Sourcing and supply chain management go hand in hand.
Successful supply chain management is the backbone behind most successful businesses. If we had any doubt, the last three years made it clear.
Here are four pointers to help you ensure the success of your supply chain and how you can manage your relationships for success:
1. Leverage New Technologies
Today’s supply chain industry is brimming with new technologies and it has never been easier to get the most out of your supply chain using tools such as:
I. Artificial intelligence and predictive analytics to aid in inventory forecasting.
II. Procurement applications such as SAP Ariba SLP. This aids in quality control, supplier scorecards, supplier management and cost savings during procurement.
III. Digital supply chain twins, which improve transparency and decision-making in the supply chain.
2. Constant Evaluation of Sourcing Strategies and Suppliers
The focal point of any supply chain management is sourcing. If done incorrectly, it could spell the end of many supply chains.
Take, for example, this Gartner study.
74% of companies that constantly reviewed and developed their sourcing strategies increased their productivity and savings significantly.
It really is a no-brainer.
To get the most out of your sourcing, figure out which strategies work best for your supply chain and focus on them. You should concentrate on the suppliers’ credibility, capacity, and shared goals.
3. Employee Development
Employees, like other aspects of the business, make significant contributions to supply chain management. In a nutshell, they are the foundation of any organization.
It only makes sense to invest in their advancement. Especially if you want your supply chain management to succeed.
When it comes to training their employees, most businesses are afraid. They are concerned that they will leave and join their competitors. It’s understandable.
But wouldn’t it be more dangerous not to train them? And then watch them wreak havoc on the supply chain and overall business objectives?
Employee competencies are improved through training and development.
4. Enjoy the Competition
Competition is the backbone of any thriving industry. To see success in your supply chain, you must learn to enjoy the competition.
Why? The simple answer is competition breeds innovation. And innovation is the secret weapon of any successful business.
With competition, you can isolate a competitive edge, allowing you to better cater to your customer’s needs.
It also has benefits like improved customer service and constant business development.
What are the key issues you encounter in your supply chain organization?
For procurement and supply chain management consultations from the global leaders in Ariba solutions please visit us at www.premikati.com.