CHSCM 3.0 - Unit 1 - SCM in the Humanitarian World

However, there are many things that combine and interact to make supply chain management a
challenging task. In this section, we explore factors that pose challenges to supply chain managers.
We will cover:
• Complexity
• Synchronization
• Integration
• Visibility
• Optimization
• Compressing time
• Variability & uncertainty
Having explored these challenges, we will conclude by considering the theme that links and bonds
all the supply chain activities and participants together.
There are many causes of complexity in a supply chain. Often, the characteristics of the products
being moved create complexity, requiring that specific activities be undertaken. The supply chain
network can also create complexity by reducing flexibility.
The consequences of this complexity can be significant.
The first consequence of complexity is higher inventory levels. As complexity increases, inventory is
added at more locations within the supply chain. This inventory gradually begins to block the supply
chain, slowing progress through it, and resulting in longer lead times. In turn, these longer lead
times can lead to a further increase in inventory levels.
When product takes a long time to flow through the supply chain it deteriorates in quality, resulting
in a poorer level of service to the beneficiary. Despite the high level of inventory, product availability
is often poor because the inventory held is the wrong product.
Storing and handling extra inventory will result in additional cost. Although there are many factors
that contribute to complexity, there are perhaps two dominant aspects that highlight all of them.