The Essential Building Blocks of Supply Chain Management

After years of chaos, the pendulum is swinging back to favor the basics of supply chain management. This means embracing foundational building blocks of procurement and supply chain management, as well as embracing it, will offer a competitive advantage to their companies. 

They talked about Building Blocks and what companies can do:

  1. Cost Management
  • Discuss plans with suppliers for managing future price increases, justifying old ones, and providing a plan for price reduction
  • Dust off negotiation skills and have a heart-to-heart with suppliers or find more competitive ones
  1. Strategic Sourcing
  • Acknowledge changes in relationships with suppliers since the pandemic and revisit sourcing strategies
  • Be prepared for some suppliers to give you the boot
  • Be proactive and reflect on the present environment in sourcing strategies
  1. Risk Management
  • Mitigate risks by identifying alternative suppliers, ensuring continuity of supply, and implementing contracts and agreements that protect company interests
  • Pay attention to current events and what big companies are doing around supply chain issues in China and Europe
  1. Supply Chain Optimization
  • Optimize the supply chain by identifying opportunities for supplier agreements, managing lead times, and streamlining procurement processes
  • Be ready to respond quickly to changes in the market
  1. Visibility
  • Have visibility across the entire supply chain, including suppliers, inventory levels, and transportation routes
  • Map out all critical supply chains and have contingency plans for disruptions in service, quality, and cost
  1. Collaboration
  • Collaborate between suppliers, customers, and other stakeholders to ensure continuity of supply and minimize disruptions
  • Reintroduce yourself to your supplier community and reset expectations
  1. Compliance
  • Ensure compliance with regulatory requirements and industry standards
  • Brush up on industry standards and changes and ensure supply chain partners are complying with all relevant regulations and standards

Overall, professional procurement is essential in a volatile economy. Leveraging expertise and experience can help organizations navigate challenges and emerge stronger and more resilient.

See the full article and source here:

Similar Posts

Leave a Reply