Supply chains of modern organizations are complex and increasingly dynamic. It is influenced by constant changes to suppliers and industries, raw materials and commodities, and within the markets themselves. Though the ERP systems used by most companies are great management tools, they are mostly blind to this external data. Their “inside-out” approach can leave companies flat-footed when planning and executing competitive supply chain strategies. Moreover, with purchasing professionals asked to deliver more within a limited span of time, procurement market intelligence is gradually taking increased strategic importance in most companies. An efficient procurement market intelligence strategy can help companies to effectively overcome sourcing challenges and successfully mitigate procurement risk. That’s not all; here are five ways in which procurement market intelligence will help companies step up their performance:
Even though a company’s procurement, supply chain, and inventory facilities are at the peak of its efficiency, they can get caught off guard by a sudden change in a supplier’s business, management, or operations. With the help of procurement market intelligence, alerts can be set up to notify about changes in various suppliers’ businesses in near real-time, giving an early warning to disruptions that might require a fast reaction or an alternative solution. Companies can also use this information to arrange for ‘back-up’ suppliers, depending on the requirement. The ability to react quickly aids companies in maintaining consistency in the supply chain and increases reliability across operations.