Last year, the global pandemic, economic turmoil and widespread shifts in consumer behavior created a domino effect of supply gaps that exposed long-standing weaknesses in our supply chain.
Despite the need for better supply chain management, business leaders have been slow to act, choosing efficiency over flexibility for years. In the Forbes 2021 CxO Growth Survey, C-suite participants rated the “Supply Chain Strategy Review” as a low priority. However, delaying actions can expose supply chains to serious financial risks and prevent companies from seizing the benefits of resilience.
While the massive shifts in consumer behavior caused by the pandemic have exposed a major gap in our supply chain, it has also created an opportunity for IT leaders to identify areas where they can improve.
A connected and flexible supply chain helps you respond to changing demands without affecting production. It also ensures that the cost of production and delivery is consistent and predictable.
At HSO, we propose the following actions to ensure supply chain resilience:
- Analyze how your current supply chain works, the strength of your supplier relationships and how they are affected by internal versus external resources
- Identifying where workforce gaps exist along the supply chain and where they can be better filled and retained
- Investing in new research and development and
TechniqueTo connect the finance, sales and operations systems, and develop innovation opportunities
smarter maintenanceand machine learning models to increase equipment uptime, quality, efficiency and product life
In order to facilitate these improvements, you need two things as a foundation: a responsive and connected technology system and a strong supplier relationship strategy.
Responsive and connected technology system allows you to quickly scale production up or down from new or existing suppliers. If your systems are disconnected, you can leave parts of the business running for cross purposes. Often a lack of consistency and standards or a structured approach to your operations is at the heart of the problem.
In the case of a supplier setup, it is not uncommon for the approval of a new supplier to take weeks or even months. The traditional RFQ process is a wide-ranging job and needs suppliers to meet your needs and standards. However, once approved, it can still be a manual process for monitoring supplier standards.
Balancing speed and quality
An agile manufacturer requires speed, control and the ability to turn the taps on and off your supply chain. But how do you achieve speed without compromising quality? Automating supplier management, finance, and production processes is one way, and manufacturing technologies like Microsoft Dynamics 365 provide the complete platform to do just that.
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and a wide range of business applications designed to help your company achieve its goals.