What are the Best Technologies to Improve Your Sourcing Strategy?

In recent years, supply chain and procurement professionals have struggled to steer their organizations through consecutive disruptions. Despite their best efforts, current events and market dynamics have resulted in difficulties managing suppliers and sourcing the vital materials required for their products.

Sourcing strategically and more effectively has been hampered by a number of issues in the last few years and some of them include:

· ? ? ? Lack of visibility to key data such as supplier risk and performance, forward pricing, market index impacts, demand fluctuations, available supply and supply chain constraints in the market

· ? ? ? Poor communication and collaboration across the enterprise related to sourcing activities

· ? ? ? Challenges in managing and meeting sustainability and compliance goals/requirements

· ? ? ? Monitoring and mitigating risk associated with supply, suppliers and the supply chain networks.

In 2022, an increase in demand even amid record-high inflation, the Russia-Ukraine war and other disruptions amplified these problems, and they led to many organizations being beset by a demand and supply imbalance.

While the inflation this year is expected to rise 6.5%, it is expected to hit 3.5% in the US. Consequently, all the components of products on the shelves have become more expensive, leading to intense cost pressure while also highlighting the importance of strategic sourcing. Moreover, with fears of an upcoming recession and volatility in commodity prices, companies must have a strategy in place to manage sourcing events, incorporating greater visibility as well as forecasting and supplier evaluation capabilities. This way they can introduce at least some predictability into future sourcing and make more informed decisions.

One way to keep price volatility in check is by transforming the supply chain end-to-end without incurring additional costs to its products. For example, PepsiCo Inc.’s new strategy to compensate for higher transportation costs is by using less water in its factories. Additionally, PepsiCo Inc. Chief Executive Ramon Laguarta comments that large companies have a responsibility to adopt new technologies to make their products more sustainable–and that they can do it without increasing prices for consumers.

One way organizations can move forward and get ahead of market forces is by adopting a sourcing strategy that provides real-time visibility into categories, suppliers, cost, risk and other compelling factors that are critical for sourcing. Organizations can best leverage these capabilities through digital transformation that employs new technology platforms employing tools such as AI and machine learning.?

To streamline the supply chain, these systems should integrate with upstream and downstream business management systems to centralize and manage data for end-to-end visibility through one platform. Moving to an interconnected and agile supply network that prioritizes resilience and security is also important for future success, as collaboration with the entire supplier ecosystem is crucial.

Implementing such a solution will enhance your organization’s cost efficiency, sourcing efficiency and agility while significantly reducing associated risks. As a result, the supply chain becomes more intelligent, resilient and sustainable.

LoadProof is a SaaS that automates your photo-documentation processes in the warehouse. Our solution will help you solve many of the sourcing issues mentioned above. We have been saving logistics businesses cut costs by $20,000 per month across USA since 2018. It has been a tremendous success among warehouse personnel and is recommended by many as a supply-chain solution for improving visibility.

Find us here: https://feature.loadproof.com

Puga Sankara