Here are Some Challenges Which you Usually Face in SCM
ANUJ KUMAR SHRIVASTAVA, Premium Member
I believe the main challenge in SCM is to maintain the flows i.e., the material, cash and information flow:
1. MATERIAL FLOW: This is basically dependent on the 5Rs of SCM
where selecting of Vendors, deciding terms and negotiation is really a challenge as you need to ensure that this is not hampered as it would directly affect the production.
2. CASH FLOW: This the biggest challenge in SCM as there is a continues conflicts between Finance and Procurement. As a SCM manager you need to understand and ensure that your payment terms, credit period and cash flowing are in synch with the needs of the finance department.
3. INFORMATION FLOW: This is considered a challenge as in the process all the departments would try to pass the ball to the other's court. The logistics, procurement, warehousing, inventory need to be transparent enough not only internally in logistics but also with production, sales and marketing.
Also the competition analysis and cash flow analysis in SCM continuously need proper information which is an additional challenge.