As the pressure to create the perfect supply chain continues, it has become apparent that human processing alone won’t be able to keep up with greater complexities and a high volume of orders. Businesses must ensure their establishing a strong relationship with their suppliers, manufacturers and consumers, and are driving continual improvements.
Supply chains used to be very siloed meaning organisations would have different systems and reports for each supplier. Unfortunately, this approach provided no real visibility of what was happening behind the curtain, or between the siloes, and caused confusion for all involved. As more firms have recognised that suppliers are an extension of their in-house teams and should be treated as such, closer relationships have been forming. Technology has helped this process as it’s enabled improved communication and transparency.
To stay ahead of the competition, having excellent supplier relationships that are supported by the right technology will be key. Over the next decade concerns around sustainability are set to drive consumer behaviour, therefore organisations need to keep a close eye on their supply chain, as well as their internal practices to establish a sustainable platform. Establishing a strong relationship with suppliers will make them more willing to give companies improved levels of visibility, helping to refine their end-to-end supply chain processes. Through providing one central location of information, businesses can ensure cross-functional supply teams are using the most up-to-date information to guarantee that they are only placing businesses with approved suppliers. This strategy enables organisations to plan and manage all of their interactions with the suppliers to mitigate the risk of poor collaborative practice and identify opportunities for growth.
The role of Artificial Intelligence (AI) and Blockchain technology in the supply chain is growing. The introduction of blockchain will provide companies with the ability to fulfil vital parts of a product’s journey; this will give them a competitive edge, as they have the insight needed to deliver an immutable, reliable record. And with the addition of AI, these businesses will also be able to process the large volumes of data available, quickly and intelligently. All these factors will be key to unveiling even more essential information about operational performance, providing the opportunity for organisations to reconsider supply chains both tactically and strategically. The extended insights can also drastically reduce the risk associated with embracing new suppliers, while providing businesses with the details they need to reassure consumers that they’re embracing ethical, valuable practices.