Monitoring a supply chain is a never-ending task. With the rapid rate of change brought about by the coronavirus there are a huge number of factors for business leaders to consider. Coping with fluctuating demand and supply issues has been a priority and Brexit continues to add further complications for many.
Understanding what your key supply chain risks are by doing a supply chain risk assessment is the first proactive step that can be taken to making your supply chain more resilient. Monitoring those risks will ensure business responses are quick and effective and technology can be a massive help in monitoring the elements of your supply chain that worry you the most.
Monitoring the financial health of your key suppliers
One of the most pressing concerns for many businesses is the impact that one break in their supply chain could have on their operations as a whole. Doing a supplier risk assessment and checking the financial stability of key new suppliers before engaging with them, together with monitoring the financial health of your existing key suppliers, can minimise the risk of a sudden disruption.
Identifying when suppliers may be facing difficulties themselves, will enable you to build up short term ‘buffer’ of stocks or start to move towards alternative suppliers to protect against possible supply issues.
Consider automated monitoring of credit information. Products like Tracker provide key financial information on UK companies and some international companies, at the touch of a button, enabling you to see and monitor the financial position of your suppliers.
Manage and optimise your supply chain through one single application
In a world in which operational disruption is becoming increasingly normal, many businesses are turning to cloud ERP systems to improve business efficiency and reduce wastage of time and resources. Imagine a world in which your primary supplier can’t meet your demand for an order but your ERP supply chain system flagged the risk and gave you the option to quickly engage with the alternate supplier of your choice.
Consider ERP to avoid operational disruption
ERP systems such as NetSuite help to drive efficiency throughout supply chains but can also be used to spot key supply chain risks through demand forecasting and risk management tools. If this is done well, it will enable faster decision making and a heightened control of operations for business leaders.
