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.