1. True value of the products used is unknown.
2.Lack of transparency in modern supply chains. Impossible to pinpoint exactly
where that defective piece came from and who was responsible for it.
The problem with running a complex supply chain is that you will need to trust all the participants to do their job. You need to trust them to deliver quality while following standard safety standards. However, human beings are not really that trustworthy and are prone to corruption.
As companies become big enough to have international influence or it start operating on an international scale, globalization opens up several challenges to supply chain management. Many companies need to run their supply chain through multiple countries to procure different parts of their products. However, this introduces complications. Suppliers can be in vastly different geographic locations which makes it difficult to co-ordinate and collaborate. In other words, it is difficult to assess and manage performance.