Are Bigger Supply Chains Better?
Today’s supply chains are more global, more complex –and simply bigger –than ever before. But, does that mean they are better?
Not necessarily, according to Thomas Wailgum at CIO.com.
In his article, Wailgum points out that expanding supply chains make visibility increasingly difficult, and as he says, “ That visibility is key.”
I agree. Most companies today are struggling to keep up with their sprawling global supplier networks. They still need to take the first, fundamental steps to improving visibility and creating a more holistic approach to supplier relationships. They still need to automate supply chain processes.
A Supplier Information Management (SIM) solution improves how companies support a wide range of supplier management initiatives, including eProcurement/supplier enablement, sustainable/green supply chain programs, and compliance/credential/certification management. It also drives down costs, simplifies processes, eliminates silos of information housed in disparate systems throughout the organization, and mitigates risk.
Right now, when I talk to companies about supplier information management, there’s often a significant disconnect between the level of concern and the level of action. For instance, in a recent survey of financial, procurement and risk executives who participated in Aravo’s supply chain risk webinar series, we found that:
- Even though well more than two-thirds (71.4 percent) of those polled said that their biggest concern continues to be risk of supplier financial viability, more than half have less than 20 percent of their supplier base under active risk management.
Until that disconnect is resolved –until companies actually do the work of updating their supplier information management systems – “bigger” will never equate with “better.”
