August 10, 2020
When extreme levels of disruption occur, supply chains immediately launch a survival strategy that tends be focused solely on the enterprise, leaving upstream and downstream trading partners to fend for themselves. Whether scrambling to enable remote work opportunities, implement flexible or staggered labor scheduling, or launch multiple capital preservation strategies, organizations have begun employing a variety of strategies to protect their supply chains and weather the storm.
To ensure the health of the overall supply chain network, the urgency to digitize processes and documents that allow both data and capital to be unlocked has become more prevalent than ever—particularly when a complex number of parties, systems, and document across geographical regions and time zones are involved.
Billions of dollars are tied up in supply chain inventory, but when major crisis occurs, retailers and manufacturers often prioritize the removal of working capital, ultimately placing extreme strain on suppliers that can stretch on for months as organizations wait for disruption to subside. However, access to capital and timely data is essential to long term survival and a thriving economy.
When setbacks occur, stronger collaboration amongst trading partners is a smarter strategy than rushing into panic-instilled overreactions that may result in further uncertainty to supply in the future. A networked, multi-enterprise approach is the natural basis for ongoing resilience: connecting buyers, suppliers and, finance providers on one digital platform where data and working capital is unlocked for the entire supply chain, instead of unilaterally amongst buyers or suppliers.
Digitized documents and processes reduce errors and delays, while enabling additional scalability. Programs are deployed to pay suppliers that help ensure a healthy supply chain, while generating value to all parties involved. As a result, the overall supply chain network has the opportunity to build cohesive resiliency and continuity so that when inevitable disruption occurs, all parties are confident in their ability minimize negative impacts.
To learn more about building continuity with supply chain digitization, check out the complete best practice guide.