03 Jul 2020
Over the last four months, COVID-19 has shown vulnerabilities in the global supply chain that many people wouldn't have predicted under normal circumstances. What had started as a supply issue in Asia as suppliers and factories stopped producing turned into a demand nightmare as the disease spread to the rest of the world, with consumers forced to anchor down in their homes.
There is now a mass shortage in the healthcare supply chain, and food supply companies have been compelled to make significant adjustments to support consumer demand.
What is evident in these unprecedented times of crisis and uncertainty, business leaders need to adapt to the new normal of business disruption by building resilience and returning the supply chain to full effectiveness while reimagining and reforming operations to improve performance.
One of the significant gaps in procurement and logistics has been a lack of visibility and poor collaboration between peers and suppliers. It takes deliberate coordination and cooperation to align capacity in each step of production, and to synchronize it with transportation, distribution, and order management.
Unfortunately, supply chain professionals such as procurement and logistics folks are working in the dark – without adequate operational visibility. According to a recent study of 1700 companies, 81% of organizations do not have full visibility into their supply chains, and worse, 54% of them have no visibility at all.
Let's first discuss what supply chain visibility is and why its essential for procurement organizations. Visibility enables tracking of products throughout the product lifecycle, from raw materials to the final delivery of goods to the consumer. Manufacturers need to know the whereabouts of the goods, the state they are in, and any disruptions caused by unforeseen factors such as customs inspections, accidents, or supplier production issues. This sort of tracking involves multiple vendors and systems along the way, and that's why at Cloudsyte, we believe the best way to provide visibility throughout an organization is through the integration of internal and external platforms into one unified platform – Creating a single source of truth for all data and information across the organization.
This approach creates transparency and builds rapid-response capabilities to mitigate any short-term fallout from a crisis.
Additionally, supply chains need a new, modern approach to supplier engagement. There is an opportunity to leverage a real-time Incident Risk Management platform, one that can facilitate real-time monitoring and event prediction for supply chain folks. The effect is the early detection and correction of any disruptive forces.
At Cloudsyte, we aim to bring innovation and choice to the market, and an open approach centered on supply chain resilience. The Cloudsyte platform is built to provide real-time monitoring and communication to facilitate an agile, collaborative environment meant to inform business decisions better.
With increased importance around the supplier as a strategic asset, Cloudsyte's platform delivers a comprehensive solution with the best-in-class strategic sourcing, elevating the supply chain to vital importance, and transforming the procurement function.
What does all this mean for organizations? Low inventory levels with high turns, stabilization of working capital, and enhanced cash flow.
Every business leader should be asking where they want their organization to be when COVID-19 pandemic is over. And how can emerging technologies be deployed in the organization to help prepare for the next crisis and propel business into a better future?
Request a demo today by clicking the link on top of this page.