October 6, 2020
Digitizing core processes in combination with trading partner connectivity, helps supply chain leaders increase responsiveness and adaptability. As more organizations look to remove manual tasks from their operations, the ability to update suppliers and trading partners in real-time allows supply chain processes to become more efficient. Here are three scenarios where moving to a network platform have helped companies generate additional value across their supply chain.
- A footwear provider experiencing rapid growth realized spreadsheets and manual processes were no longer sufficient to support increase demand and future progression. The brand digitally transformed sourcing, procurement, accounts payable, finance, and supplier management processes to support scale. The ability to digitally collaborate on orders, invoices, settlements, and ASN creation was foundational to the transformation. Witnessing 4X growth, the company today has 99.8% invoice accuracy and spends approximately 30 minutes per day processing invoices.
- A major global sports apparel brand sought to solidify the health of its supply base by ensuring access to capital. Utilizing a multi-enterprise network allowed the company to connect all parties and digitized document flow, enabling automated financing and settlement. A diverse portfolio of finance providers was plugged in to create a significant pool of credit and programs to meet varying needs. In doing so, the brand was able to enhance the financial health of its suppliers while deploying its own capital preservation program.
- An outdoor gear manufacturer having automated its PO, invoice, and settlement processes to generate efficiency was seeking further avenues to improve margins. It leveraged existing transaction data to auto-populate ASNs and packing and shipping instructions, enabling direct shipments from the factory. As a result, plans for new distribution center were deemed no longer necessary due to increased efficiency.
Moving forward, supply chains need agility to accelerate decision-making, respond to consumer demand and keep suppliers funded. Elasticity and agility in the supply chain, including internal sourcing and finance teams, will be critical.
Future supply chains must adapt to different methods to source goods, fulfill, and facilitate payment across the supply chain, such as:
- Understanding risk exposure across the supply network
- Rotating supply base to deal with regionalized disruptions and other unforeseen events
- Ensuring liquidity across suppliers to maintain assurance of supply
- Payment straight through processing
A cloud-based multi-bank platform can digitize commerce and make capital available to supply chains through innovative programs. Digitization of documents, data, and capital raise the liquidity and scalability of the supply chain. When a network of finance providers has visibility into transactions, they are more willing to finance trade, and everyone benefits.
Additionally, once manufacturers, retailers, and their trading partners are connected, they start the journey to real-time, end-to-end visibility of data and insights concerning supply chain activity across the entire network.
Visibility and connectivity are the first two layers of digital transformation. In addition, companies require predictive and actionable intelligence from those insights. You need to understand the impact of disruptions and what actions to take. For instance, a supplier of an essential part has slowed production, understanding the impact of that loss of production and other options for sourcing those parts can prevent a service-level impact.
In this scenario and the hundreds of others that are playing out as a result of any disruption or black swan event, visibility is the first layer of protection. On top of that layer is intelligence to not only see, but to deliver swift data driven decisions.
AI technology helps provide predictive alerting to disruptions or potential new opportunities, as well as decision support, so organizations can optimally respond and ensure supply chain continuity.
To learn more about building continuity with supply chain digitization, check out the complete best practice guide.