Entrepreneurs face several challenges in SCM, including:
Cost Management: Balancing cost and quality is a perpetual challenge. Entrepreneurs must find ways to reduce costs without compromising on the quality of their products or services. Supplier Reliability: Dependence on a limited number of suppliers can be risky. Entrepreneurs need to ensure they have backup suppliers and diversify their supplier base to mitigate risks. Demand Forecasting: Accurately predicting consumer demand is difficult but crucial. Poor demand forecasting can lead to either excess inventory or stockouts, both of which are costly. Regulatory Compliance: Navigating the complex web of regulations related to imports, exports, and logistics can be challenging, especially for international business.