Proactive steps to diversify their supply chain , renegotiate contracts , find alternative suppliers , and implement cost-saving measures such as automation and process improvements would be subsequent phases of this transformation based on every organisation ’ s unique situation and needs .
The role of data + analytics + AI and technology paired with good old supply chain thinking will help organisations unlock their true procurement potential .
Q . CAN YOU SHARE ANY REAL-LIFE EXAMPLES OF HOW SUPPLY CHAIN ANALYTICS HAVE HELPED COMPANIES TO MANAGE DEMAND VOLATILITY AND IMPROVE THEIR PROCUREMENT PROCESSES ?
» A leading toy manufacturer had an interesting problem where new product demand was highly unpredictable with poor accuracy leading to high demand planning bias , and excess finished goods inventory .
For a toy to be launched 6 months from now , the procurement order for parts had to go out today , and the process was entirely based on heuristics . The power of supply chain analytics with internal and external data factors , coupled with our consulting prowess , helped the organisation bring down the predicted demand variance , provide improved explainability to the factors affecting demand , and allowed the procurement team to have higher level of confidence in the BOM volumes required .
Q . HOW HAS THE PANDEMIC AFFECTED THE SUPPLY CHAIN , AND WHAT STRATEGIES CAN PROCUREMENT PROFESSIONALS ADOPT TO MITIGATE ITS IMPACT ON THEIR OPERATIONS ?
» The pandemic has caused disruptions to global supply chains , leading to shortages of critical goods and services . These disruptions , as a consequence , led to increased costs for raw materials , transportation and logistics .
As the pandemic caused a wave of remote work , consumer behaviour and demand patterns changed significantly , making it a challenge for procurement professionals to truly assess and anticipate these new patterns .
However , procurement professionals , if they develop data-driven contingency plans , can achieve insights into factors that can impact the supply chain . Again , it goes back to that connected view approach that we have developed for our clients .
Q . WITH THE SUPPLY CHAIN BECOMING INCREASINGLY DISCONNECTED , WHAT STEPS CAN COMPANIES TAKE TO ENSURE TRANSPARENCY AND VISIBILITY ACROSS THEIR SUPPLIERS AND PARTNERS ?
» Companies need to be able to view demand forecasting , supplier management and logistics management
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