January Newsletter | The SourceDay Squad has your January Jumpstart
Happy new year from the SourceDay Squad!?
We’re kicking off 2023 the right way - with a Backstreet Boys Supply Chain Cover Song.
No, we’re not kidding.
To the tune of “I Want It That Way” by Backstreet Boys
We need our buyers
To collab with suppliers
Believe when I say
That I want it that way
But they are two worlds apart
We don’t always get our parts
When I say
That I want it that way
We need supply
Gotta see every ship date
And PO line
Keep our data in good shape
Saving time
Only got it with SourceDay
I want it that way
Five Direct Materials Supply Chain Strategies to Win in 2023
Strategy #1: Use a virtual handshake
Business relationships are becoming increasingly virtual, furthering the need for up-front confirmation of commitment from suppliers. A virtual handshake gives you confidence that your supply is shipped on time and builds trust and accountability into your supplier relationships.
Strategy #2: Keep a close eye on high priorities
At SourceDay, we call this Radar. Whatever system you use, make sure it can identify and monitor high-priority orders. These could include:
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Strategy #3: Diversify your supplier base
Before 2020, few priority suppliers who provided the lowest price or best incentives was standard practice. Three years of constant disruption has created an environment where it makes money sense to invest in multiple suppliers for critical parts so you’re covered when one goes down. Industry leaders also understand the value of diversifying geographically to avoid regional incidents that may affect more than one partner.
Strategy #4: Get a handle on inventory
For the last few years, demand has been high and parts have often been difficult to come by. So manufacturers have committed to holding additional inventory. But as customer demand has tapered to more familiar levels, companies have found their cash affected by overstock. Real-time visibility and accurate data lead to better forecasting and help get your inventory to optimal levels.
Strategy #5: Get real-time visibility with suppliers
Speaking of real-time visibility, you need it. And your suppliers need it. Everyone involved must be able to collaborate in real time so you know when changes are made to delivery dates or quantities. When you get information immediately, you have more time to prepare and pivot your strategies.
The Labor Shortage Is Real
Did you know that the supply chain workforce saw record-high labor shortages in 2022? Take a look at these numbers:
The big question is: Why?? The even bigger question is: How can I avoid this??
We’ve got you. Burnout is one of the main culprits, and we’re going to show you how to tackle it. Our recent webinar with Phillip Pavelka and Mike Romeyn is all about leveraging technology to overcome burnout and dodge the effects of the labor shortage.
In today’s uncertain supply chain environment, building a diverse supplier base is critical to avoiding costly delays on parts and materials. As your supplier base grows, you’ll need to update your systems and processes to keep up. In our recent episode ofWhat the DUCK?!, Cole Perry from Tilson Technology Management, shares how to overcome sourcing struggles and manage suppliers with minimal spending increase.
Virtual Supply Chain Events
All Hands on DUCK?!
That’s right. No agenda, no sales pitch. Just a bunch of supply chain pals letting loose and having a little fun. We’ll make introductions and chat about a supply chain topic so bring your glass and let’s catch a hang.
Women In ERP - Feb. 7 || 12PM Central - Every month, we bring together, educate, and empower women who work with ERP transformations. We highlight their contributions, stories, challenges, and opinions!
Tales of Manufacturing Supply Chain Woes - Feb. 14 || 12PM Central - We’ve put together a top group of veteran supply chain execs who share their mistakes, setbacks, and failures. But that’s not all! They also share their wisdom and how they’ve learned to refine their skills.