Supply Chain Resiliency and Productivity: What Powers It?
Supply Chain Management is a complex field. We’re always aiming to increase resiliency and productivity by making processes efficient and effective. Nowadays, technological innovation has two primary enabling anchors for success:
Cloud-Based, End-to-End Platforms
Forward-Looking, Advanced Analytics
Both have tremendous promise for supply chain transformation, especially when backed by an expert partner. Curious which platforms and analytics tools get my attention? Let’s take a closer look.
Smoother Processes, Greater Value
I invest in cloud-based, end-to-end platforms that allow nimble process improvements. If an entrepreneur builds a platform that streamlines connections between supply chain components and systems, I want to see what it can do. It’s tough for companies who haven’t updated technology over time to replace entire systems; they have to continue to do business and move product, no matter what.
In supply chain technology, the best platforms have a few things in common:
Easy Implementation
Connectivity/Integration of Disparate System Components
Streamlined Processes
Improved Visibility
No Major System Overhaul Required
I’ve seen some exciting innovations in this field, including procurement sourcing platforms that simplify the procure-to-pay process, the request-for-proposals process, and more. Anything that links supply chain processes (rather than isolating them into silos) has great potential for investors, companies, operators, and anyone keeping an eye on the industry.
It’s true. There’s no silver bullet when it comes to Enterprise Resource Planning (ERP) software; different industry leaders prefer different tools. But with today’s technology, no one needs to change their ERP to access a best-in-class planning or procurement system. They just need a smart, integrative platform that connects sub-systems from one end of their supply chain to the other. Visibility, lean processes, reducing waste (time and cost) and improving outcomes across the board.
Advanced Analytics, Accurate Results
With high-powered supply chain analytics, companies don’t get stuck in a cycle of reacting to changes in demand— they predict and shape them. Advanced analytics effectively integrate the systems used to predict and respond to demand allowing for:
Higher Rates of On-Time and In-Full Service
Right-Sized Inventory
Optimized Cost Structure
How does this play out? For some products, weather can influence demand; for others, the political climate plays a role (i.e. choosing a country of origin for raw materials). Whatever the factors shaping product demand, leading supply chain analytics tools model conditions and scenarios (“what-ifs”) and project their impact on decision-making. These predictions allow companies to plan inventory effectively. Think of inventory like cholesterol: we want to increase good inventory, and lower bad inventory, whenever possible.
“Good [inventory supports] business operations effectively. It helps a company fulfill customer demands, maintain smooth inventory flows, and keep operations running efficiently. For example, a retailer that keeps the right amount of seasonal clothing in stock to meet holiday demand is using stock effectively. Bad [inventory], on the other hand, disrupts business. This could be excess finished goods sitting in a warehouse without a buyer, or an unnecessary surplus of materials that take up space and tie up cash. Too much bad stock can lead to [greater] waste, increased costs, and lost opportunities.”(Source: Demand Driven Tech)
The smarter the analytics, the more likely inventory is accurate (resulting in more good inventory than bad). The more good, accurate inventory moving through it, the “healthier” the supply chain. Companies aren’t the only ones who benefit. Supply chain analytics tools represent a great opportunity for investors: build your portfolio with confidence, backed and empowered by cutting-edge, sophisticated technology; from data to information, from information into insights, from insights into action, from action into better outputs.
Moving Forward Together
When powerful technology kickstarts supply chain processes (i.e. planning and sourcing), resiliency and productivity flourish. If you’re an entrepreneur with fresh ideas for advanced, predictive analytics, cloud-based enabling platforms, or other innovative tech solutions for companies, suppliers, and customers, I’d love to hear more about your vision. If you’re looking to invest in tools that transform the market for multiple industries, exciting opportunities await. Let’s connect to see what’s possible.
