By Kevin Young, Chief Marketing Officer
Digitalizing supply chain issue management with a workflow-driven, multienterprise collaboration solution enables supply chain teams and their upstream and downstream partners to capture, analyze, resolve, correct, and prevent supply chain exceptions.
Supply chain issue management is a multienterprise business process that has not been digitalized in most organizations. Dealing with issues like late shipments, material shortages, changes in production quantities and damaged goods is often a firefighting exercise managed and resolved using unstructured and decentralized manual tools like phone calls, emails, video conferencing, and spreadsheets. As a result, senior leaders often lack the visibility to see and respond to threats in the supply chain, and much of the information needed to drive supply chain performance improvements is lost or never collected. These issues can escalate into supply chain disruptions that drive up the cost of goods sold (COGS) and reduce on-time, in-full delivery (OTIF).
A recent survey of more than 200 supply chain leaders found that the current process for managing supply chain issues is causing serious business challenges.
- 51% identified the lengthy response/resolution process for supply chain issues as a significant risk to supply chain performance.
- 51% reported that recurring issues with the same suppliers are causing serious production delays.
- 43% said that the lack of cross-organization and real-time issue visibility was significantly impacting supply chain execution.
The survey also revealed that most supply chain management teams lack a comprehensive view of all issues across the organization, the status of their resolution processes, and their potential impact. Leadership teams rely on ad hoc reports from various sources that are managed and escalated via email with no real visibility into past trends or individual steps being taken to resolve issues. And there is no visibility into potential disruptions or risks created as these issues go unresolved.
A better way to resolve supply chain issues and prevent disruptions
Digitalizing supply chain issue management with a workflow-driven, multienterprise collaboration solution enables supply chain teams and their upstream and downstream partners to capture, analyze, resolve, correct, and prevent supply chain exceptions. Dashboards provide actionable visibility to managers and executives across the end-to-end supply chain. Issues can easily be captured, monitored, and grouped by priority, due dates, issue resolution status, sites, and partners. Issues can be analyzed and the proper teams of subject matter experts can be assigned. And supply chain partners can collaborate more effectively on supply chain issues using a single source of shared truth. This leads to faster issue resolution times and a significant reduction in the total number of incidents.
With the TraceLink digital supply chain issue management solution:
- Dashboards provide actionable visibility at all levels of the organization and to end-to-end supply chain partners.
- Teams can drill down from dashboards into individual incidents, assign them to the right team of subject matter experts, and start the resolution process.
- Five pre-built incident management processes and a change request process ensure you can get started immediately.
- Issues of all types can be easily reported by employees as they are occurring.
- Supply chain partners can report issues themselves and collaborate more effectively on exceptions using a single source of shared data.
The benefits of digitalizing supply chain issue management
Companies that have digitalized supply chain issue management have seen significant supply chain performance improvements:
- 65% reduction in days to close an incident
- 50% reduction in repeat deviations
- 97% reduction in manufacturing disruptions
- 82% improvement in delivery performance
Companies can lower the cost of goods sold (COGS) by reducing fees associated with expediting and express shipping, overtime, scrap, rework, and material costs. On-time, in-full (OTIF) performance can be improved by decreasing order fulfillment cycle times. And revenues can be maximized due to fewer late deliveries and missed shipments, improving customer satisfaction and ultimately revenue.