{"id":9578,"date":"2020-12-08T06:33:18","date_gmt":"2020-12-08T06:33:18","guid":{"rendered":"https:\/\/ca.syspro.com\/blog\/building-a-robust-supplier-base-to-secure-your-supply-chain\/"},"modified":"2021-03-04T14:51:20","modified_gmt":"2021-03-04T14:51:20","slug":"building-a-robust-supplier-base-to-secure-your-supply-chain","status":"publish","type":"post","link":"https:\/\/ca.syspro.com\/blog\/supply-chain-management-and-erp\/building-a-robust-supplier-base-to-secure-your-supply-chain\/","title":{"rendered":"Building a Robust Supplier Base to Secure your Supply Chain"},"content":{"rendered":"

Following a six-month stint in a dining-room chair, glued to Zoom or my cell phone, I am now free. Now on lockdown level 1, I have managed to visit the office, had meetings with real people and I have even had my first beer during a bush break.<\/strong> While I bask in my newfound freedom, I can\u2019t help but wonder why costs rose during the pandemic for certain industries. Could it have been unscrupulous suppliers?<\/p>\n

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Finding the true gluttons<\/strong><\/h2>\n

For most, the weekly grocery shop\u00a0has\u00a0often\u00a0been\u00a0the only source of entertainment, until\u00a0reaching\u00a0the till.\u00a0Costs for the weekly grocery shop were unreasonably high.\u00a0At times I was looking at a 50% increase.\u00a0Many stores placed direct blame on the supplier, yet if you\u00a0take a\u00a0supply-chain farm-to-fork approach you\u2019ll find that cows haven\u2019t stopped producing milk because of Covid-19.<\/p>\n

My local beverage store also took a chance. Instead of adding 1% for tax after the budget to a bottle of wine, they added 20%. It\u2019s a great business, great people, but what does that do for loyalty?<\/p>\n

At the opposite end of the spectrum, a top retailer (the star retailer for my family I might add) offered easy online ordering, reliable SMS notified home delivery service, and value for money even considering new DC order-picking and other processes and thermal box costs \u2013thank you.<\/p>\n

Using technology to\u00a0secure the supply chain<\/strong><\/h2>\n

While the pandemic left many businesses vulnerable, with no choice but to accept the inevitable fate of poor service and shoddy supplier behavior, as a SYSPRO man, I see many places for Business IT to help.<\/p>\n

1. Procurement\u00a0<\/strong>
\nSupply Chain companies need to differentiate\u00a0between\u00a0preferred-suppliers with\u00a0ethical\/appropriate practices from the \u201cnot so healthy\u201d.\u00a0Technology can\u00a0help businesses\u00a0and reduce risk by helping\u00a0to identify those preferred suppliers.<\/a><\/strong>\u00a0Embedded AI can even assist businesses to predict\u00a0when deliveries may be late.<\/p>\n

2. Sales Orders<\/strong>
\nThe rise of global lockdowns resulted in a\u00a0bigger\u00a0increase in\u00a0online orders than ever before. Businesses therefore needed technology to keep track of stock and orders.\u00a0Lot\u00a0traceability could be used to identify, beyond quality issues and recall.<\/p>\n

3. Logistics<\/strong>
\nThe one certainty during the pandemic was uncertainty. Delivery quantities\u00a0and processes were suddenly changing. Some businesses even looked into introducing\u00a0new Uber-style delivery vehicles to keep up with the demand. Here\u00a0organizations need\u00a0technology such as ERP with\u00a0low or no code tailoring and customization. Data should be available on any device and accessible from anywhere.<\/p>\n

Take me back to the bush<\/strong><\/h2>\n

Thinking back to my bush break, a lesson can be learned from my vacation host. Over 1000 people within her hometown in the Kruger Park were affected by the pandemic \u2013 the supply chain was destroyed locally. In response, other families with earnings became breadwinners for relatives and friends, ensuring survival.<\/p>\n

Perhaps\u00a0we can\u00a0apply\u00a0a similar approach to industry supply chains. Share the\u00a0pain to survive and then seek the gain together.\u00a0If the price of your business was impacted by the cost of material\u00a0from unscrupulous global suppliers, perhaps there is\u00a0an opportunity to\u00a0source locally. In fact \u2013 there is\u00a0an opportunity for manufacturing in South Africa for South Africa\u00a0\u2013\u00a0I hope we as consumers make it happen.<\/p>\n

Finding the best, most ethical suppliers\u00a0can be a reality with ERP by your side. Let\u2019s do it.<\/strong><\/a><\/p>\n

Download our free e-book for critical supply chain strategies today<\/strong><\/h3>\n

<\/p>\n

\"Get<\/a><\/span>