Challenges

  • The difficulty of accessing accurate information in a timely manner has made operational and planning decisions highly inefficient.
    Accurate, accessible and timely information leads to coordination in various supply chain activities as well as accurate and efficient planning in various fields such as demand planning, production, procurement and planning of material needs and transportation. Information is also widely used in strategic planning, whose aspirations in a supply chain include development into new areas and markets, creating new facilities, and achieving optimal market success.
    Cost of
    In the traditional supply chain, the cost of the product is high, which reduces the competitiveness of companies in the global market, including the reasons for the higher cost of traditional production methods, high inventory costs, supply chain length, raw material prices, for small enterprises and The average of these problems is twofold, because in addition to the mentioned problems, they face other problems with more severity, such as shipping costs, low orders, lack of benefit from the economic scale, and so on. Low cost greatly increases the competitiveness of companies in global markets.
    Demand fluctuations
    In general, the farther companies are in terms of delivery time from the end customer, the greater the demand change. This effect leads to inefficiency in the supply chain as it increases the cost of supplying materials and reduces competitiveness.
    Among the adverse effects of the whip effect are the following:
    – Increase production costs
    – Increase inventory costs
    – Increase transportation costs
    – Decreased level of service
    Destroying relationships between members of the supply chain
    Credit period
    The high credit period during Zanhireh, in the leather and fashion industry, is about 12 months, while the credit period in most countries of the world is generally between one to four months. The issues mentioned indicate that the fashion industry is flawed and inefficient in terms of turnover, and measures should be taken to improve the turnover of the industry.
    Improving the financial flow and period of credit can increase the liquidity of the chain components and thus the development of the chain components, which ultimately increases the competitiveness of the supply chain.
    Reverse and green chain
    The reverse chain is one of the most important and vital aspects of any business and includes the construction, distribution of services and support for any type of product. In the current age of business, where the life cycle of products is getting shorter every day, there is more emphasis on managing the return, deformation and re-storage of finished goods. Green rules related to the disposal and disposal of waste also force managers to take a closer look at the reverse logistics process.
    The term sustainable supply chain or green refers to the integration of sustainable environmental processes into a traditional supply chain. This can include processes such as material selection and purchase, product preparation, product design, product production and assembly, product distribution, and end-of-life management. Undoubtedly, reducing pollution and waste management is the main goal of the green supply chain.

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