Supplier Sourcing - Quickly Switching Suppliers During Global Conflicts
The only thing predictable about global business today is its unpredictability. As international business evolves dizzily, supplier sourcing is crucial during global events and conflicts. Without suitable suppliers, production comes to a halt - along with profits.
Recent global events proved the importance of diversifying your supplier base. Natural disasters, international conflicts, and pandemics lead to business interruptions, forcing some companies to close their doors forever.
With globalization in sourcing, procurement faces challenges such as maintaining supplier relationships and reducing risk. In addition, sourcing is now specialized, and there is often a struggle to find the right solutions. Consider the factors to review when switching suppliers and how automation helps streamline the process.
Rapidly Respond to Change with Agility
Over the past few years, organizations learned the importance of agility and flexibility in a constantly changing world. In a fiercely competitive global marketplace, management had to respond rapidly to global change - or risk being left behind.
Automation makes switching or adding suppliers faster and more efficient with real-time data for comparisons and vetting. Additionally, automation puts financial updates at the team’s fingertips for the latest data. As a result, changes can be made quickly to accommodate production schedules.
For some companies, retaining inventory is a way to stay ahead of production. However, others may not have the facilities. Diversifying your supplier base ensures all components are available regardless of international events. Split orders keep both reliable and cheap suppliers onboard to ensure production moves forward. Automation simplifies and streamlines processes for optimum agility.
Transparency for Superior Supplier Selection
Transparency is the cornerstone of superior supplier selection through intelligent investigation and comparison of the terms. Automation provides real-time reporting for critical insights about supplier activity and performance. In addition, automation supports rapid changes with quick vetting and onboarding processes if issues arise.
Factors to consider when switching suppliers include pricing, design, delivery, production capacity, and business risk. Also, using a single source puts organizations at risk during global conflicts. If a company cannot get supplies and raw materials, production stops. While loyalty to one or two sources often means getting discounts or other advantages, a failure to diversify leads to severe risks during global conflicts.
Manually comparing supplier terms is a tedious and time-consuming process. Fortunately, automation makes supplier selection efficient, accurate, and straightforward. With just a few clicks, everyone can see what suppliers offer to make fast and educated decisions when it matters most.
Examine Current Processing Systems
The recent past proves the need for businesses to be prepared for any global occurrence. Additionally, more people are working remotely and prefer having flexibility. As a result, cloud automation is necessary to support remote and in-office workers in a secure and collaborative environment.
Examining current processing systems ensures switching suppliers is simple when the time comes. In addition, eliminating manual processes and partial automation ensures the team can work anytime and anywhere, regardless of worldwide events.
Investing in automation keeps companies competitive and productive under all circumstances. While global crises may be inevitable, management can avoid business interruptions by implementing total automation solutions. For example, when procurement and accounts payable are one hundred percent online, everyone works together seamlessly from any location.
Establish and Maintain Strong Supplier Relationships
While switching suppliers quickly is crucial during global conflicts, the next step is establishing and maintaining strong supplier relationships. Automation provides fast vetting and onboarding to start working with suppliers as quickly as possible. Instead of waiting weeks, communications and orders begin shortly after the initial contact.
Implementing automation solutions also helps maintain good relationships with suppliers. For example, eliminating manual processes means timely payments to ensure suppliers continue to send materials. Additionally, real-time data reveals inconsistencies before they become major issues with suppliers.
Both global conflicts and switching suppliers are unavoidable, but automation helps eliminate the pain points associated with both. Plan for tomorrow by adopting total automation today to streamline processes, improve efficiency, and boost the bottom line all the time.