{"id":8657,"date":"2020-09-03T09:03:46","date_gmt":"2020-09-03T16:03:46","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=8657"},"modified":"2020-09-03T09:29:59","modified_gmt":"2020-09-03T16:29:59","slug":"integrated-supplier-management-boosts-performance","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2020\/09\/integrated-supplier-management-boosts-performance","title":{"rendered":"Integrated Supplier Management Boosts Performance"},"content":{"rendered":"

[vc_row][vc_column][vc_single_image image=”8658″ img_size=”full”][vc_column_text]The <\/span>disruption caused by the COVID-19 pandemic<\/span><\/a> has certainly increased the awareness among manufacturers for improved communication and collaboration with suppliers. In the past months, many suppliers have seen operational disruptions due to new ways of working, temporary factory closures, unaccustomed safety-hygiene measures and other factors that impact manufacturers. As a result, improved integration and connectivity between manufacturers and suppliers is increasingly important to avoid premium freight costs, missed shipments and subpar supplier relationships.\u00a0\u00a0<\/span><\/p>\n

Manufacturers require<\/span> integrated supplier management<\/span><\/a> to ensure the timely flow of goods and information. Manufacturers that rely on suppliers around the globe to deliver innovative products, drive critical supply chain processes and ensure a positive customer experience need access to <\/span>real-time data<\/span><\/a> from multiple sources. And research shows that supplier collaboration delivers benefits for manufacturers. One<\/span> McKinsey survey<\/span><\/a> highlighted that companies which regularly collaborated with suppliers produced higher growth, lower operating costs, and greater profitability compared to their industry peers\u00a0<\/span><\/p>\n

Many manufacturers still fail to understand the role supplier integration plays in delivering supply chain process and performance improvements. Buyers and other professionals frequently express a desire for a single source of truth that allows manufacturers and suppliers to make decisions based on the same set of information. This is unlike the scenario where manufacturers rely on manually intensive efforts to exchange procurement information or the case where supply information resides within multiple disparate systems across the manufacturer and supplier. Can you imagine the business benefits from both parties, leveraging the same information, answering questions like: How quickly can the supplier respond to this demand change? Can we quickly divert an inbound shipment to another facility? Have we received an ASN? What is the invoice status? Can the supplier produce a newly designed part in the quality and quantity needed?<\/span><\/p>\n

Supply Risks<\/span><\/h2>\n

The global and disruptive nature of sourcing makes effective procurement management with suppliers more complex. Procuring raw materials and goods from international suppliers involves working in multiple languages and meeting local regulations, resulting in longer cycle times. Relying on manually intensive processes increases risk and the likelihood of stock outages. Multiple risks exist for manufacturers relying on manual and outdated supplier collaboration processes:<\/span><\/p>\n