With the outburst of technology and the ever-increasing consumer demands, most organizations are subjected to supply chain disruption leading to loss of revenue and brand value. As per a recent survey, more than 75 percent of companies are reported at least one supply chain related issue in a year and nearly twenty percent of such organizations went out of business as a result. While such statistics might frighten budding organization, it is imperative to detect the quality issue in the supply chain ecosystem as early as possible to avert such circumstances. Quality issues can stem out of scenarios such as natural disasters, an act of terror, bankruptcy, theft, et al, hence it is imperative to tap into the problem early on before paying the heavy price.
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In order to ensure a better quality of supply chain, a thorough visibility and communication between organizations and supply chain vendors are incumbent. Failing to assess the vendors would render companies vulnerable to potential quality risks, damaging the brand reputation and hence negatively impact profit. Another crucial aspect of averting risk is seamless and effective communication. As most organizations currently are invested in automating workflows and reducing manual labor, the practice of information sharing among suppliers and organization is lessening each passing day. Organizations need to understand the value of efficient communication channel and the impact it is bound to have on the entire supply chain ecosystem. Hence, all endeavors must be driven towards building robust communication infrastructure. Additionally, enterprises can leverage cloud computing and other technologies to provide an ideal medium of vendor-organization collaboration.
These are not just best practices, rather an imperative for organizations to avoid supply chain disruptions. Needless to say, it promises have multitude of positive impacts ranging from enhanced visibility and traceability to better accountability and profitability.