Boost Visibility by Expanding the Linear Supply Chain Model

 

    There was no supply chain spared from coronavirus impacts. Organizations continue to face difficulties in production, sales, storage, and demand services, from independent shops to multinational companies, as well as with their general financial well-being and that of their corporate partners.

    The conventional, linear supply chain model is a contributing factor to this disturbance, where each phase depends on the one before it. At one point, the inefficiencies result in a cascade of inefficiencies down the road. And since customers and sellers are situated at either end of the line, it's easy to see how communication breaks down, and visibility from the end to the end is almost impossible.

    The subsequent reactive and uncoordinated reaction ensures that procurement departments are overwhelmed to identify precisely which vendors, locations, components and goods are at risk. But finding new sources of supply in a timely manner is exceedingly difficult.

The network model

    Our global, joint experience with COVID-19 made it painfully clear that companies need to evolve in a complex, interconnected supply network beyond the conventional, linear supply chain model.

    Unlike conventional supply chains, supply networks move away from single point-to - point structures to a multi-to-many system that requires visibility at 360 degree.

    Businesses become a customer and a seller until linked to a network, and they gain broad exposure in their trading partners' integrated activities. In addition to helping businesses to more quickly detect evolving trends or problems, having a network often helps them to connect with potential partners, boost cash flow, create innovative technologies and promote sustainability.

    Connecting to a network that involves suppliers, distributors, fulfillment centers, factories, logistics providers, and retailers add to the overall capacity of a company to operate agilely to cope with unpredictable circumstances.

Resiliency, profitability, sustainability

    Not only are supply networks vital to an organization's overall success, they also play a crucial role in promoting three main foundations of business: stability, growth and sustainability.

    Recent research suggests that firms with robust supply chains are growing stronger, so they can react rapidly as demand changes in the market. Digital transformation is crucial for companies as they emerge to survive potential challenges and transition to recovery. Supply networks provide greater coordination among trading partners and help organizations make real-time decisions.

    Resilience, in particular, plays a key role in an organization's total performance. Enterprises running secure, integrated supply chains are producing expanded sales. The quality which a digital supply network provides results in reduced congestion and optimum performance.

    But it's just the start of innovation and openness. When market leaders think of the network as a profit-driving mechanism through a network of business partners, they will find that the ROI manages itself.

    Businesses should take into account environmental goals — not only through their enterprise but also across their supply network. In addition to generating long-term value, sustainability will promote creativity and new ways of thinking that can eventually contribute to higher sales, improved consumer relationships, and positive brand attitudes.

    By leveraging technologies to identify inefficiencies and risks, businesses may dive into their vendors and manufacturers' supply chains, prioritizing those who still value sustainability.

Improve the efficiency with a digital network

    The transition from a supply chain to a supply network should complement the overall strategy for the digital transformation of a company. By using new technology technologies, organizations will stay competitive and scale-up.

    Digital supply networks are designed to forecast failures and reduce risks. They use data mining and automation to ensure a consistent flow of knowledge. It is important to be able to keep pace with fast-moving business trends.