5 Reasons to Prioritize Operational Excellence in Your Supply Chain

Your competitors are already working to optimize their supply chain linkage in response to known visibility deficits presented by siloed and disparate systems, such as Enterprise Resource Planning (ERP) and Warehouse Management Systems (WMS).  Integrating this information is just one of several actions recommended to attain operational excellence and establish a unified approach in managing supply chain risks.  

The case for a unified approach 

Supply chain disruptions cost the average organization 45% of one year’s profits over the course of a decade, according to McKinsey. Why do these occur? 

• Lack of connection between suppliers, original equipment manufacturers (OEMs), customers, production, and stock  
• Inefficiency and inflexibility in planning and inventories  
• Lack of end-to-end supply chain visibility
• Siloed data resultant of insufficient connectivity across your systems  

   

A unified approach to managing supply chain risks is critical across all operations and regions (with additional consideration to time zones). Accordingly, you should focus on the following five areas to mitigate risks and enhance operational efficiencies: 

1. Location of key suppliers and reliability of second and third-level suppliers 
2. Availability of alternative qualified supply sources   
3. The timeframe in which suppliers can operate and meet their obligations in a catastrophe scenario  
4. How long your organization can function in the event of prolonged supply chain disruptions  

Moreover, 42% of chief supply chain officers (CSCO) are under pressure to maintain current margins and profitability and achieve targets for sustainability, speed and innovation, according to Gartner. 

The tangible value of automating your supply chain

The gains to be had from automating your supply chain go beyond the simple subjective realm. Having assisted numerous organizations to date, we're confident that you'll experience the expected outcomes: 

1. Accelerate time to market by 80%  
2. Boost productivity by up to 30% through enhancing in-plant digital collaboration  
3. Reduce operating costs by 20-30%
4. Scale operations and increase revenue by 1-2%
5. Connect with your employees and increase operator productivity by 17%

The projected shift to supply chain automation calls for optimism, as a majority of organizations have it as an agenda item for near-term execution. In fact, 72% of supply chain officers expect most of their processes and workflows to be automated within the next three to five years, while 27% expect their workflows to be AI-enabled within the same period, rising to 33% in 2030. 

Are you ready to reinvent your supply chain and get ahead? 

Thirdera's platform experts are prepared to enhance the visibility, agility, sustainability, and resilience of your supply chain. Using a consultative and technical approach, we can automate workflows across every function of your organization and integrate with your suppliers and partners to streamline supply chain management, enable real-time decisions, and elevate customer satisfaction.