Supply chain issues have been on the rise since the pandemic and continue to plague many businesses. Companies often work with global suppliers, presenting issues that go beyond material and labor shortages. They must also be aware of compliance laws that may apply, handle cultural barriers, and deal with geopolitical events that may affect relations.

Handling these issues is difficult, but a smart strategy will help organizations overcome complex supply network challenges and provide seamless operations.

How to Overcome Common Global Supply Chain Issues

Find the Right Suppliers

Companies must vet suppliers carefully before agreeing to a partnership. They must check their financial stability, service history, and compliance records. Supplier requirements vary among companies, but most will look for vendors that offer high-quality standards, a positive reputation, reasonable pricing, optimal value, responsive customer service, and an effective risk management policy.

Diversify Suppliers

Organizations should avoid putting their eggs in one basket when choosing suppliers. They should partner with diverse suppliers worldwide. This strategy allows them to pivot to other vendors if a primary vendor deals with shortages due to global events and other incidents.

Create Standard Expectations

Businesses are wise to partner with various vendors, but they may face issues with inconsistent quality. One vendor’s items may not be as durable as another vendor’s goods, or they may vary in a way that could alienate customers.

Organizations can avoid this issue by setting standard expectations for the products they order. They must make suppliers aware of these expectations to ensure they receive quality products, and leaders must enforce these to avoid disappointing clients.

Align with Local Compliance

Compliance is an issue in global trading. Laws can be complex, but organizations that don’t follow them may face steep fines and penalties.

Companies should partner with an expert who can advise them on local laws and make them aware of any changes. They should also ensure employees are aware of compliance laws so they can check items being received and shipped and confirm they are up to code.

Continuous Risk Management

Supply chain risk management (SCRM) identifies, assesses, and reduces supply chain risks. Common risks include financial risks due to a loss of goods, data, or efficiency, environmental risks that can lead to a lack of resources and cyber risks that can compromise sensitive information and disrupt virtual communication.

Organizations must devise systems that keep their company safe. Beefing up cybersecurity is always a good option. They must also work out systems to ensure their finances are protected. The ability to pivot from one supplier to another helps them avoid risks regarding a specific vendor or area.

Leverage Technology

Technology plays an essential role in any good supply chain management strategy. Organizations may consider integrating the following:

• AI: Artificial Intelligence can generate insights to optimize supply chain management.
• Internet of Things: IoT provides real-time tracking and monitoring.
• Automation: Automating systems increases efficiency.
• Machine Learning: This branch of AI develops algorithms that can improve supply chain management standards.
• Quality Management Systems: QMS ensures quality throughout the supply chain.

Proactive Quality Control

Organizations must prioritize quality control. Each shipped item should be assessed to ensure it meets quality standards. A feedback loop should be established so issues can be addressed immediately—before subpar items hit the market or the assembly line.

Build Strong Relationships

Leaders should build strong relationships with supply chain partners. They should check in regularly and remain friendly. This approach ensures leaders are aware of sales, discounts, and potential disruptions.

Communicating globally can be challenging, considering language barriers and varying time zones. However, technology can address these challenges, leading to smoother processes.

Source Ethically

Organizations have a responsibility to ensure all business is conducted ethically, including business with their suppliers. They must partner with suppliers that source responsibly and follow Fair Labor laws. To maintain a stellar reputation in your industry, seek out vendors that hold certifications ISO 14001 for environmental management and ISO 45001 for occupational health and safety.

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