Collaborate Or Capsize: Research Highlights Supplier Collaboration Is Critical To Minimize Supply Disruptions

Banking CIO Outlook | Monday, July 18, 2022

Fremont, CA: Ivalua is the biggest cloud-based Spend Management solutions, supplier. Its comprehensive, unified platform enables firms to successfully manage all categories of spend and all suppliers, boosting profitability, minimizing risk, and enhancing staff productivity. Trusted by hundreds of the world's most acclaimed brands and public sector executives and acknowledged as a leader by Gartner and other experts.

According to Ivalua, 66 percent of enterprises feel that stronger communication with suppliers is required to boost supply chain resilience. In addition, the increased incidence of Black Swan supply chain events, such as the Ukraine war and the COVID-19 epidemic, has prompted many businesses to strive to reduce the effect of disruptions. However, significant challenges remain, such as the inability to assess risk and interact with suppliers and insufficient technology for defining and initiating a reaction to supply chain disruption.

The Forrester Consulting-commissioned "Chain Reaction – Holistic Supplier Management is Key to Business Success" report discusses measures used by firms to reduce the frequency and effect of supplier interruptions. Over half of firms (56 percent) have introduced automated risk monitoring to alert them of disruptions, and 54 percent have boosted inventory levels. Another 46percent have opted for onshoring or nearshoring, while 44percent have obtained preferential supplier access to important items.

"In an age when Black Swan events are becoming more commonplace, collaborating with your suppliers has never been more critical," comments Alex Saric, smart procurement expert at Ivalua. "Procurement teams are tasked with minimizing the impact of supply chain disruptions, but all too often they're unable to do so because of a lack of visibility into direct and sub-tier suppliers and an inability to collaborate efficiently and at scale. More needs to be done to digitalize procurement to unlock the power of supplier collaboration and ensure supply chain resilience."

According to the report, supply chain sustainability has become a deeper concern for 71percent of firms since the outbreak began. As a result, businesses have started including sustainability into procurement KPIs and defining minimum sustainability requirements for suppliers.

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