This article is about Supply Chain Management, a topic that is so important, and it is a topic that is still being figured out. For example, why is the supply chain breaking down? Take a look to know more about why supply chain shortages are happening. 

What is a Supply Chain Management? 

The supply chain is an essential part of modern business. It is the mechanism that ensures companies can produce the products they sell and provide these products to the people who need them. But what is the supply chain exactly? 

The supply chain is a series of processes businesses go through to research, produce and distribute their products to stores and customers. 

The supply chain is a major part of any business because it helps large companies keep costs low and manage their resources more effectively. However, the supply chain is not perfect. In fact, experts have identified a number of obstacles that have emerged in the supply chain that can have a negative impact on a company’s bottom line.

Why is the Supply Chain Breaking Down?

As the economy continues to improve, one of the industries that have not been affected by the downturn in the manufacturing sector. In fact, it has been on a steady incline for years. So why does it seem like the supply chain is breaking down? 

According to a recent report from the Commerce Department, orders for manufactured goods increased by $13.5 billion in April, which is the biggest increase since June last year. This increase means that the inventory levels have increased, which is good for manufacturers but bad for the supply chain. 

Why? Because it can lead to the buildup of inventory, which can lead to a shortage of inventory in the future. And with a shortage of inventory come major issues for the supply chain.

A labor shortage is a problem for businesses and the economy. It’s a problem for businesses because it drives up the cost of labor. It’s a problem for the economy because it slows growth. And it’s a problem for individual companies. 

There are lots of reasons why businesses are having a hard time finding the workers they need. Some of these reasons are structural. In other words, they’re part of how the economy changes. The most important structural reason is that many of the fastest-growing occupations are highly technical jobs. 

For example, the number of Americans employed as computer programmers has more than doubled since 1990. At the same time, the number of people employed as manufacturing workers has fallen by a third. This shift toward a more technology-based economy has increased the demand for workers with technical skills and reduced the demand for people whose jobs require manual labor.

This has made it difficult for the supply chain management to keep up and go back to the pre-pandemic production rates. Other factors contributing to the supply chain shortages are the structural factors and shift in demand among the customers.

By Manali

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