In today’s competitive marketplace, businesses specialising in consumer goods need to strive to seek a balance between expanding their market reach while minimising the effects of bloated inventory, reduced margins and the limits of their working capital for the development of new products.
Today, it is not sufficient to simply find new customers and provide local product variations, typically by developing a network of outsourced manufacturing partners. The higher goal companies must strive for is to ensure that there is ample supply to meet demand for their products.
In order to achieve such a goal, it is crucial for businesses to address four key global supply chain challenges.
The challenge of end-to-end visibility and collaboration in multi-tier environments
In today’s highly volatile and complex marketplace where outsourcing consumer goods has become commonplace, one of the key challenges businesses face is gaining access to actionable, real-time supply chain information. This challenge can be effectively addressed by making forecasts and placing orders at the soonest time possible and forging bi-directional collaboration among partners.
For this task, it is crucial to make pertinent data like actual shipments and receipts readily available to reflect point of sale information and stock-in-channel inventory, giving companies the ability to respond to demand.
The challenge of conflicting KPIs
Integrating data across the entire value chain can provide businesses with unique insights about demand patterns, operations and customer service requirements. In order to truly leverage these, it is vital for key players in the supply chain to be clear about what is being measured, the tools that need to be used and how to interpret the information. Getting everyone in sync requires shared planning, execution process layers and the right business analytics.
The challenge of planning coordination between supply chain tiers
Adequately fulfilling customer orders entails demand planning and effective collaboration along multiple tiers. This ensures that the right materials are delivered where they are needed, and at the right times. But in order to achieve this, there should be access to timely and accurate data for all supply chain parties.
The key to successfully overcoming these four challenges boils down to improving both visibility and connectivity, enabling all parties involved to be on the same page. Today, that often means harnessing the power of the cloud to streamline data collection and process orchestration.