Supply chains of the future are moving from one-to-one relationships to collaborative networks in order to exchange mutually beneficial information with supply chain stakeholders. A collaborative network allows organizations to come together to improve processes and provide enhanced customer service.
Uses of Collaborative Networks in Supply Chain
For example, information can be accessed from a collaborative network of transportation carriers to provide information and costs for a particular shipping route in order to make better shipping decisions. This could also allow purchasers to combine shipments with other companies using the same routes that have extra capacity.
Several software applications and platforms are available that enable collaboration between buyers and sellers and that provide visibility into value supply chains. Secure networks allow buyers and suppliers to connect through electronic communication at every point of the procurement process.
In addition to communication, technology, and digitization capabilities exist from sourcing to payment to performance measurement. Examples include using cost analytics to select optimal suppliers, tracking movement of goods through the use of control towers, and intelligent content extraction, such as optical character recognition (OCR) to read and capture data from documents such as purchase orders and invoices.