Tag: supply chain

supply chain risk management

Supply Chain Best Practices to Drive Business Success

The importance of supply chain management in today’s competitive market landscape cannot be undermined. With the expectations of both shareholders and consumers soaring, the collective capability, technology, resources, and scale of most supply chains have become insufficient.

Moreover, it can be said that the exponential increase in business complexities is one of the biggest challenges facing the supply chain. This surge in the complexity has been further fueled by challenges such as supply chain globalization, acquisition pace, new retail channels (i.e. omnichannel), regulations, and a rapid increase in the pace and complexity of new product introductions. This has forced companies to adopt supply chain best practices and renew their supply chain approach.

At SpendEdge, we understand that adopting supply chain best practices requires both knowledge and capabilities. Therefore, our team of experts has highlighted the supply chain best practices that companies can adopt to increase value creation across the supply chain.

Want to know how supply chain best practices can help you manage complexities? Get in touch with our experts and implement supply chain best practices for your organization. 

Supply chain best practices for companies

#1 Align supply chain responsibilities

Often, the decision-making power is divided among different people in organizations. This not only slows down the operations but also makes it difficult for companies to make quick decisions. Aligning supply chain responsibilities will ensure better supply chain management and greater efficiency for organizations.

#2 Utilize technologies

Companies integrate too many software to increase their efficiency without analyzing the needs of their organization. Instead, companies should analyze the efficacy of their processes that need improvement and then implement technologies that can address those needs. This is one of the supply chain best practices that can help companies to make better utilization of their supply chain.

#3 Devise strategic sourcing strategy

Strategic sourcing is imperative for supply management. It ensures the availability of supplies, lowers total cost, streamlines processes, and increases responsiveness to customers’ changing needs. Companies looking to implement supply chain best practices should focus on strategic sourcing rather than considering it the sole responsibility of the purchasing department.

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#4 Consider value over price

It is never advisable for companies to cut costs at every point of time, especially if they are aiming to achieve long term business goals. At times, they need to put value over price to retain their customers, keep business flowing, and establish themselves as a reliable supply chain partner. This requires companies to implement supply chain best practices and achieve better profits in the long run.

#5 Better inventory management

Inventory management is one of the supply chain best practices that companies are intending to improve upon in the years to come. It helps companies to substantially improve the bottom line and minimize their working capital. Even the top-notch companies are paying attention to inventory at the highest levels as it could represent over 50% of the cost of an item.

#6 Taking social initiatives

Reducing a supply chain’s carbon footprint is no more a choice for companies. It is one of those supply chain best practices that necessarily needs to be practiced. The reason being, buyers and consumers take it into consideration while choosing products or services. Any company not having productive social responsibility programs risks criticism from one or the other sources.

Implementing supply chain best practices is pivotal to increase the efficiency of the global supply chain. To know how your organization can benefit from these practices, request a free demo from our experts now!

 

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supplier management

Six Effective Ways to Build Better Supplier Relationship Management

What is supplier management process? 

Most organization rely on third-party vendors or suppliers for the purchase of goods and services. Therefore, how an organization engages, manages, and communicates with their suppliers and builds supplier relationships is critical to their overall success. Supplier relationship management refers to the process systematic assessment of the suppliers’ assets and capabilities in view of the organizations overall business strategy. This determines activities to engage in with different suppliers, and planning and executing of all interactions with suppliers to maximize the value realized through those interactions. Supplier relationship management seeks to develop a two-way, mutually beneficial relationships with the strategic supply partners of a company. Supplier relationship management helps build better supplier relationships and thereby achieve greater levels of innovation and competitive advantage than could be achieved by operating independently or through a traditional, transactional purchasing arrangement.

Supplier management strategy and solutions for business

The strategic approach to supplier relationship management has always been critical for businesses that rely on third-party suppliers. For businesses that strive to succeed in the market, having trusted relationships with dedicated suppliers should be one of the primary goals. In this blog post, we are going to take a closer look at some of the key supplier relationship management strategy that will help you improve relationships with suppliers and streamline your supplier relationship management framework:

Suppliers are not just vendors

For a smooth supplier relationship management, businesses must consider their suppliers as their partners. This partnership should be based not only on financial transactions but also on mutual trust and loyalty between both parties. Suppliers should be made to feel like they are a part of the business. They must be informed about your processes, such as product launch and promotions. It is also essential to listen to their concerns or grievances. 

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mining industry

3 Procurement Trends That Can Change the Dynamics of the Mining Industry in 2019

Today commodities are moving back broadly into the global market balance but the challenges for the mining industry are far from over. In a world of more complex ore bodies, deeper mines, social and geopolitical risks, growing energy costs, resource nationalism and lack of infrastructure, global mining industry remains under exceptional pressure to control costs, boost efficiency and improve safety performance.

Rising cost is a cause of concern for the mining industry as the strategies of mining companies depend heavily on the current state of the market. Also, the rise in cost is resulting in the declining quality of ore and limited accessibility of new deposits. This will squeeze the supply in the years to come, potentially driving a commodity-price rebound as the global demand continues to rise. So, the companies need to analyze the new procurement trends in the mining industry that can offer exceptional opportunities for efficiency gains and can help in controlling costs as well.

At SpendEdge, we understand the impact that rapidly changing procurement trends can have on your mining business. And to help companies in the global mining industry to reposition their portfolios and excel in the competitive landscape, our team of experts has highlighted three procurement treContact USnds that have the potential to change the complete dynamics of the mining industry in 2019.

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market intelligence

How Market Intelligence Can Dramatically Boost Your Supply Chain

The supply chain in modern companies is increasingly complex and dynamic in nature. From suppliers and industries to raw materials and commodities, there have been steady changes taking place across the supply chain of new age companies. Furthermore, the increasing uncertainty in the economic markets are forcing organizations to closely monitor market conditions and respond appropriately through improved supply chain strategies.

Traditional ERP systems are undoubtedly highly useful management tools, but they are mostly blind to external data. Their “inside-out” approach can leave companies inadequately equipped when planning and executing competitive supply chain strategies. However, with the advent of new market intelligence tools can resolve this problem. With the help of supply market intelligence, ERP systems can now incorporate real-time insights on suppliers, customers, and competitors, thus creating a perspective to reduce risk and create a competitive advantage. Here are just five benefits companies can realize with a market intelligence intelligence-driven supply chain.

Improved supply chain strategies

 It is vital to take into consideration the impact of potential events before undertaking supply chain planning. For instance, factors such as a sudden increase in demand, or in the event of any supplier undergoing a catastrophic event, companies must be able to be prepared to handle such situations. Market intelligence provides early warning signals and unique insights into events that are likely to occur. Furthermore, it can also help in assessing alternative suppliers and approaches. This prepares companies to handle unforeseen contingencies better.

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Competitive advantage

Competitive advantage often comes to companies who are more agile, nimbler, and react faster when compared to their peers in the market.  In fact, a quick reaction to unforeseen disruptions is the route for modern companies to gain a competitive advantage. For instance, if a particular supplier is struggling to meet the company’s demand, they can quickly move to an alternative. Or, if a key component may be difficult to procure, companies can lock up the supply before the competitor does. Market intelligence via real-time alerts is key to achieve this as it gives faster insights for companies to be prepared for contingencies in the future.

supply chain risk

6 Major Causes of Supply Chain Risk and Ways to Overcome Them

Supply chain risk is an inevitable component of a business, and these risks evolve and become more prevalent with time. In this dynamic scenario, yesteryear’s supply chain risk management strategies often prove to be ineffective. Businesses having a poor grasp of hazards in the supply chain will increase freight spend and diminish the brand value. However, having an idea about the supply chain risk that companies endure in the global market will help reduce their impact. This will also enable shippers to mitigate the likelihood of occurrence and minimize disruptions simultaneously.

Unfavorable weather conditions

Extreme weather is a significant supply chain risk to ocean freight activities. Tropical storms can prove disastrous for ocean carriers. The recent reports on the global climate change indicate tropical storm threat is on the rise. One of the ways in which shippers can avoid such supply chain risk is through re-evaluating ocean route used and determining which carriers can increase shipping in anticipation of tropical storms.

Connectivitysupply chain risk

In the age of modern trade, supply chain risk exists within the connectivity of systems. The integration and modification of systems increase the risk even though systems can be integrated through an open-source software. Furthermore, poorly integrated systems could lead to bottlenecks and disruptions in the supply chain. To stay prepared for such contingencies, companies must create a backup data resource and decentralize the data storage. It is also vital to ensure that the system connectivity is on a secure network. Furthermore, companies must give emphasis to avoid unnecessary modifications, and work with expert supply chain systems’ integrators in order to maximize profitability and efficiency.

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Supply chain risk

5 Useful Tips to Boost your Supply Chain Management

Efficient supply chain management is the key to boost a company’s revenue and stay competitive in the marketplace. To achieve this, companies must be hyper-focused on reducing waste to generate cost savings and minimize the risk in supply chain management. Furthermore, the rising customer demand calls for better service and availability of right products at the right time so that companies don’t lose their valuable customers to competitors. Here are the five key tips for companies to boost their supply chain management:

SUPPLY CHAIN EFFICIENCY

Tips to boost your supply chain management

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Partner with current suppliers

Often, companies tend to face market wide challenges in supply chain management. Developing an effective solution for this kind of scale might be a difficult task for a single partner within the value chain. Hence, it becomes necessary to develop deeper partnerships with your suppliers to help grow each of your businesses. Creating a mutually beneficial strategy can be tricky, but with the right planning and strategies in place, it is easily attainable. Here enterprises must lay the focus on clearly defined, revenue sharing-based, and easily trackable KPIs, and information transparency. Furthermore, they can also develop a coalition charter that outlines the arrangement in detail. In this manner, firms can tackle issues in supply chain management at a scale beyond their current capabilities.

Maximize IT investment

Today, the IT department is tasked with both supporting daily operations and expanding the business operations. It is important for modern businesses to invest in new technologies that can help employees perform tasks in a much-simplified manner and in turn boost the company’s supply chain management.

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Comprehensive training of the workforce

A training program should be aimed at teaching the workforce more than what the daily tasks that they are expected to perform. It is vital for companies to share their comprehensive plan to the employees in order to increase productivity while reducing costs. The workforce must be trained on the importance of internal and external customer service. It is also important to incentivize them to act in accordance with your business’ vision, mission, and values. Sharing this and training will drive a successful organization by creating aligned goals while improving supply chain productivity.

Improve information sharing and visibility

Transparency is an essential ingredient to determine the efficiency of operation in supply chain management. Furthermore, it is high time that companies eliminate slow, unreliable spreadsheets to provide information. Rather they must share up-to-date information through current technology solutions. Other ways to increase information sharing include taking advantage of big data analytics, measuring supply chain metrics regularly, and also involving employees in identifying inefficiencies in the system. By keeping the workforce and the clients informed, companies can create opportunities for innovation.

Analyze customer trends and opportunities

Supply chain managers must keep a constant watch on the trends and opportunities in the market. This will not only help them be in line with the newest market opportunities but will also consequently improve the overall supply chain management and its efficiency by adopting innovative techniques to cater to customer demand.


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vendor management best practices

Busting 4 Common Myths on Supply Chain Management

Global supply chain management has evolved drastically over the years. Technology and innovations are the major contributors in fueling the efficiency and flexibility of supply chain processes across various industries. However, in this era of digitized and globalized business, keeping up with the speed of changes has become more difficult than ever before. As the landscape evolves, supply chains must evolve in order to adapt to stay ahead of the curve. A company’s ability to manage complexity will greatly define how well they can compete and succeed.

Although the importance of supply chain management is quite evident for modern economies, there are sContact USeveral myths and misconceptions that plague the practice. Let’s examine some of the most persistent and stubborn supply chain management myths and carry out a reality check for each of them:

Myth #1:  Supply chain management is all about purchasing

Associating the supply chain management process with only purchasing functions is clearly an outdated outlook that ignores the strategic role that SCM plays for modern digital enterprises. Rather, the supply chain must involve greater flexibility, enhanced strategic awareness, and stronger entrepreneurial thinking. Today’s supply chain professionals are also looking at mastering several other key functions that impact SCM, including customer experience, systems thinking, and innovation.

Myth #2: Investing in SCM applications will generate rapid returns

Pragmatic application of supply chain management products in real-world business problems will undoubtedly deliver good returns. However, poorly specified implementation and investment in SCM can result in a cycle of continued investments to support unrealized but promised benefits. Companies must exercise focus on delivery, quality, and time targets. Effective and detailed planning is an essential element of an effective global supply chain management process.

Myth #3: Right forecasting can eliminate supply chain issues

Considering forecast accuracy as the sole cause of issues is dangerous and stems from two main misconceptions. Firstly, forecast accuracy should not be considered as an end in itself. Instead, it is one contributor to outcomes of the supply chain process that needs to be managed to deliver the desired results. Secondly, despite all the best attempts, forecasts in most cases will not be completely correct. It’s much more important for enterprises to recognize this fact and manage an understood level of risk than to spend too much effort in improving forecasting when it may not translate to better outcomes.request proposal

 Myth #4: Lesser inventories are always better

Controlling costs might be the major agenda for most supply chain managers. Consequently, they try to keep the inventory as low as possible. But on the flip side, this could greatly increase their financial risk. While it’s true that holding a high level of inventory ties up business funds that could rather be used in other areas. However, it is also important to remember that high inventory isn’t always a bad thing — and often proves to be a good sign of growth ahead. For instance, it is remarkable if an organization increases inventories because it is confident about the economy and forecasts higher demand. Furthermore, when comparing the extremes of a stockout versus and holding more inventory than you need, the former is definitely worse. When demand cannot be fulfilled, customers will be disappointed and the risk of alienating them and losing them to competitors are higher.


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supply chain management services

4 Incredible Techniques for Supply Chain Risk Management

What is supply chain risk management? 

Supply chain risk management refers to the process of undertaking strategic steps to identify, assess, and mitigate risks in the company’s end-to-end supply chain. As businesses both small and large seek to extend their global reach, risk management in the supply chain is increasingly becoming crucial. Businesses that enter into new markets often need to form new supplier relationships, engage with state-owned entities, and adapt to local laws and culture. This results in supply chain complexity that can result in a wide range of financial, regulatory, and legal risks. Supply chain risk management strategies help enterprises to foresee potential issues and adapt to the risks and supply chain disruptions as quickly and efficiently as possible.Contact US

Supply chain risk management techniques

Innovation and efficiency in contracting management

One of the emerging trends in supply chain risk management is contract streamlining.  It involves having a better understanding of the costs involved in creating and negotiating old-style “legalese” contracts. Many of these are unnecessarily written in legal prose, lengthy, difficult to understand, one-sided protections. But newer styles of contract design and wording enable procurement teams to have a dramatically-higher success rate of executing well-drafted agreements. Procurement contract portfolios are a great example of how legal risks can outweigh business balance, extending the contracting cycle time and procurement efficiency. Instead, several legal and procurement groups find it better to rely on concise and well-balanced contract documents that result in easier acceptance by suppliers.

Better understanding of potential suppliers

It is important for businesses, especially in the global scenario to have a clear understanding of the thirdcta SE-party supplier’s business practices. This involves answering critical questions such as – Does the supplier have a strong track record for meeting contractual obligations? Are there any conflicts of interest in existing business relationships? Do the suppliers observe the same high standards as your company with respect to providing safe working conditions and protecting the environment? It must be ensured that the supplier meets all the pre-requisites of the business before onboarding a new supplier.

Supply chain risk management awareness and training

Supply chain risk management strategies cannot be successful unless significant attention is given to training personnel on supply chain policy, procedures and applicable management, operational and technical controls, and practice. Building an awareness training program provides guidelines for establishing and maintaining a comprehensive awareness and training program.

Resolve or prevent disputes effectively

Disputes are inevitable elements in different stages of the supply chain. One of the key steps in mitigating dispute-related risks and promoting smooth operations is to proactively prevent disputes from occurring or resolving them amicably in case of occurrence. The right processes and technologies are crucial in identifying sources ofdisagreement that can cause disruption in the supply chain. It is important to employ people with the right communications skills and the ability to not affect the ongoing supply of materials. A mutually beneficial resolution is often the best way to maintain a relationship that not only mitigates risk but also enhances value for the company.


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