Let’s first define supply chain management. It is the process of controlling the transportation of goods from the supplier to the business. It also includes communication between suppliers and businesses about the goods in transit. Three challenges are currently facing supply chain management in Canada:
The weather in Canada can be a bit unpredictable at times. Out of nowhere, snowstorms can happen. When that occurs, the roads become impassable. Such conditions affect the supply of goods from the producer to the customer. Sometimes, heavy rains also happen, impairing visibility on the roads.
2. Greenhouse Gas Emissions Regulations
The Canadian government wants to reduce the country’s carbon footprint to zero by 2050. To achieve this goal, the government has to regulate Canadian factories. The result has been inconsistent production by manufacturers.
3. International Tariffs
The other challenge facing the Canadian supply chain is the high cost of imports and exports. Ever since the Trump administration took power, they have focused on protecting American businesses from international competition. That means that Canadian businesses that want to sell their goods to American firms have to pay more tariffs. Imports have also become expensive, because the Canadian government has also decided to place high tariffs on goods from America.