Supply chain visibility is essential for successful procurement, as it enables businesses to proactively manage risks and optimize their supply chain. By having a clear view of their entire supply chain, businesses can identify potential issues and take steps to mitigate them. This is where Sales and Operations Planning (S&OP) comes in – it allows businesses to align their procurement and logistics strategies, optimize their supply chain, and reduce costs.
The Rising Cost of Supply Chain Disruptions
In today’s global business environment, supply chain disruptions are more common than ever before. Whether it’s due to natural disasters, supplier bankruptcy, or transportation delays, disruptions can cause significant challenges for businesses. A recent study by Blue Yonder, a leading provider of supply chain management software, found that supply chain disruptions are costing businesses more than ever before. In fact, the average cost of a supply chain disruption is now $4.2 million, up from $1.9 million in 2015. This increase is due to a variety of factors, including increased global trade, more complex supply chains, and the impact of natural disasters and other disruptions.
Benefits of Investing in Supply Chain Visibility
To address these challenges, businesses are increasingly turning to supply chain visibility solutions. These solutions enable businesses to track their inventory, monitor their suppliers, and identify potential disruptions before they occur. By having a clear view of their entire supply chain, businesses can proactively manage risks and minimize the impact of disruptions.
For example, in 2011, Procter & Gamble implemented a new supply chain visibility system that allowed them to track products at every stage of the supply chain, from raw materials to finished products. This system helped them reduce inventory costs, improve customer service, and better manage supplier performance.
Another example is Walmart, which has implemented a supply chain visibility solution called Retail Link. This system allows suppliers to access real-time data on product sales, inventory levels, and consumer trends. By sharing this information with suppliers, Walmart has been able to reduce lead times and improve on-shelf availability, while also reducing inventory levels and improving cash flow.
How Sales and Operations Planning and Supply Chain Visibility Can Address Your Business Problems
Sales and Operations Planning and supply chain visibility are two powerful tools that businesses can use to address procurement and logistics problems, as well as mitigate supply chain disruptions. By aligning procurement and logistics strategies through S&OP, businesses can optimize their supply chain and reduce costs. Meanwhile, investing in supply chain visibility solutions can help businesses proactively manage risks and minimize the impact of disruptions.
To ensure your business stays ahead of the curve, consider implementing S&OP and investing in supply chain visibility solutions. By doing so, you can improve efficiency, reduce costs, and deliver better service to your customers. Don’t wait until your business is hit by a supply chain disruption – take action today and start optimizing your supply chain for success.
- Sales and Operations Planning – What Is It, and Why Should You Care?
- Business Success with Sales & Operations Planning (S&OP)
- Are your Procurement Operations Goals SMART?
- NPLA’s Strategic Procurement Operations Transformational Model (SPOT)
- Organizing Procurement Department Operations
- Are Your Procurement Operations Dashboarded?
- Supply Risk Checklist
- Vendor Risk Management
- Your Business Strategy Is Foolproof, Right?
- 10 Strategies for Improving Supplier Relationship Management SRM
- You Do Have A Late-Stage Negotiation Strategy, Don’t You?
- Expert Procurement Operations Management
- 14 Procurement Best Practices
- Developing a Sustainable Supply Chain Strategy
- The Five Worst Practices in Procurement
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