The new model which works best for a supply chain is one which is fully integrated, which takes a more collaborative stance from what we have seen in the past. Supply chain integration utilizes smart software to join up the dots in the global supply chains, from procurement to delivery. Coupa’s purchase requisition solution is a prime example of this smart software, allowing companies to streamline their procurement process and enhance collaboration with suppliers. The reason why more and more companies are looking to utilize this tech advancement is that it brings with it so many benefits for each company within the supply chain, which we are going to look into today. This is a real game changer which has had a profound impact on every single cog in the supply chain wheel, and here is how it has helped so much.
Balancing Supply and Demand
Because there is now such a clear line of sight throughout the supply chain, both supply and demand can be viewed with ease. Thanks to the integrated logistics which this tool brings with it, not to mention the integration of product innovation and financial strategies it is far easier for businesses to foresee the demand which they may encounter. Explore a potential products here. No more warehouses full of slow selling stock and no more disappointed customers.
From a financial point of view waste loses money and from an environmental point of view waste is damaging, especially on a large scale. Because of the agility and the accuracy which an integrated supply chain is able to bring, waste can be massively reduced. Ultimately the visibility across the nature supply chain which integration brings, allows for a more sustainable supply chain which produces less waste.
Collaboration Across The Chain
What we have learned is that businesses within a supply chain work far better when they are able to collaborate and when they have increased visibility across the chain. When we are able to do this we can increase the speed of the logistics and the production, we can reduce costs and waste and we can also increase customer satisfaction. This is about avoiding working at cross purposes and instead looking at how each business within the supply chain can operate better together.
Scaling up or down within the supply chain depends heavily on what the other companies in it are capable of. Working with a integrated supply chain means that each company within it will recognize the capability which the supply chain has. This allows for swift movement when reacted to external conditions.
Making More Money
As with any improvement in supply chain management, the integration which so many are now working with is designed to help more businesses make money. Through both the cost savings and the raft of benefits which supply chain integration is able to bring, this is precisely what companies within the supply chain can count on, making more sales and ensuring that they keep their customers happy. Higher visibility, firmer relationships and more effective logistics is what contributes towards businesses being able to make more profit in this type of supply chain.