The Coronavirus (COVID-19) pandemic and 2020 recession are creating new stresses and disruptions in the global supply chain that are now presenting themselves. In today‘s hyperconnected economies, the response to supply chain risk has primarily been “reactive”.
Supply Chain Management
The COVID-19 pandemic poses fundamental questions for governments and businesses about the resilience of international trade.
How to ensure supplies of crucial goods (medical supplies, food) that are dependent on global supply chains?
How to survive the immediate crisis and be best placed, with suppliers and customers, to resume production as soon as conditions allow?
How to protect national industries while retaining the benefits of free and fair international trade?
When the first few cases of Coronavirus (COVID-19) were detected just four short months ago, few could have expected what has now become our new reality. We are in the midst of a global pandemic outbreak that tragically continues to claim the lives of thousands and disrupt the livelihoods of countless others. On top of that, it’s also causing serious business, supply chain and economic disruptions worldwide. From shortages in supply and talent, to quarantine and border closures, the impact is increasing by the day, continuing to wreak havoc on businesses and supply chains.
Knowing the behavioral history of a supplier prior to negotiations is essential to understand the reasons why a supplier is likely to offer optimal prices and service level agreements (SLA).
In the past, siloed and in-person negotiations often revealed insights about supplier behavior, but these insights were usually ignored because there was no empirical way for a sourcing professional to capture, share, and leverage this behavioral data cross-functionally.
It is no secret that poor supplier data is the single largest barrier facing successful eProcurement transformation. Organizations in all industries, regardless of size, are susceptible to massive budget overruns or outright project failure without a well-thought-out data acquisition strategy.