In today’s world, supply chains are more important than ever. They’re a key part of any business’s operations, but they can also be one of the most vulnerable areas.
From a business perspective, it’s no longer enough to simply produce and distribute your products. You also have to make sure they get to their intended destination on time, in good condition, and ready to be sold.
That means managing employees, vendors, customers, and more on one platform. And if you’re not doing that well enough, you’ll lose money fast. In fact, 89% of businesses encountered a supplier risk event in the last five years. But not all companies are prepared for this level of risk and complexity. That’s where supply chain risk management software comes in.
SCRM software helps companies manage their supply chains by centralizing every aspect of their operations into one place so they can see where problems are occurring before they happen. This can help them reduce costs by eliminating waste or increase revenue by ensuring that each step in the process works together seamlessly.
Supply chain management is the backbone of manufacturing. It helps companies ensure they have enough raw materials and components to keep their production lines running, and it allows them to plan ahead for growth in demand.
Nearly 36% of small businesses confirmed delays with domestic suppliers in the most recent U.S. Census Small Business Pulse survey. It was conducted from May 31 to June 6. These delays were most prevalent in the manufacturing, construction, and trade sectors as a result of supply chain disruptions.
Such delays cause heavy losses to the affected industries, making them difficult to return to the pre-pandemic levels.
But with the use of SCRM software, manufacturers can reach a new level of efficiency and visibility within their supply chains. The software allows them to track shipments, monitor inventory levels, and understand where money is being spent. They can also use it to identify potential bottlenecks in their production process and fix them before they become an issue.
With these insights at their fingertips, manufacturers are able to make smarter decisions about how they run their businesses, and that’s good for everyone involved.
Retailers have been using supply chain risk management software for years to keep track of their inventory, but the technology is now being used in new ways to help them manage risk and stay competitive.
This is because retailers are facing a number of challenges that can impact their bottom line: changing consumer behavior, new technologies like mobile payments and loyalty programs, and increased competition from online retailers. These factors make it more important than ever for retailers to understand how they’re going to be affected by these changes so they can plan for them in advance.
In a recent survey by Deloitte of 600 executives at manufacturing and retail companies, 48% of the executives stated that during the past three years, there had been an increase in the frequency of supply chain risk occurrences with unfavorable outcomes.
Not only are these interruptions happening more frequently, but they are also having a bigger effect. Nearly 53% of executives reported that the cost of these events had increased over the previous three years, with 13% claiming a significant increase.
Supply chain merchandising and risk management software helps retailers monitor their inventory levels, product prices, sales volume, shipping costs, and other important metrics on a daily basis so they can make smart decisions about inventory levels and pricing strategies before something goes wrong with either one of those things happening.
With this information at hand, retailers know how much stock they need on hand at any given time and when they need another shipment from their supplier so they don’t run out unexpectedly or overstock shelves with excess inventory that has no chance of selling before it expires.
In the automotive industry, supply chain risk management software has become a key part of business operations.
Regarding the effects of COVID-19 on the automotive supply chain and their organization’s risk management procedures, Dimensional Research polled 105 automotive OEM decision-makers for a September 2020 Jabil Special Report titled Supply Chain Resilience in a Post-Epidemic World.
Resilience and risk management were clearly valued by automotive decision-makers when questioned about their supply chain strategy for the upcoming two years. Nearly 58% of people are concentrating on lowering risk in the next two years, while 57% are concentrating on having the ability to react quickly to disruptions.
For starters, manufacturers are now able to share information about their suppliers with each other and with customers in real time. This allows them to make informed decisions about where they source parts from and what their suppliers’ capabilities are.
It also helps them avoid potential problems down the line by providing them with information about trends in the industry and what competitors are doing. This can help them plan ahead for any changes that might occur in their supply chains, such as new regulations or changes in demand for certain types of parts or products.
Finally, this type of software allows manufacturers to keep tabs on all kinds of data related to their suppliers, including shipment details, payment status, and delivery dates, allowing them to more accurately predict when orders will ship out so they can plan ahead accordingly.
With the advent of supply chain risk management software, there are countless ways that businesses can improve their operations. In this article, we’ve highlighted how supply chain risk management software can be used to transform three key industries: manufacturing, retail, and automotive.
Whether you’re a small business or a large corporation, your supply chain is one of your most important assets, and that’s why it’s crucial to protect it from disruption. By using the right tools, you can ensure that your supply chain stays secure from start to finish.