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Want to Reduce Supply Chain Risk? Start by Collaborating.
Organizations must look beyond their four walls and collaborate with suppliers across multiple tiers to reduce risk.
Published: July 11, 2023
Supplier collaboration has emerged as a critical factor for operational efficiency, resilience, and innovation in supply chains. Organizations are investing in strategies and technologies to foster collaboration with suppliers across multiple tiers. In this fireside chat, Stephan de Barse and Vivek Luthra discussed the growing importance of supplier collaboration and highlighted strategies, technologies, and best practices for successful collaboration. Here are the top 5 takeaways from the conversation:
1. Supplier Collaboration is Essential for Resilient Supply Chains:
The first key takeaway is that supplier collaboration is crucial for building resilient supply chains. In today’s interconnected supply networks, disruptions often occur in the lower tiers of the supply chain. Leaders are investing in digital twin capabilities and end-to-end visibility to proactively manage risks and understand the impact of disruptions. Supply resiliency is directly linked to revenue and profitability, making it a top priority for organizations.
2. Innovation Thrives Through Supplier Ecosystems:
The second takeaway emphasizes that innovation is increasingly driven by supplier ecosystems. Top-performing companies recognize that their suppliers’ innovation teams are often much larger than their own. By fostering collaboration and creating an ecosystem of innovation, businesses can tap into the expertise and creativity of their suppliers. This collaborative approach to innovation is a compelling reason for organizations to invest in supplier collaboration.
3. Collaboration is Key for ESG Reporting and Sustainability:
The third takeaway focuses on the growing importance of collaboration for environmental, social, and governance (ESG) reporting and sustainability efforts. As organizations move towards supplier-based emission calculations and better visibility into their supply chains, collaboration with suppliers becomes crucial. By working together, companies can gather accurate data on emissions, improve sustainability practices, and meet ESG goals.
4. Multi-Tier Visibility and Connected Planning are Critical Challenges:
The fourth takeaway highlights the challenges organizations face in achieving multi-tier visibility and connected planning. Many companies struggle with disconnected systems, limited data sharing, and a lack of visibility into lower tiers of their supply chains. To address these challenges, companies are investing in technology solutions that enable collaboration, automate processes, and provide comprehensive visibility into their supply networks. These solutions help bridge the gap between procurement, supply risk management, and supply planning functions.
5. Overcoming Barriers to Supplier Collaboration with Technology and Data:
The fifth takeaway focuses on the barriers to supplier collaboration and the role of technology and data in overcoming them. The current landscape is filled with disconnected systems, manual processes, and data limitations. Organizations are leveraging advanced technologies such as AI, data analytics, and knowledge modeling to streamline collaboration, automate tasks, and gain deeper insights into their supply chains. By removing data crunching work and improving collaboration workflows, companies can enhance productivity, increase visibility, and make better-informed decisions.