Modern supply chain solutions have become the key differentiator for businesses during volatile times
Covid-19 pandemic and the economic recession it triggered has severely affected the world. Global economic activity is forecast to decline on a scale not seen since the Great Depression.
The global crisis has exposed the fragility of world economies and failure of businesses worldwide to endure financial stress. Businesses and industries across the globe are now compelled to rethink and transform their operations, especially their supply chain models.
Supply chains are vital
It is indisputable that modern supply chain solutions are vital for businesses and are, in fact, essential for their success. They are at the core of operational excellence as it affects product and service quality, delivery, costs, customer experience and ultimately, profitability. Businesses that organize, streamline and manage their supply chains benefit from lower direct and indirect costs.
There is a mistaken notion that supply chain solutions are meant only for large businesses. Nothing could be farther from the truth. Once associated with large corporations, supply chain solutions have become essential for all businesses – be it small, medium or large. Supply chain solutions can help boost output and efficiency, reduce costs and increase profits even for small businesses.
Increase in output
Supply chain solutions open a reliable communication channel between the management, the suppliers and the customers. Effective and efficient supply chain solutions help foster close relationships with suppliers and customers, which helps in eliminating delays and increasing output.
Increase in efficiency
Resource wastage, often due to improper planning, can lead to a spike in production costs. This is especially true for small businesses. A good supply management strategy ensures smooth flow of business processes to deliver highest possible efficiency.
Reduction in costs
Supply chain management helps identify processes that contribute to cost increase. The processes are either removed entirely or trimmed to lower operating costs.
Increase in profits
Keeping the costs low is one of the ways to increase a company’s profits. Supply chain solutions lead to elimination of wasteful processes, which translate into significant savings on operational costs.
Advantages galore
Recent global events like the Covid-19 pandemic have highlighted the criticality of modern supply chain solutions and the role they can play in improving business efficiencies and profits.
Without a clear picture of how suppliers function and operate, businesses remain vulnerable to unnecessary expenses, delays and disruptions. Emerging new supply chain technologies help significantly improve visibility across the end-to-end supply chain.
It also increases resilience of businesses and supports their efforts to resist such shocks. Small businesses can react quicker than their bigger counterparts, making it simpler for them to optimize their supply chain processes.
Innovative models
The evolution of modern business paradigms have changed the supply chain models across the world. The advances in technology has led to supply chain solutions becoming more interconnected and intelligent.
The traditional linear supply chain model is transforming into digital supply networks (DSNs), where functional silos are broken down and organizations become connected to their complete supply network to enable end-to-end visibility, collaboration, agility, and optimization.
While earlier supply chains focused on the availability, movement and cost of physical assets, modern supply chains are all about the management of data, services and products bundled into solutions. With e-commerce becoming the default shopping choice, supply chain solutions have become the differentiator between success and failure
Leveraging advanced analytics, supply chain managers can reduce supply chain costs and use it to improve supply chain performance. It can also be harnessed to develop coherent strategies and make data-driven decisions to improve organizational profitability.
Supply chains have become the key differentiator for businesses especially during highly volatile times. Efficient and effective supply chain solutions can make all the difference between success and failure.
