The fear loitering in the minds of some of the greatest businessmen of the era is related to globalization. Business experts and procurement consultants are constantly afraid of whether the upcoming generation will witness the age of globalization. There are several factors that caused business leaders to think in this way, including the COVID-19 hit and the US-China trade war, inflaming the advent of a more differentiated worldwide economy, hindering the smooth flow of vital and critical goods, and revealing the frailties of geographically distant supply chain operations.
With all these negative possibilities in the head, the manufacturers of the United States are thinking of redrawing their manufacturing plants back to North America. In between all these uncertainties, the only imperative for the supply chain is maintaining its resiliency.
In this context, you will gain insight into three possible ways of building a resilient supply chain.
Procurement can lead the path
Procurement is looked upon as the knight in shining armor. As you can sense, this period is no less than turbulent, procurement consultants are looking forward to using procurement to audit the dangers associated with supply chain operations and gauge the supplier mix. However, organizations can mitigate the risk by changing the sourcing procedures on a wholesale scale. There are many companies who still perform the spreadsheet tasks manually and track their supplier manually. Doing so can prove to be an ineffective way of tracking and managing the procedures when done on a more complex level. And, since procurement requires a highly advanced and automated solution to work efficiently, organizations need to become advanced in terms of the solutions they use to perform their tasks.
Artificial intelligence can give a much-needed boost for organizations who still prefer traditional means of work, which directs you to the next point.
Use of artificial intelligence to illuminate the dark corners
Artificial intelligence is one of the best inventions of science – an invention that allowed organizations to assess risks and mitigate the same beforehand. With the use of artificial intelligence tools organizations can analyze infinite data points, gain insight into end-to-end visibility, benefit from acquiring tangible information, and get in touch with a number of substitute vendors for carrying out the procedures of the existing setup. Furthermore, the critical period calls for a real-time inventory tool to aid companies to prevent replenishment problems and scale the products up or down as per the requirements of the procurement agents.
Use of procurement technologies
Saving the extra time that would have otherwise been spent in submitting and processing the data relating to financial cost is well-served by the expense automated solution. You get the biggest financial advantages when you leverage the data and intelligence with these automated systems. Additionally, the procurement market intelligence tools help in improving the credibility by checking the profit margin closely. A streamlined process for carrying out defined purchases can lead to decreased tail spend but, looking after the contracting and sourcing agents is also essential. Where rationalized processes can decrease unnecessary spending, monitoring the contracting managers can lead to a strategic purchasing program.
These are the three effective ways procurement agents can use to build a resilient supply chain management system and add value to organizations.