6 Ways Companies Can Overcome Supply Chain Disruptions
Enhance Your Data with AI (Artificial Intelligence)
Cloud-based procurement solutions give procurement leaders greater visibility into the supply chain. High-quality data increases flexibility, allowing you to increase the scope of your supplier options.
With AI handling the heavy lifting, you're free to focus on deriving actionable insights from the data.
Be Proactive Instead of Reactive
Maintaining short inventories can negatively affect the P&L, so companies need to increase buffer stock. Procurement leaders should be able to quickly refine their inventory strategy in an unexpected supply shortage.
AI-enriched spend data from a best-in-class spend analytics platform will allow you to anticipate any supply disruptions.
Develop a Risk Management Plan
Leaders must prepare their teams for a crisis event. Everyone should know their responsibilities and have a clear action plan. The plan should include priorities such as sourcing alternatives,
emergency orders or requests. This plan should be updated consistently to account for changes in business operations. It should take into account the evolving risks that your organization faces.
Improve and Sustain Key Supplier Relationships
Collaborate with your suppliers to understand their level of flexibility when it comes to production and purchase order fulfillment. Companies that maintain strong relationships
with their suppliers are better positioned to handle supply chain disruptions. Supplier scorecards can be a great way to keep track of vendor management and performance.
Identify Secondary Suppliers
It's important to maintain a clear line of sight to suppliers and their vulnerabilities. It's also important to identify and cultivate relationships with secondary suppliers who can provide alternative sources.
This allows you to maintain continuity of your operations if your primary supplier encounters a disruption. Remember: no two supply chains are the same.
Partner with a Marketplace Solution
A good marketplace solution allows companies to find new supply sources quickly and conveniently should first and second-tier suppliers fall short.
While it's critical to maintain close relationships with suppliers, it's equally important to understand their capacity for delivering goods at the highest levels of quality.