Top 4 Causes of Loss in the Supply Chain
It’s estimated that businesses have been sustaining losses amounting to roughly $225 billion annually due to a lack of visibility into and control over their supply chain and logistics operations. More than 50% of these losses have been attributed to human error.
Has your company experienced losses due to human error or any of the following reasons?
1. Spoilage of goods as a result of incorrect temperature and humidity settings. This mostly happens due to errors in setting transit and storage refrigeration temperature, refrigeration unit malfunction, a lack of temperature control facility, or inadequate packing or storage.
2. Damaged consignments as a result of shock, vibration, and tilt. Packages can suffer damage due to poor roads and route selection, inadequate packaging, unstable stacking of goods, and rough handling of goods during loading and unloading.
3. Process inefficiency as a result of late or failed pick-up. It is common for pick-ups to be rescheduled and delayed due to goods and document misplacement, incorrect scanning, poor planning, miscommunication, incompatible IT systems, missing or incorrect documents, bad weather conditions, and traffic delays.
4. Missing goods as a result of cargo theft. Inadequate theft protection can result in pilferage.