Supply chain disruption- 94% of Fortune 1000 companies saw supply chain disruption in the wake of COVID- 19. Some issues were inevitable; after all, this deadly virus took the whole world by surprise.
Yet the damage would be less crippling if company supply chain management was
better equipped for the 21 st century. It’s shocking almost a fifth of organisations still rely on fax machines and paper for
procurement. That’s a huge weakness, especially when the world’s workforce is suddenly forced to work remotely.
Companies should take a hard look at company supplier management, seeing where solid data and digital tools could improve resiliency. After all, modern supply chain management practices give companies an edge when the world goes belly up.
Here are a few advantages:
Mitigate risk: Companies need a diverse group of suppliers and backup suppliers. Research from the Institute for Supply Management found almost half of US supply chain managers don’t have a plan in place to address supply chain disruption from China.
That’s just asking for trouble. No one needs the stress of scouting, selecting, and on-boarding new suppliers when global pressure mounts. The right data helps you build diversity into your supply chain, spot limitations, and discover potential disruptions earlier. That cuts your reaction time, ultimately making you far more resilient.
Control spending: More than ever, companies need to keep spending under control. And one of the best ways is to make procurement easy for internal staff.
Some companies use digital “chatbots” that steer staff to preferred suppliers and relevant contracts already in place. This keeps off-contract spending to a minimum. And as an added bonus, it helps inform new policies and supplier choice. It’s also easier to control spending when policies are flexible enough to match changing business environments.