain. Surprisingly, the same supply chain partners distribute these damaging products in most cases. Therefore, companies should monitor and investigate their market always, with techniques and procedures that unveil the mismatch between demand and supply so that they can track the source of their product counterfeit and legally eliminate them.


The services of independent intermediaries may not be relevant for too long even though, initially, they could serve as a channel to distribute products. The pitfall in engaging the services of these middlemen investors is their influence on the benchmark price set by the organization. Which may affect the rate at which customers patronize the organization’s goods and services, especially where there are other competitors. Companies that have existed long enough to understand the market should collapse that layer of trade partners by integrating their functions into that of the organization to save cost and have control of their product prices.

One way to avoid delay in product or service delivery is to do a detailed risk investigation, analysis and assessment; involving all imaginable aspects of the company’s logistics and supply chain. Companies could simulate real-life business scenarios to identify improvement methods which could serve as a precursor to system troubleshooting to eliminate bottlenecks.
Also, substandard inventory and logistics management from internal factors like inefficient maintenance culture may lead to machine breakdown. Such avoidable scenarios are detrimental; they should not be.

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Ambiguity and duplication in the supply chain cost the organization more. Organizations should simplify their supply chain structure, drivers, and participants; to create room for easy management, monitoring, and control. Also, real-time data and information should be integrated into the supply chain system so that organizations can synchronize data and information from its constituent departments, sections, and locations.
Resources should be beneficially put to use into alternative sources of revenue instead of over-producing and having to face a higher cost of storage, spoilage, and idle capital.

It might be tough to handle employee sabotage in your supply chain because you cannot be everywhere at the same time. Technology can reduce this drastically, with cameras, automation, and tracking systems. However, those may not be able to eliminate occasions of diversion. A comprehensive approach is sacrosanct; involving policies that guide work ethics and operations. The installation of security control systems in hard and soft architectures is also a good idea to control waste and theft.
Again, employees with criminal records should not be employed in the first place to avoid the chances of having such situations.


The volume of transactions should determine the level of technological advancement in your firm. When the number of transactions becomes a burden to the handler, heightening the chances of a mistake in quantification; it is time to automate. To ensure accuracy, transparency and information sharing it better to reduce reliance on manual systems. With automated systems in your supply chain, you can make an informed decision using real-time information. Even though there will still be some level of human interaction; it won’t be significant enough to affect the firm.

Generally, when you work with partners that have the same vision and drive; automate your systems, close up gaps that could emanate from customer preferences or intermediaries’ irregularities. Reduce bottlenecks from processes and facilities in your supply chain you will be able to save unimaginable costs in your business.

Finally, eliminate incompetent service providers from your value chain. Always perform a comprehensive analysis of your entire supply chain from product or service selection, through quantification, inventory management, distribution and, quality assurance; to identify areas for learning and improvement. If you ensure a steady balance within your supply chain drivers-inventory, transportation, information, location, production, sourcing and pricing; your business will flourish.

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