In today’s volatile business environment, collaboration with suppliers has never been more critical. The pandemic exposed vulnerabilities in supply chains, yet many organizations continue to rely on outdated systems that hinder visibility and effective collaboration. Is your organization prepared to meet the challenges of modern supply chain management?
Discover the key actions your business can take to enhance supplier collaboration and build resilience in the face of disruption.
The Current State of Supplier Collaboration:
Despite the potential of digital transformation, many companies still rely on outdated technologies when managing supplier relationships. Recent studies show that supply chain visibility is a priority for organizations, with 30% of executives citing it as their main focus for managing risk in procurement.
Key Insights:
- Visibility and Collaboration Challenges: More than half (56%) of organizations believe poor collaboration with suppliers directly impacts business performance.
- Business Network Value: Digitalizing supplier collaboration through a business network can offer greater efficiency, risk mitigation, and long-term resilience.
Actionable Steps to Improve Collaboration:
- Plan for Disruption
Disruptions such as natural disasters, geopolitical tensions, and unexpected strikes can wreak havoc on supply chains. Effective risk management starts with visibility. Without access to timely, accurate data, responding to disruptions becomes significantly more challenging.Action Tip: Build resilience by ensuring real-time visibility into your supply chain and preparing for both major and minor disruptions. - Develop an Agility Mindset
Supply chain diversification is essential for agility. Half of the companies surveyed (50%) are focusing on expanding their supply base to enhance flexibility. Creating a diverse supplier network and integrating them digitally allows for faster decision-making and response to changes.Action Tip: Connect to a global network of suppliers to ensure flexibility and mitigate risks. - Accelerate Digitalization Beyond Your Organization
Despite digital progress internally, many organizations still rely on outdated methods like email for supplier collaboration. Digitizing the entire process from forecasting to purchase orders ensures smoother operations and better business outcomes.Action Tip: Extend your digital transformation to external collaborations with suppliers to improve efficiency, reduce errors, and enhance risk management.
Why Digital Supplier Collaboration Matters:
- Increased Visibility and Agility: Digital tools provide real-time visibility and enable quicker reactions to changing conditions, which helps minimize disruptions.
- Improved Business Resilience: A connected and agile supply chain enables your business to stay competitive, meet customer demand faster, and reduce risks associated with disruptions.
- Enhanced Competitiveness: Companies that adopt digital collaboration with trading partners gain a significant competitive advantage in today’s fast-paced market.
This article is posted at sap.com
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