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Strategies to Minimize the Impact of Coronavirus on Supply Chains

Manufacturers across the globe are struggling to address supply chain disruptions caused due to COVID-19 outbreak. Commonly called as coronavirus, is impacting supply chains in terms of parts, labor, and government restrictions. Quarantined workers and shortages of components have crimped the availability of goods from different manufacturing locations, primarily China. The severity of disruptions is expected to increase after the first quarter of this year. Lead times have doubled, and that shortage is compounded by the shortage of air and ocean freight options to move products for the majority of US businesses due to coronavirus impact on supply chains. The experts at SpendEdge have put forth some key points after evaluating the coronavirus impact on supply chains. Here they are:

1. Companies in the manufacturing sector could expect a delay of approximately three weeks for the supply of raw materials and products.

2. There could be disruptions in the supply chain of hardware required to run the business or third-party systems.

3. As the situation is expected to remain fluid due to lockdown in several regions, shipping and delivery could become a new choke point for some industries.

4. Not just Facebook and Apple products, the shutting down of global supply chains could lead to scarcity of other day-to-day essentials as suppliers face their own challenges in improving supply chain management operations.  

 

Want to understand coronavirus impact on supply chains? Request a free proposal and our experts we will get back to you in 48 hours with customized solutions.

How Can Companies Prepare for the Future? 

Advanced manufacturing units 

Companies of today must focus on advanced manufacturing and things such as 3D printing and artificial intelligence rather than setting massive factories that build things at large scale and at low labor costs. Instead of making one city a manufacturing hub, the focus should be on smaller manufacturing hubs in different cities. Shortened supply chains will reduce coronavirus impact on supply chains and improve capability and innovation.

Wondering how companies in different categories are improving supply chain management and reducing coronavirus impact on supply chains? Contact us, to gain comprehensive insights.  

Localized supply chains

If companies want to prepare themselves for the future, they need to create small and agile supply chains. They cannot afford to have a 30-day shipping time from China to the United States. Supply chains need to be nimble, not just to address unprecedented risks or pandemics but for innovation. It is really difficult for companies to be innovative onshore when they have advanced manufacturing engineering offshore.

Creating localized supply chains is crucial for companies to address unprecedented risks. Stay a step ahead by requesting a free demo of our procurement platform to gain exclusive insights into coronavirus impact on supply chains and devise effective strategies.  

In-house logistics 

Companies should consider investing in a self-operated, proprietary supply chain and logistics network and create an internal task force to manage the crisis response. Deploying human and autonomous capacity to facilitate the delivery of crucial supplies and waiving fees for some suppliers could help companies resume their operations quickly. In devastating epidemic situations like this, improving in-house logistics networks could lead to greater profitability for companies.

To know more about coronavirus impact on supply chains and ways to improve logistics and supply chain management strategies, request more information from our analysts.

procurement and supply chain management

Procurement and Supply Chain Management: Challenges, Strategies, and Trends Impacting the Process

LONDON: SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest articles on the trends impacting procurement and supply chain management companies and strategies to manage them. 

Challenges Facing Procurement and Supply Chain Management

In the current competitive scenario, its customers who tell suppliers how and when they want their inventory to be delivered. This results in inefficiencies, excess costs, and inventories for companies. This article will help you explore the challenges faced by companies while navigating global markets. It will provide key insights into factors such as compliance, rapidly evolving markets, globalization, and supplier management impacting the efficiency of procurement and supply chain management process.

“Improving the procurement supply chain management process is crucial for companies to optimize the processes of acquiring inputs from suppliers, converting them into finished products, delivering those outputs to customers,” says Parikshit Ghosal, Vice-President at SpendEdge.

Are you facing similar challenges and looking for solutions to navigate global markets successfully? Request a free proposal to access our procurement and supply chain management solutions.

Strategies to Create an Agile Procurement and Supply Chain Management Framework

Responding to changes is the key to gain success in today’s business environment. Companies not just need to react faster than competitors, but also need to prepare better and execute faster. Procurement and supply chain management is a complex process and requires companies to devise strategies that can manage a supply base and meet consumers’ needs. The article will help you gain knowledge about the key procurement supply chain management steps and framework. The article will show how companies can ramp up products quickly and launch ahead of their competitors by analyzing different market conditions.

Get ahead of your competitors by devising effective procurement and supply chain management strategies. Schedule a free demo to know more about our services. 

Trends Shaping Procurement and Supply Chain Management

Companies strive hard to keep up with increasing customer expectations and ensure their presence in the market. New technologies such as AI, machine learning and blockchain disrupt the procurement and supply chain management process, thereby impacting operational efficiency. This article will help you understand how such technologies can be applied to create more value for customers. Also, it will provide key insights into inventory positioning, dropshipping, reverse logistics, and gender diversity at the portfolio level in North America.

Want more insights on trends shaping procurement and supply chain management in different supply markets? Reach out to our experts now!

Facilities Management companies

SpendEdge Takes a Closer Look at Trends Impacting Logistics and Supply Chain Management in North America

Now, moving into 2020, companies must keep up with increasing customer expectations to ensure their presence in the market. These expectations are impacting every part of the supply chain in the complex business environment. At the same time, improving logistics and supply chain management has become equally important to make supply chains faster, more customer-centric, and sustainable. The range of new technologies such as AI, machine learning and blockchain are disrupting the supply chain management process and it can be challenging for companies to enhance processes. Here are the top trends that are anticipated to impact the logistics and supply chain management during 2020.

Want to know how emerging technologies will impact the logistics and supply chain management process in the coming year? Request a free proposal and our experts we will get back to you in 48 hours with logistics and supply chain management best practices. 

 

Trends Impacting Logistics and Supply Chain Management 

Logistics and supply chain management trends #1: New technologies go mainstream in 2020 

In the last few years, technology has enhanced significantly. Companies have numerous technologies available on hand. With the arrival of 5G, firms can expect immense opportunities as it will seamlessly connect a massive number of embedded sensors. Companies will require data management capabilities to mine the data and derive actionable insights. Artificial intelligence will be extensively used in every industry and predictive modeling will become even more accurate. This will allow businesses to apply technologies in more effective ways and create value for customers.

Logistics and supply chain management trends #2: Inventory positioning becomes paramount 

Consumers now have a plethora of options to get the products they want at the earliest. This has increased their expectations and forced e-commerce companies to maintain the right items in stocks to meet two-day or one -day orders. Also, it has made them realize the importance of inventory positioning. According to our experts, the new decade can see the rise in the number of micro-fulfillment centers in different industries.

Wondering how our expertise can help you devise cost-effective strategies and better manage their inventory?

Contact us, to know more about strategies to improve the inventory, logistics and supply chain management process  

Logistics and supply chain management trends #3: Gender diversity at the portfolio level 

This decade will witness a steep rise in women entering the supply chain. One-third of the new associates will be women. Researches have shown a clear link between increased gender diversity and return on investments (ROI). The higher a company’s gender composition, the better it performs in average relative returns. Overall, companies demonstrating a commitment to corporate gender diversity are expected to outperform against the cumulative performance of major North American companies.

Logistics and supply chain management trends #4: Dropshipping will increase manifold

The rising e-commerce and direct-to-consumer growth will impact the supply chain operations significantly. Companies and wholesalers will start dropshipping and disintermediate their retail partners. The trend will accelerate due to its ability to improve profit margins and create direct customer relationships. It will empower logistics service providers as they will obtain business from retailers looking to outsource direct-to-consumer fulfillment.

Inability to adopt new age methods in the business will make it difficult for retailers to ensure their presence in the market. Stay a step ahead by requesting a free demo of our procurement platform to gain exclusive insights to devise effective logistics and supply chain management strategies. 

Logistics and supply chain management trends #5: Reverse logistics will become prominent

Companies who are facing difficulties in reverse logistics management must gear up to ensure their presence in the market and have a robust reverse logistics process. Consumers will make more impulse buys as social media sites make it easier to buy products directly through in-platform selling tools. Such impulse shoppers will end-up returning their purchases to retailers.

To know more about the latest supply chain trends and strategies to improve logistics and supply chain management, request more information from our analysts.

food supply chain

Increasing Business Profit Levels With the Aid of Supply Chain Management

SpendEdge, a leading provider of supply chain management solutions, has announced the completion of their latest newsletter on increasing business profit levels with the aid of supply chain management. The article offers detailed insights into the benefits of supply chain management solution reaped by our clients in different sectors. The article also highlights how improving supply chain management helped companies to reduce inventory costs, create value-added processes, and address supply chain risks. 

Increasing Bottom-line Savings on a Sustained Basis

With the escalating competition, increasing asset utilization and reducing manufacturing lead times has become a key objective for CPG companies. The client, a CPG company in Europe leveraged our expertise to revamp their supply chain management process. Their existing process was inefficient in terms of supply chain visibility and resulting in increased error rates due to lost invoices.

During the course of this engagement, our analysts employed a multi-tier supply chain management process. They offered detailed insights into inventory and point-of-sale (POS) data and empowered the client to proactively manage volatile demand. The solution thus helped the client to capture significant bottom-line benefits on a sustained basis.

Reducing Supply Chain Costs by Centralizing Logistics Network

Formulating a centralized logistics network for procurement activities has always been a challenge for companies. One of our clients, a heavy equipment manufacturer was facing similar challenges and wanted to streamline their supplier and carrier services for enhanced performance and accountability.  They wanted to minimize category spend and consolidate their supply base to address the rising demands from global markets.

Our supply chain management experts conducted a comprehensive research to consolidate metrics across various sectors of the supply chain. The solutions offered helped the client to centralize their logistics operations and reduce supply chain costs.

Performing Supply Chain Analysis to Create New Value-added Processes

Managing operations at the global level presents a myriad of challenges for logistics and shipping managers. A CPG company was finding it difficult to reduce inventory costs, improve forecasts, and schedule events. They wanted to improve their logistics and supply chain management process to obtain end-to-end ownership of global shipments by improving supply chain visibility.

The logistics and supply chain management solution offered by our experts helped the client to perform supply chain analysis and address redundancies in the supply chain while creating new value-added processes. Additionally, the improved logistics and supply chain management process increased transportation management efficiency and tracked just-in-time delivery metrics.

cold chain logistics

Purchasing and Supply Chain Management Challenges and Ways to Overcome Them

In the current competitive scenario, purchasing and supply chain management is a reverse of prior practices where manufacturers supplied product to customers. Now customers tell suppliers how and when they want their inventory delivered. The objective behind purchasing and supply chain management is to remove inefficiencies, excess costs and excess inventories from the supply pipeline which extends from the customer back through suppliers.

By effective purchasing and supply chain management, it is hoped that inventories, caused by uncertainties and slow response, will be significantly eliminated. However, it is increasing challenges for businesses. The intersection of many disciplines, such as marketing, procurement, management, operations research, and logistics is making it difficult for businesses to analyze the impact of purchasing and supply chain management.

At SpendEdge, we understand the impact that purchasing and supply chain management can have on your business. Therefore, in this blog, we have compiled a list of purchasing and supply chain management challenges and the possible ways to overcome them.

Purchasing and supply chain management can provide tremendous competitive and business advantages. Request a free demo and know how our experts can help you leverage the same.

Purchasing and supply chain management challenges

Compliance

As navigating global markets is becoming challenging day by day, understanding and following the compliance requirements of various regional, national, and international markets is getting invariably complex. No matter what your company offers in terms of products and services, there are always sets of rules and regulations that your purchasing and supply management must comply with.

This includes various safety laws, environmental protection laws, standards and quality specifications that your product should be compliant with.

Your team, from managers and engineers to people managing your inventory and logistics, need to be aware of the relevant rules and regulations across the complete purchasing and supply chain management process.

Solution: Thorough understanding of supply partners and the risks associated with them in a timely and cost-effective manner are the basic steps towards effective purchasing and supply chain management. SpendEdge can help you in identifying the need and planning the purchase by critically evaluating the procurement process while complying with regulatory requirements.

Rapidly evolving markets

Consumer behavior is usually affected by cultural social, personal, and psychological factors that rapidly evolve due to changing market demands. This fast-changing market brings purchasing and supply chain management challenges and increases pressure on your procurement teams to keep up with the latest trends. You need to innovate new products while keeping the total manufacturing costs low as the trends don’t last long. Additionally, you constantly need to update the features of your products to sustain the competition. This increases the complexity of purchasing and supply chain management.

Solution: The accurate real-time insights pertaining to supply markets will help you make effective planning decisions and tackle challenges arising in the purchasing and supply chain management created by fast-changing markets.

 

Still not sure how to address challenges pertaining to purchasing and supply chain management?

Request a free proposal now!

Globalization

Unlike earlier, supply chains are no longer confined to specific regions. The production of products can involve dozens of countries and hundreds of parts vendors and facilities. Even something as humble as pen or pencil might involve quite challenging logistics. This requires an efficient purchasing and supply chain management and detailed analysis of market size and entry barriers.

Solution: Extensive understanding of these global trade lines, and the ways they impact your company’s products and roadmap will allow you to optimize supply chain purchasing process and utilize emerging opportunities while expanding to a new market.

Supplier management

While managing your supply chain is crucial, selecting the right supply chain partners and the right suppliers is important for purchasing and supply management. They ensure that you are able to gauge market opportunities and achieve your organizational goals. Moreover,  with the right set of suppliers, you can follow the necessary standards, and pass the quality controls that your business demands.

Solution: The detailed study on every attribute from the supplier’s financial stability to the level of short and long-term liabilities will consolidate suppliers and reduce the risks associated with currency and interest rates. SpendEdge can also help you to reduce purchasing and supplier management costs and increase the efficiency of your procurement process.

Is your organization facing purchasing and supply chain management challenges that are hampering the growth of your business? Get in touch with our experts and know how they can assist you with tailor-made solutions. 

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.

Interested in devising a strategic sourcing strategy?

Request a free proposal and know how our experts can help you to devise state of the art sourcing strategies.

#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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Top Five Benefits of Supply Chain Planning | SpendEdge

Continuously changing market conditions and consumer demands have made it vital for businesses to evolve rapidly and be prepared for unforeseen obstacles and circumstances in their supply chains. Today, businesses are under the pressure to develop new products and keep up with the latest trends while minimizing their total manufacturing costs. Without some sort of a comprehensive plan, businesses may fail at order fulfillment, which, in turn, can result in revenue loss.

Reducing life cycle of products demands a flexible supply chain that can be employed for manufacturing other products according to future needs. This requires enterprises to anticipate the demand for upcoming products and improve supply chain performance, making it compulsory for companies to follow the best practices in supply chain planning for better supply chain management.

At SpendEdge, we understand the impact that an effective supply chain planning can have on your business. And to help companies sustain themselves in the marketplace, our team of experts has highlighted five crucial benefits that companies can leverage through supply chain planning. But before we read about the advantages of supply chain planning, let’s know more about it:

What is supply chain planning (SCP)?

Supply chain planning basically refers to the companies’ ability to make accurate forecasts pertaining to their future demands. It is a process which requires companies to balance supply and demand and manage their assets to optimize the delivery of goods and services from suppliers to customers. Supply chain planning (SCP) provides strategic and tactical planning support to help deal with supply, distribution, manufacturing, planning, production scheduling, and forecasting.

Want to develop an agile supply chain that can address the rapidly changing market demands? Get in touch with our experts and know how our supply chain planning solutions can help you.

Top five benefits of supply chain planning

Retain customers

When companies support their supply chain planning with integrated demand forecasting, they are in a position to address spikes in demand. This reduces the chances of stockouts and helps companies fulfill their customers’ demand when they need it the most.  Meeting customers’ demands helps companies to win their loyalty and ensure sustainable profits.

Stay on top of demand

By implementing effective supply chain planning strategies, businesses can forecast the demand for their products. They can accommodate shorter product life cycles, the impact of fluctuating economies and emerging markets, and enhance their supply chain planning systems while responding to changes in demands. 

Reduce overhead costs

New businesses usually lack the competency and market knowledge required to reduce the prices of their products without affecting the overall operation in a drastic manner. With effective supply chain planning, companies can reduce costs in the production process without compromising the quality and price of the final product.

Increased production costs can affect the overall costs of products drastically. Request a free a proposal and know how an effective supply chain strategy can reduce the overhead cost for your organization.

Minimize delays

Many supply chains are plagued by delays due to some or the other reason. They constantly struggle with late shipments from vendors, issues on production lines, and logistical errors that affect their supply chain management system. Effective supply chain planning help companies avoid all such issues down the line.

Optimal shipping options

As new ecommerce companies continue to flourish, buyers have plenty of options to purchase products. In such a scenario, companies need an effective shipping plan to meet the demands of the marketplace. They need to ship products in a quick and efficient manner to ensure the success of their business. With the help of an efficient supply chain, businesses can determine the best way to ship their products and reduce costs at the same time. (more…)

Spend Analysis : Assessing the Current Spend and Improving Supply Chain Efficiency for a Medical Devices Company – SpendEdge

Spend Analysis Solution Transforms Finance Operations and Reduces Operating Costs

About the Client 

The client is a leading medical devices company, specializing in the development of medical devices, laboratory instruments, and diagnostic products. The company supplies devices to hospitals, laboratories, and clinics worldwide. The company has ingrained its place as a leader in the medical devices market.

The Business Challenge 

The future looks sharp for the medical devices industry. With global economic growth, innovations and an aging population that has a growing need for healthcare, revenue for medical devices is poised for growth. However, in this turbulent environment, companies that can shift their supply chain priorities and better manage spend will be able to deliver significant value. Moreover, the rising need for supply management and strategic cost management have urged players in the medical devices manufacturing space to leverage the use of robust spend analysis solutions. Spend analysis solutions help companies in the medical devices manufacturing space to identify the potential opportunities and deliver actionable insights into the spend data to generate improved ROI. The spend analysis solutions also address concerns about the maverick spends across the supply chain and help achieve superior supplier relationship efficiently.

The client, a renowned medical devices company was facing challenges in reducing the cost across the supply chain and managing their tail spend. While public spending has become endemic, the client realized the need to drive more competitive pricing. Moreover, the client’s objective was to adopt spend analysis strategies to identify and optimize their spend areas. Additionally, the client needed to streamline their supply chain management and subsequently maximize profits by leveraging SpendEdge’s spend analysis solutions.

(more…)

SpendEdge’s Inventory Management Helped a Pharmaceutical Supplier Maintain Accurate Inventory Levels and Minimize Cost of Inventory

With the growing concerns pertaining to healthcare treatments, the pharmaceutical suppliers have witnessed a promising growth over the past few years. Moreover, the pharma companies are expected to witness considerable growth, owing to an ageing population, changing lifestyles, and unhealthy eating habits. However, with these rising customer expectations, the commercial environment is getting harsher with customers looking for cost constraints in the pharmaceutical products offered. Moreover, inventory management is becoming a major concern for the companies in the pharmaceutical industry. While the pharma companies can’t risk drug shortages due to lack of inventory visibility, they also never want to incur the costs of overstock that would negatively impact productivity and the patient experience. Thus, to address these challenges and enhance production capabilities, organizations are looking to devise an inventory management solution.

With the help of a reliable inventory management system, organizations can effectively keep track of their stock manually. In addition, the inventory management system helps businesses restock certain items, the amount of purchase, and the prices to pay.

(more…)

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