Ensuring a robust Supply Chain – Part 2
In our previous post, we explored how procurement professionals can ensure a robust supply chain to combat disruption. Today let’s see, how technology silently plays an important role in ensuring a robust supply chain:
- Centralized data – Sourcing tools provide a centralized supplier data repository making it easier to screen, analyze suppliers. Additionally, the selection process is more transparent & objective with sourcing managers being able to select suppliers on not just the low price parameter but also on basis of other key metrics like – services delivered, financial stability, productivity, network alliances and so on.
- Ease of choosing/scoring suppliers – Supplier Management solutions allow supplier segmentation strategies to be put in place with various standard or customized KPIs and performance dashboards. Additionally, organizations can develop and manage supplier development programs to aid suppliers work towards a good score.
- Common platform – As all the stakeholders are on a common platform, an increased level of transparency & communication is observed. Overall, the health of supply chain can be monitored well.
- Risk Vane – Like how weather vanes help us predict the weather, embracing technology helps us monitor parameters of risk and allows us to buy time for precaution. For example, Supplier Relationship Management or Contract Management help us monitor & implement stringent clauses like “price variation”.
While an organization may end up with a comprehensive set of confusing or conflicting metrics, procurement professionals should ensure to measure what matters. Instead of a large chunk of metrics, try & sustain a balance between a mix of KPIs.
What steps do you ensure for a robust supply chain? Share your views in comments below.
In our whitepaper, Supply Chain Resilience in the face of disruption, we discuss how the Thailand political crisis had an impact on trade in Germany & how organizations can seal their supply chain to be more robust in the need of the hour.