Ongoing Supply Chain Issues

The best supply chain management software solutions will help distributors to address the ongoing supply chain issues, including:

• Shortage of Goods: There are currently many supply chain issues including: manufacturer shutdowns, port congestion, containers stuck in the system, geopolitical conflicts and inability to find skilled employees. These issues have led to widespread shortages of goods.
• Soaring inflation: Massive government spending following the Coronavirus pandemic and lockdowns, unprecedented migration and supply chain disruptions, have led to huge inflationary problems worldwide.
• Supply Chain Blockages: Supply chain disruptions and blockages have led to cancellations, production shut downs and economic stress as needed products have been unavailable.
• Unpredictable Pricing: Because of the unavailability of goods, rampant inflation and supply chain uncertainties, prices are very volatile – this in turn leads to market uncertainties.

Capabilities of Supply Chain Software Solutions

To address ongoing supply chain issues, supply chain management software solutions should let distributors take steps to strengthen their businesses. Some of these key initiatives to look for include:

• Ability to Diversify Suppliers: Supply chain management software solutions should provide distributors with easy ways to reduce their reliance on specific suppliers or geographies. They should look for solutions that can allow them to quickly send Requests for Quotes to multiple suppliers at the same time to optimize availability, price, terms and broaden supplier base.
• Keep Track of Suppliers’ Performance: In conjunction with broadening their supplier bases, supply chain software should give distributors the tools to evaluate and track suppliers’ performance.
• Real-Time Tracking: Supply chain management software should provide full tracking of goods from the supplier’s warehouse through the supply chain to delivery. This allows distributors to react to unforeseen problems and take remedial actions.
• Demand planning: Supply chain management software solutions should have strong data analytics capabilities. Being able to create forecasts of demand and analyze the data to create what-if scenarios allows distributors to react to changes quickly and adjust their purchases.
• Inventory Management: Supply chain software must have strong inventory management capabilities. The best way to cope with supply chain uncertainties is to manage inventory needs carefully.

Implementing Supply Chain Software

Implementing a solution that delivers the best supply chain management software capabilities will help distributors mitigate the effects of current supply chain issues. Implementing the right solution will help distributors become more agile and more responsive to changing conditions and will help retain customers through the current supply chain crises. In addition, the right solution will help distributors become more resilient and better positioned for future supply chain shocks.