January 16, 2018 by Steve Rice
When you think about supplier relationship management, do you think about how many phone calls, emails or other “communications” it takes to coordinate every last transaction to a tee? Or, do you consider the deeper scope of supplier management: the behind-the-scenes coordination it takes to onboard and collaborate with a single supplier? Technically, you should be focused on both, if you want to minimize the IT and administrative burdens of managing both high and low volume suppliers.
IDC predicts that, “by 2020, 80% of supply chain interactions will happen across cloud-based commerce networks, dramatically improving participants’ resiliency and reducing the impact of supply disruptions by up to one-third.” They also noted that “manufacturers are looking to digital platforms as the underpinnings for collaboration and coordination processes, bringing together the essential technology components for the benefit of cloud-based ecosystems — including employees, customers, suppliers, and partners.”
However, if you are like most organizations, the mismanagement of supplier management activities is probably costing you a lot of money and wasted labor right now. It may even be increasing the risk of quality issues and material delays, both of which increase the risk of reputation issues for your organization.
Here’s the thing: You wouldn’t send the same email 80 different times to 80 different people when you could just create a group email and send it at once. So, why map to 80 different supplier profiles when you could simply map once (via an orchestration platform) and connect to 80 different supplier interfaces?
Not only would this orchestration platform serve as an “ERP orchestration engine” on the back-end, but it would be the workflow and messaging engine that your team needs to communicate with trading partners. This orchestration platform would facilitate “information exchange and processes, at scale, simplifying connectivity and ensuring a level of security and trusted business interactions. It would also “be anchored by an open architecture and open access and, in many cases, by an open marketplace to support monetizable information flows and new revenue opportunities.” In other words, it would meet the mission-essential criteria that IDC has defined for “cloud-based commerce networks” and give you the tools needed to dramatically increase supply chain “participants’ resiliency” and reduce “the impact of supply disruptions by up to one-third” per IDC’s predictions.
Everyone from procurement to logistics and even accounts payable would be able to communicate with suppliers without having to pick up the phone, or send an email, at all. They simply login to the collaboration portal from any device to send either a mass communication or individual message to the appropriate party. Quality issues can be resolved immediately, if not completely averted. Responsiveness to shifting market demands will increase. And, IT resources will be more efficiently utilized. In short, everyone in your supply chain will be able to focus on more strategic tasks once the burdensome process of manually onboarding and managing supplier relationships is removed from the equation.
Ready to simplify your supplier management processes? See how the OneSCM Supply Chain Orchestration Platform can ease both your IT and administrative burden immediately upon deployment.