▶TOP 10 • Supply Chain Challenges

SUPPLY CHAIN
PROBLEMS
10 SUPPLY CHAIN CHALLENGES

chainGO
Global supply chain management
continues to operate in such a
traditional way that it has a number of
important complications for business.
On the other hand, new technological
solutions are increasingly being
provided to solve these. Here, we will
see examples below.
The following challenges are shaped
by the problems and consequences
arising from these problems that
supply chains face today.
SUPPLY CHAIN PROBLEMS 10 SUPPLY CHAIN CHALLENGES

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Supply Chain Low
Visibility
1
PROBLEM
Up to 27 agents may be involved between the importer and the exporter, making it
extremely complex to achieve traceability to ensure the origin of the goods and their
condition for each point they pass through.
up to 27 agents involved
in the process

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Documentation
inefficiency
2
PROBLEM
20 documents/ container
(average)
Bureaucracy is one of the factors that make global supply
chain management less efficient.
If there are up to 27 agents involved in the process, each of
them is responsible for completing, validating and signing
certain documents. These documents add up to an
average of 20 per container.
This also has a negative effect from an environmental
point of view.

Communication
inefficiency
3
PROBLEM
Communication by email
and phone calls
The fact that there are so many agents involved in the same process also affects communication
between them as they continue to communicate through emails and phone calls.
In addition, there is another problem with communication and that is a technological problem. Since
each of these agents has a different documentation and communication system their are problems
with interoperability as technological solutions don't communicate with each other.

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Fraud risk
With such poor supply chain visibility, there
is a significant risk of fraud.
In fact, in 2016, global abandonment and
theft of goods exceeded $30,000, with an
average value of each theft of $190,000.
4
PROBLEM
30$Bill. stolen or abandoned
annual merchandise (average)

Human errors
Another common problem in complex supply chains is human error, since, as it is a
manual process that depends on so many different actors, errors are quite likely to
occur.
Although any small error can mean the risk of major disruptions in the process.
5
PROBLEM
chainGO

Extra costs
and
penalties
All the above problems lead to multiple
consequences, one of them being extra
costs and penalties, which end up
accounting for 20% of the total logistics
costs of a freight transport process.
The most common additional costs due to
delays in the transport of cargo, and
especially in maritime transport, are those
related to occupations, delays and storage.
6
CONSEQUENCE
20% of total logistics costs
(average)

There are many reasons why delays can occur in the delivery
of goods to their final destination, such as the time it takes to
release the cargo and the inspections carried out by customs
once the cargo is released.
Obviously this means that the goods spend more time in the
terminal, resulting in costs of delay for the company paying
for the transport. These costs increase as the days go by.
The average delay of delivery of the goods is between 1 or 2
days, which means large increases in costs in addition to
other consequences associated with reputation or failure to
meet the deadline.
And this is something that is normally out of control of both
the exporting company and the importer. In addition there
are other external causes such as weather, technical problems
of the ship, natural disasters, etc.
Delays
7
CONSEQUENCE
chainGO
1-2 days (average)

From the above-mentioned delays, we get one
of the reasons why in many cases deadlines
are not met in the delivery of goods.
As we have said, in addition to a failure to meet
the delivery deadline, there are indirect
consequences such as loss of customers and
costs to an actors reputation.
And although normally any problem that
causes this is produced by a single agent, it
has negative consequences that fall on the
other actors involved in the supply chain.
8
CONSEQUENCE
Missing
Deadline
Possible loss of customers and
company image damaged

Sometimes there are cases where the
goods suffer some alteration during the
process.
For example, it can happen that a
container loses climate control.
Here the problem is not only the fact
that the goods can be damaged, but
that, having gone through so many
different agents, it is very difficult to
find the person responsible, due to the
poor traceability of the process.
9
CONSEQUENCE
Changes in
the state of
goods
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Loss of
cargo
Another frequent problem in freight
transportation is the loss of goods,
which in the last three years, only in
maritime transport, has meant an
average annual loss of 1,390
containers, according to the World
Shipping Council.
10
CONSEQUENCE
chainGO
1.390 annual loss
(average)

NEW SOLUTIONS
BLOCKCHAIN
TECHNOLOGY
Currently, the favorite solutions for companies with
complex supply chains are those based on
blockchain technology.
Since it has several features that allow to give solution
to all these problems. And in times of crisis, also
contribute greatly to improving the financial solvency
of the company.
These solutions are being used in large, well-known
companies as well as in SMEs, as they not only solve
the major challenges of global supply chain
management, but also represent a differential factor
with respect to competing compresses in the market.
Clicking here, you can see the 10 main benefits of
applying Blockchain to the supply chain.

chainGO
Discover the most innovatible blockchain logistics
software to handle all your cargo documentation
needs!
www.chaingotech.com
We develop and provide blockchain solutions
for supply chains.
contact@chaingotech.com @ChainGOTech ChainGO Tech
THEY HAVE ALREADY USED BLOCKCHAIN
WITH US FOR THEIR SUPPLY CHAINS

▶TOP 10 • Supply Chain Challenges

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▶TOP 10 • Supply Chain Challenges