Question

Explain the major supply chain challenges and issues faced by P&G currently and in the future

Answer 1

Answer:

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Explanation:

5. Explain the major supply chain challenges and issues faced by P&G currently and in the future? Customer service- Supply chain management is all about providing the right product inthe right quantity to the right place and the right time. Seems simple, but can getcomplicated...quickly.Cost control- Operating costs are under extreme pressure by rising energy/fuel andfreight costs, greater number of global customers, technology, increasing labor rates andnew regulations and rising commodity prices.Supplier/partner relationship management - It is important to create, understand andfollow mutually agreed upon standards to better understand current performance andopportunities for improvement. Having two different methods for measuring andcommunicating performance and results wastes time and effort. Trust the system that wasput in place for consistent results and better supplier/partner relationships.Order Changes and Cancellations: This happens at the end of the supply chain, and sendsreverberations throughout. The retailer is stuck with excess product, the wholesaler deals withfewer orders and backing up inventory, and every other supplier feels the waves. Plus,consumer whim dictates changes and cancellations, meaning there’s little way to predict it, andevery case could have different reasoning.Workers Unavailable: Companies provide quotes and production orders based on expectedcapacity, and when workers are ill or otherwise unexpectedly absent, that can dramaticallyaffect a supplier’s capability. This scenario is especially true in the age of automation, wherefewer workers are required but each is responsible for overseeing the smooth production ofmany more units. Production Facility Failure: Like with workers, unexpected mechanical or software problemswith manufacturing plants can devastate a supply chain, especially if it is operating on just-in-time. Late Delivery of Materials: This logistical problem can stem from a number of transportationissues, from as mundane as a traffic collision to as severe as genuine theft and piracy,depending on which regions the supply chain serves.Suppliers’ Conflicting Obligations: Independent suppliers all have one honest goal - make asmuch money as possible by taking on as many orders as possible. In non-integrated chains, thismeans they might have some tolerance for overlap between different customers’ orders. Shouldone customer decide to increase production, another suddenly might be out of a productionfacility because the supplier overcommitted.