How to Improve Supply Chain Operations

Supply chains play a crucial role in organizations across virtually every industry. Nearly 80% of supply chain professionals expect the current supply chain disruptions to continue for up to two years, according to a 2024 survey conducted by Maersk. Understanding how to improve supply chain operations can help organizations operate more efficiently and effectively.

To learn more, check out the infographic created by App State Online’s Bachelor of Science in Business Administration (BSBA) in Supply Chain Management program.

Supply Chain Management Overview

Before considering possible supply chain management (SCM) improvements, it can be helpful to review the basics.

5 Key Aspects of SCM

The five stages of SCM cover the entire product life cycle, from idea to delivery, including a final stage that some businesses forget to plan for.

Planning: Forecasting and projecting to align product demand with manufacturing output
Sourcing: Identifying third parties that can reliably deliver the raw materials to produce the product
Manufacturing: Producing, testing, packaging and shipping the product
Delivery and logistics: Managing inventory, using automation and often partnering with third-party logistics companies to deliver the product to the customer
Returns and reverse logistics: Receiving, cataloging and processing returned products

6 SCM Models

Supply chains aren’t one size fits all. Different industries and companies may benefit from different supply chain models.

Continuous Flow Model

A traditional approach frequently used in well-established industries, the continuous flow model works best with predictable product lines and customer demand.

Delivers efficiency, but is less responsive to sudden changes in demand

Agile Model

When demand is more volatile or product customization is important, the agile model provides flexibility for companies with shifting SCM needs.

Highly responsive to change, but can be more expensive

Fast Chain Model

Companies that rely on trends use the fast chain model to quickly ramp up production and delivery of products with short life cycles.

Adaptable and responsive, but costs more

Flexible Model

If a company faces high volume during one part of the year and low volume in others, the flexible model allows the supply chain manager to adjust as needed.

Works well with changing demand, but requires careful management

Efficient Model

In industries with tight margins that rely on carefully managed inventory and equipment use, the efficient model helps keep costs down.

Lowers costs and waste, but can be rigid

Custom Model

When the other models aren’t a good fit, customization can help companies in specialized industries develop a model that works.

Provides differentiation and greater customer satisfaction, but can be costly and complicated

Roadblocks

A host of problems can cause supply chain disruptions. Here are three of the most cited roadblocks.

Lack of Visibility

Supply chain visibility refers to a company’s ability to “see” items — from raw materials to finished products — as they move through the chain. Visibility may entail tracking in-house products through final delivery or those assembled in other countries.

Solution: Technology can deliver timely data to help producers avoid and respond to problems. In fact, 60% of companies surveyed by Maersk in 2024 said they were investing in technology to improve their visibility and agility.

Forecasting Failures

Missteps in SCM forecasting can be compounded across all stages of the process. Changes in consumer demand, trends and tastes can leave companies with too much or not enough inventory.

Solution: Artificial intelligence (AI), analytics, machine learning and other forecasting tools can help businesses more accurately predict demand and respond quickly to shifts.

Geopolitical Upheaval

Political instability, territorial clashes, labor strikes and tariffs can wreak havoc on the best-planned supply chains. Nearly all companies say they’ll adjust their SCM approaches to adapt to U.S. trade protocols, according to a 2025 PwC survey.

Solution: Technologies such as smart devices and AI tools can improve companies’ forecasting, decrease response times and enhance supply chain resilience.

Improving Supply Chain Operations

Several steps can build resilience, adaptability and efficiency into an organization’s supply chain operations:

Hire and train SCM talent. SCM leaders can engage with university SCM programs and provide better training for employees.
Improve vendor and other third-party relationships. SCM professionals can build strong relationships with key suppliers and maintain mutually beneficial collaborations.
Recognize potential bottlenecks. Managers can visualize all the ways shipments could be delayed and find potential alternate routes or carriers to be used when needed.
Leverage technology. In addition to AI tools and smart devices, supply chain managers can use comprehensive enterprise resource planning (ERP) systems, automation, analytics and digitized documents to improve their supply chain’s efficiency and visibility.
Test supply chains. SCM professionals can plan ahead by determining how their supply chains are likely to react to problems and then develop contingencies.

Most importantly, supply chain managers need to remember that supply chain optimization isn’t a one-time task, but requires ongoing effort. Continuous evaluation, contingency planning and testing are key to maintaining efficient operations.

Learn How to Optimize Supply Chains

With so many potential problems, it’s clear that learning how to improve supply chain operations is a valuable exercise for SCM professionals and companies interested in improving their efficiency and profits.

Sources

Cart.com, “10 Common Supply Chain Management Problems (and Solutions) for Your Business”

Compliance Chain, “What Are the Five Categories of the Supply Chain Process?”

Descartes, How Bad Is the Supply Chain and Logistics Workforce Challenge?

Inbound Logistics, 6 Types of Supply Chain: Their Roles Defined

Investopedia, “Understanding Supply Chain Management (SCM) and Its Importance”

Jabil, The Challenges of SCM and How to Overcome Them in 2025

JPMorgan, 4 Tips to Strengthen Your Supply Chain Management

Maersk, Be Ready to Turn Uncertainty Into Opportunity

Microsoft, What Is Supply Chain Management? (SCM)

Oracle NetSuite, “15 Supply Chain Best Practices to Adopt in 2025”

Oracle NetSuite, “What Is Supply Chain Visibility (SCV)? Definition & Examples”