Innovative technologies, like the Cloud, transform the way businesses use technology and operate globally. It has a huge impact on the B2B integration strategy of your business in order to run successfully in this new and dynamic setting.
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4 Things You Need to Know (and Do) about Supply Chain Integration
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4 Things You Need to Know
(and Do) about Supply Chain
Integration
Innovative technologies, like the Cloud, transform the way
businesses use technology and operate globally. It has a huge
impact on the B2B integration strategy of your business in
order to run successfully in this new and dynamic setting.
Under the pressure to produce better results and contain costs,
you need transformation more than improvement. This means
you need to embrace the methods and processes that will
make your organization the best. You must know these supply
chain fundamentals in order to achieve your desired level of
supply chain excellence.
Supply Chain Visibility is the key improvement objective. SCV
improves and strengthens the supply chain by making
information readily available to your customers and partners. It
promotes quick response by allowing you to take action and
redirect supply or reshape demand by tracking the transfer of
parts or products from the manufacturer to its final destination.
In order to gain SVC, you need to open all lines of
communication inside and outside of your company, trust your
partners, invest in technology, and know your customers.
Cost reduction is highly important. The purchasing department
is the heart of an effective supply chain. It starts all ordering
documents. You can keep your supply chin expenses by
managing every phase of the supply process.
How will you do that? Improve space utilization, move your
supplies faster and streamline your ordering process. Most
importantly, improve your communication among your suppliers,
partners and customers. Reduce costs by working
collaboratively in the supply chain.
Risk management and awareness are key initiatives. Supply
chain risk is a major threat to business continuity. It can reduce
your revenue and market share, or threaten production and
distribution. To manage such risks, you need to strengthen your
delivery mechanisms and supply chain visibility. You need to
look at the whole, not just the parts. Supply chain risks are
systemic; they can easily affect the entire supply chain and
your whole organization. You need to review your current
operating models, integrate risk management into all operations
and improve risk monitoring and reporting.
Collaboration should be adopted. To improve profitability, you
need to align you’re your supply chain operations, sales and
marketing, IT, and product management. You need to get
everyone inside and outside your business to coordinate. It is
important to have collaboration and information sharing in your
organization to encourage your customers and suppliers to
work proactively.