2021 was a rollercoaster for every business. But, 2022 started looking more optimistic with CSCOs preparing for uncertainties. Their biggest asset was the reinvention and realignment of existing systems.
CSCOs have seen more disruptions in the past two years, from global trade emergencies to resource shortages, natural disasters, and unpredictable national events. As a leader in the food ecosystem, there has been a transitional phase for businesses where several layers have unfolded- from inventory management to final delivery.
The next three to five years are crucial for supply chains, where reinvention will play a major role. A crucial element that ties the food ecosystem together is the presence of strong partnerships from start to end.
Per reports, fully-integrated companies outpace other businesses by at least 20%. This gives them more space to experiment, relaunch, introduce new products and streamline their workflow. A seamless integration with existing systems is possible when we shift our focus to three key areas.
Key Focus #1: Paying attention to the importance of seamless integration in a demand-driven market
We have observed that companies that switch from a pen-and-paper inventory system to more integrated systems see a 25% gain in productivity. But this is only possible by aligning and redefining existing supply chain partnerships.
But when it comes to integration, many companies fall back on integrating their systems with their existing ones. What it does is- affect decision-making, impact the workflow, and slow down the outcome.
What can you do to avoid this?
You can revamp your existing systems without a huge investment by making small changes at every step to create a bigger outcome. It will allow you to-
- Enable quick data analysis and decision-making– The focus will be on processing data at every supply chain level and predicting the outcome before any impact.
- Lean and agile– Having a people-heavy team without focus adds to the confusion. A mix of human-to-machine collaboration will make systems leaner and more agile. This is where a meaningful supply chain partnership realignment becomes a forerunner.
- Changing demand- You can expedite your new demands by upgrading your existing supply chain partnerships with better technology. It will give you more visibility and help you predict changing demand patterns. Nearly 70% of companies need full visibility into their supply chains, making them lose out on precious time and revenue.
These shifts will help you build better resilience in the BANI (Brittle, Anxious, Nonlinear, and Incomprehensible) world, where disruptions and constant evolution are key.
Key Focus #2: Process to identify and integrate systems and technology
Your business is demand-driven, but the key lies in understanding that data integration at every level of SCM is crucial for growth.
When do you pick a point to identify and integrate system processes and technology?
- Identify & Align- To accelerate supply chain processes, it is important to identify the specific areas you need to upgrade existing systems. 80% of enterprise business operations leaders say data integration is critical to ongoing operations. Aligning data at every step of the supply chain process will prove beneficial.
- Collaborate & Manage- Supply chain leaders must execute in near real-time with accurate and consistent decisions to deal with market volatility. CSCOs must build robust supply chain partnerships to access real-time data for analysis and decision-making and improve capabilities.
Key Focus #3: Get assured outcomes
Supply chain leaders need help to afford to let disruptions impact their business outcomes. To mitigate the risks, there is a need to integrate existing supply chain systems successfully.
To create value for businesses, prioritizing operational excellence is a must. Today, nearly 67% of enterprises rely on data integration to support analytics and BI platforms.
What will seamless integration with existing systems do?
- Create visibility- End-to-end (E2E) visibility across all touch points between QSRs, warehouses, transportation, retail outlets, and businesses. Upgrading systems will enable CSCOs to keep track of the exact flow of data and information across all channels. There is no need to invest heavily in new systems, but add a few key touch points in existing supply chain partnerships.
- Avoid data redundancy and optimize working capital– Data redundancy can lead to increased cost implications for businesses. The seamless flow of data, analysis, information, and insight will allow supply chains to optimize their working capital.
- Prepare for uncertainty- Real-time data and analytics will lead to quick decision-making, enabling CSCOs to prepare for uncertainties at all stages.
- Reduce lead time and make inventory available at all times- When you know the exact requirement, it helps you considerably reduce the lead time. Realigning your supply chain partnerships with technological advancement will give you clarity of your inventory at all times. Make it available, at the right time, at the right place, and in the right amount.
- Innovative and futuristic SC- CSCOs are paying more attention to ESG and data privacy to avoid workflow discrepancies. From customers to stakeholders, there is tremendous pressure to address sustainability. Real-time data will play a big role in avoiding wastage during the entire SC lifecycle. Introduce new sustainable technologies and materials early to hyper-scale business and revenue.
Seamless integration in existing systems will help set the pace to expand horizons, increase profitability, and become more customer-centric. You combine strategic supply chain partnerships to strengthen your existing systems and seamlessly integrate them with new ones.