Future of Sourcing - Tealbook https://futureofsourcing.com/tags/tealbook en The Key to Mitigating Disruptions: Sourcing with Clean Data https://futureofsourcing.com/the-key-to-mitigating-disruptions-sourcing-with-clean-data <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/The%20Key%20to%20Mitigating%20Disruptions%3A%20Sourcing%20with%20Clean%20Data.png"><a href="https://futureofsourcing.com/sites/default/files/articles/The%20Key%20to%20Mitigating%20Disruptions%3A%20Sourcing%20with%20Clean%20Data.png" title="Poor contingency planning is only one sign of low-quality supplier data harming your business." class="colorbox" rel="gallery-node-2090-UM-r01Tng7I"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/The%20Key%20to%20Mitigating%20Disruptions%3A%20Sourcing%20with%20Clean%20Data.png?itok=TAlJ8kxj" width="624" height="325" alt="Poor contingency planning is only one sign of low-quality supplier data harming your business." title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>The Key to Mitigating Disruptions: Sourcing with Clean Data</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/how-to-recognize-and-manage-supplier-red-flags">How to Recognize and Manage Supplier Red Flags</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Most people who have used any sort of business software offhandedly consider the importance of maintaining quality data, but few make it a priority. Too often in my world, organizations will meticulously enter supplier information into a spreadsheet and dust off their hands. They see ongoing data quality as a difficult to achieve &ldquo;nice-to-have,&rdquo; accept the risk of bad data, and carry on with other business demands, fingers crossed. Not everyone realizes, however, the magnitude of that risk, especially around supplier data.</p> <h2>The True Cost of Bad Data</h2> <p>Relying on manual data entry (or non-entry) of supplier data costs businesses millions of dollars per year in overhead and lost savings. Without sufficient data on their suppliers and <a href="https://www.cnbc.com/2021/08/13/chinas-zero-covid-strategy-to-disrupt-shipping-as-ningbo-zhoushan-port-shuts-.html?__source=google%7Ceditorspicks%7C&amp;par=google">without the ability to quickly discover alternative suppliers</a>, they are being outcompeted <em>every time</em> there is a disruption in supply or otherwise &ndash; and there are <em>many</em> disruptions, as we have all witnessed in the past few months alone.</p> <p>They can&rsquo;t find, diversify, localize or consolidate their suppliers in a short period of time. Rather, they have to wait until a large project is carried out. In effect, their options are limited, cost-saving opportunities with suppliers are lost and claimed by others, and supplier management goals aren&rsquo;t met (or even reached for) on a day-to-day basis. And that&rsquo;s baseline &ndash; not even scratching the surface of dedicated sustainability or supplier diversity programming.</p> <p>Poor contingency planning is only one sign of low-quality supplier data harming your business. Other signs include:</p> <p>●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unclear audit trails that necessitate referencing multiple sources in order to make decisions</p> <p>●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employees making off-the-cuff web searches and emailing anomalous datasheets that&nbsp; <em>may</em> get entered into the ERP system (or any system)</p> <p>●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maverick decision-making (employees not trusting or interacting with the ERP at all)</p> <p>●&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Only verifying supplier information when wrapped up in a larger project, or via first-time onboarding</p> <p>We often see data-cleansing projects that can involve having to chase hundreds of suppliers, many of whom are not even reachable or in business and this can result in inefficiencies that include <a href="https://futureofsourcing.com/5-benefits-to-adding-sustainability-measures-in-your-contracts-and-how-to-get-started">failed supplier diversity efforts, under-met ESG criteria, and delayed payments</a> and delivery of goods/services.</p> <h2>Opportunities That Miss the Mark</h2> <p>In addition, using poor supplier data can translate into missing KPIs that have been achieved. This happens when organizations don&rsquo;t realize they are already tapping into a diverse and socially and environmentally responsible supplier base. Other ramifications of not having clean data include working with uncertified suppliers with bad practices who will eventually fail you, keeping outdated supplier information and certification statuses, falsely entering tax information and spending thousands of dollars per supplier record in employee overhead. In fact, we recently conducted a study that showed the cost of adding a single supplier record is $2,431.</p> <p>Unfortunately, organizations do make attempts to enhance their data practices but through <em>more</em> implementations of department-specific ERPs which is expensive and creates multiple, contradictory sources of &ldquo;truth.&rdquo; So, it&rsquo;s no wonder employees do work outside of their ERP systems and either 1) search for external data piecemeal or 2) rely on their own mentally stored knowledge.</p> <p>Then, if those employees leave, their knowledge leaves with them. Organizations end up in a vicious cycle where the ERP becomes a beast that no one wants to feed. Expensive third parties might be brought in one or multiple times a year to help roll up data and get it cleaned, but once they leave, the cycle repeats itself. Companies are left with doubt, wasted IT efforts, and still have low-quality supplier data.</p> <p>The best way to avoid a massive, manual clean-up project is to implement a cloud-based solution that doesn&rsquo;t require a clean-up in the first place and can be easily plugged into any S2P, ERP or point solution. In other words, companies can be freed from time-consuming, messy IT projects and start with a clean slate. Cloud-based technology can harvest a company&rsquo;s internal supplier data, plus publicly available supplier data on the internet, and compile that information into structured supplier records.</p> <p>From then on, supplier records can be in one single place and considered a reliable source of truth, regularly updating and capturing all relevant and necessary details needed to do good business. Suppliers&rsquo; environmental impact, sustainability, diversity accreditations, location, company size, type of customer, year founded, supplier financial health and more can regularly be factored into decision-making.</p> <p>These supplier details aren&rsquo;t merely pulled from random corners of the internet either. Machine learning algorithms crawl the web to determine what supplier attributes should be discovered and can use buyer data and hundreds of supplier dimensions to identify similarities/trends between suppliers (no different from Netflix telling you what movie to watch tonight). The more this technology is used, the smarter it becomes, allowing buyers to be equipped with as much supplier intelligence as they possibly can be.</p> <h2>Building a More Equitable Supply Chain</h2> <p>Amid increasing <a href="https://futureofsourcing.com/five-technologies-to-future-proof-supply-chain-inspections">supply chain disruptions</a>, keeping a steady stream of clean supplier data is a must-have. Right now. It can&rsquo;t be set aside and left for someone else to deal with in the future. A future with clean data means that when there are the inevitable supply chain disruptions, companies can know their backup sourcing options with a click or two.</p> <p>With more of the supply chain utilizing clean data, the world will be more equitable, with smaller suppliers being considered as often as big ones. Companies will be more innovative, spending more time on the big picture and less time being forced to sweat the small stuff. Last but not least, organizations will be able to do business knowing they are supporting healthy work conditions, responsible sourcing, waste management and other climate change initiatives.</p> <p>In short: clean data is not just about feeling organized and avoiding mistakes. Clean data means a clean future.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-relationship-management-srm" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Relationship Management (SRM)</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/data-management" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Data Management</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/tealbook" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tealbook</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/environmental-and-social-governance-esg-0" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Environmental and social governance (ESG)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="The Key to Mitigating Disruptions: Sourcing with Clean Data - Future of Sourcing" addthis:url="https://futureofsourcing.com/the-key-to-mitigating-disruptions-sourcing-with-clean-data"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Tue, 07 Dec 2021 17:00:00 +0000 Stephany Lapierre 2090 at https://futureofsourcing.com https://futureofsourcing.com/the-key-to-mitigating-disruptions-sourcing-with-clean-data#comments How Will You Weather the Next Storm? Build a Stronger Supply Chain https://futureofsourcing.com/how-will-you-weather-the-next-storm-build-a-stronger-supply-chain <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/How%20Will%20You%20Weather%20the%20Next%20Storm%3F%20Build%20a%20Stronger%20Supply%20Chain.png"><a href="https://futureofsourcing.com/sites/default/files/articles/How%20Will%20You%20Weather%20the%20Next%20Storm%3F%20Build%20a%20Stronger%20Supply%20Chain.png" title="How Will You Weather the Next Storm? Build a Stronger Supply Chain" class="colorbox" rel="gallery-node-2071-UM-r01Tng7I"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/How%20Will%20You%20Weather%20the%20Next%20Storm%3F%20Build%20a%20Stronger%20Supply%20Chain.png?itok=glpNNMWE" width="624" height="325" alt="How Will You Weather the Next Storm? Build a Stronger Supply Chain" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>How Will You Weather the Next Storm? Build a Stronger Supply Chain</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/how-to-recognize-and-manage-supplier-red-flags">How to Recognize and Manage Supplier Red Flags</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>In the world of procurement, there is <a href="https://www.supplychaindive.com/news/china-supply-chains-procurement-sourcing-resilience-vietnam/606321/" target="_blank">always another crisis right around the corner</a>. Time and time again, the industry has been rattled by various disruptions and forced to reconsider how we will weather the storm better than we have had in the past.</p> <p>Unfortunately, the latest disruptions prove that companies still have <a href="https://www.forbes.com/sites/edwardsegal/2021/10/31/at-g20-summit-biden-announces-new-steps-to-combat-supply-chain-crisis/?sh=1c6e61b63e1f" target="_blank">not taken the necessary steps</a> to protect themselves from the harrowing impacts of crises like loss of revenue, negative effects on consumers and more. So how are procurement professionals supposed to build stronger, more resilient supply chains that are agile enough to withstand these unfortunate events?</p> <h2>Examine the Past</h2> <p>Crisis can strike at any time, often causing a number of devastating results. Unfortunately, when it comes to better preparation, the age-old adage &ldquo;history repeats itself&rdquo; definitely applies. One of the best ways procurement leaders can learn from past mistakes is to be fully aware of what they&rsquo;re up against.</p> <h3>Natural Disasters</h3> <p>The last decade alone has presented its fair share of natural disasters that have caused major supply chain disruptions. Earthquakes have resulted in a loss of power to millions and an abrupt pause in vehicle manufacturing. Hurricanes and typhoons across the world have inflicted damage to transportation hubs and caused fuel shortages, while agricultural losses have affected local, national and international product supply chains.</p> <h3>Man-Made Crises</h3> <p>In 2015, the Port of Tianjin in China faced multiple explosions and uncontrollable fires as a result of a lack of proper safety protocols &mdash; thousands of vehicles meant for sale were destroyed and several buildings were compromised. In 2016, the new Brexit&nbsp; ruling caused a number of employment, trading and travel regulations to be upended, resulting in a stunt of the U.K.&rsquo;s economic growth.</p> <h3>COVID-19</h3> <p>It goes without saying that COVID-19 is the largest shock the supply chain industry has ever seen, and it&rsquo;s still not over. With unprecedented disruptions and a highly increased demand for supplies, in less than two years, this crisis has caused supply chains all over the world to come to a grinding halt and cost the industry an estimated $28 trillion in lost revenue.</p> <h2>Using Data to Protect Against Disruptions</h2> <p>Without plans in place &mdash; and the capability to properly execute those plans &mdash; organizations will face the same disruptions again. While procurement leaders can&rsquo;t prevent a crisis from happening, they can create a contingency plan that allows them to weather the storm without experiencing major disruptions. Formulating this plan begins, first and foremost, with good supplier data.</p> <p>Think about it: Supply chains experience disruptions when the supplier that was intended to provide a good or service is unable to do so. If you have strong supplier data at your disposal, you can develop a plan to replace that supplier quickly before a major disruption occurs.</p> <p>The problem is, very few organizations have that strong supplier data in the first place. In fact, 72% of procurement leaders are concerned that their supplier intel has not improved since the COVID-19 pandemic, leaving them vulnerable and unable to remain agile. The ironic thing is that 96% of that same group agrees that agility is more important than cost savings.</p> <h2>Improving Data Management</h2> <p>To improve supplier data, procurement teams need to first examine how they&rsquo;re aggregating and managing data. Too often, they use manual methods &mdash; such as web searches and spreadsheets &mdash; to keep track of information, but this leaves data siloed and teams unable to quickly find alternative and diverse suppliers.</p> <p>To improve agility and resilience, organizations need to invest in technology that automatically harvests, analyzes and improves supplier data. This digitization allows for better flexibility so they can easily find the suppliers necessary to maintain a strong supply chain.</p> <h2>Building Supplier Diversity Programs</h2> <p>When planning for crises, a good contingency plan will always include alternative suppliers, routes and production models. No matter how many or few suppliers your organization works with, there is always room for diversification to allow for better responses to any disruption.</p> <p>Planning to use alternative suppliers is one thing &mdash; finding them is another. Using an automated, digital system for supplier discovery can assist procurement teams in finding diverse, alternative suppliers in a fraction of the time compared to manual methods.</p> <h2>Strong Data is the Key to Weathering the Storm</h2> <p>In the procurement world, it&rsquo;s not a matter of <em>if</em> there will be the next crisis, it&rsquo;s a matter of <em>when</em> it will strike. By learning from past mistakes and improving access to quality supplier data, your organization will be able to&nbsp; handle the crisis with agility and flexibility and stand strong against disruption.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/tealbook" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tealbook</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/covid-19" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">COVID-19</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-data" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">supplier data</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supplier-diversity" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Diversity</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="How Will You Weather the Next Storm? Build a Stronger Supply Chain - Future of Sourcing" addthis:url="https://futureofsourcing.com/how-will-you-weather-the-next-storm-build-a-stronger-supply-chain"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Wed, 20 Oct 2021 02:00:00 +0000 Stephany Lapierre 2071 at https://futureofsourcing.com https://futureofsourcing.com/how-will-you-weather-the-next-storm-build-a-stronger-supply-chain#comments How to Recognize and Manage Supplier Red Flags https://futureofsourcing.com/how-to-recognize-and-manage-supplier-red-flags <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/How%20to%20Recognize%20and%20Manage%20Supplier%20Red%20Flags.png"><a href="https://futureofsourcing.com/sites/default/files/articles/How%20to%20Recognize%20and%20Manage%20Supplier%20Red%20Flags.png" title="How to Recognize and Manage Supplier Red Flags" class="colorbox" rel="gallery-node-2052-UM-r01Tng7I"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/How%20to%20Recognize%20and%20Manage%20Supplier%20Red%20Flags.png?itok=TjlR_ksl" width="624" height="325" alt="How to Recognize and Manage Supplier Red Flags" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>How to Recognize and Manage Supplier Red Flags</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/do-you-trust-your-supplier-data">Do you trust your supplier data?</a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>Global trends, including the COVID-19 pandemic, have taught procurement professionals the value of identifying supplier red flags and mitigating the risks they may pose before it&rsquo;s too late. To do this, some organizations are making local buying their top priority, while others are committing to consolidating their supplier lists or further diversifying as their needs demand.</p> <p>Since reevaluating supplier portfolios and understanding where and how suppliers are falling short of the mark is easier said than done, it can be valuable to understand what exactly you&rsquo;re looking for when examining your existing portfolio of suppliers and attempting to determine if any red flags are waving in the breeze.</p> <p>While weighing those red flags will ultimately come down to your supplier and product needs, it&rsquo;s helpful to know where to start when it comes to thinking about your options and protecting your investments. Here are a few helpful things to consider during your evaluations.</p> <h2>Look at Employee Turnover Rates</h2> <p>True, you might not care very much about the executives in charge of your suppliers&rsquo; operations and day-to-day business, but if your supplier is constantly hiring for a slew of positions, that could be a sign of financial instability or a lacking workforce.</p> <p>If a supplier isn&rsquo;t able to keep their employees and their facilities operating consistently, there could be disruptions in their ability to deliver what they promise, and that is a concern.</p> <p>You don&rsquo;t have to go incredibly in-depth on this; a simple Indeed or LinkedIn search of the company&rsquo;s open positions should tell you everything you need to know. It&rsquo;s a simple step that can save you a lot of money and anxiety along the way.</p> <h2>Examine the Price of Goods</h2> <p>Speaking of money spent, if you notice that your suppliers are bidding ridiculously low, that could also be a red flag. If you&rsquo;re putting something out for bid and a supplier&rsquo;s response is quick and cheap, it&rsquo;s likely a sign that the supplier is trying to get quick cash instead of actually building long-term working relationships.</p> <p>Especially in a post-COVID-19 world, this is a concern for many procurement professionals. It&rsquo;s no secret that suppliers across industries are struggling to recover from the global disruptions the pandemic caused, but if your suppliers are borrowing from Peter to pay Paul, it&rsquo;s not worth risking that your organization may be short-changed by this practice in the long run.</p> <h2>Consider External Factors</h2> <p>To be fair, it&rsquo;s not just business practices and hiring or firing that could be throwing up red flags when it comes to your suppliers. Variables such as climate change and the COVID-19 pandemic can also impact suppliers.</p> <p>For example, in states like Florida &ndash; where vaccination rates are relatively low and COVID-19 cases are relatively high &ndash; it is likely that suppliers will be impacted since, statistically, not everyone will be showing up for work six months from now. At the end of the way, it&rsquo;s likely many procurement professionals will be wary of doing long-term business in those states.</p> <p>It&rsquo;s a similar issue with climate change. In Seattle &ndash; and all up and down the West Coast, for that matter &ndash; wildfires and extreme dryness are not just an environmental problem, but a supply chain risk as well. If a building, cables or vehicles fall victim to these fires, that spells trouble for organizations relying on these suppliers.</p> <h2>Take Stock of Suppliers</h2> <p>A weak pun, but an important concern; if your supplier is listed with the New York Stock Exchange and their stock appears to be in trouble, be wary &ndash; that could spell trouble on the horizon for all parties involved.</p> <h2>Be Prepared to Diversify</h2> <p>Recognizing supplier red flags is one task but responding to those red flags is another issue entirely. In order to properly respond to concerns raised as a result of supplier practices, procurement professionals should prioritize having a diverse population of suppliers &ndash; and supplier information &ndash; at their fingertips.</p> <p>Reaching out to other companies who work with suppliers is a great way to gather a significant amount of information from third-party sources who might be able to speak to elements of their business practices you may be concerned about. It&rsquo;s also a great avenue through which to understand where your peers are sourcing from and if there&rsquo;s an opportunity to diversify.</p> <p>Resources that provide unified and updated supplier data can also assist in crafting a broad and diverse roster of suppliers. That way, if you do encounter red flags, you&rsquo;ll be able to easily pivot from one supplier to another.</p> <p>Ultimately, there are many factors that go into assessing if a supplier&rsquo;s red flags are enough to keep you from doing business with them. By examining potential threats and risks and having diverse suppliers at your fingertips, you can ensure you&rsquo;ll be prepared for anything &ndash; even the most disastrous worst-case scenario.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/tealbook" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tealbook</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supplier-data" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">supplier data</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/covid-19" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">COVID-19</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supplier-diversity" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Diversity</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-relationship-management-srm" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Relationship Management (SRM)</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="How to Recognize and Manage Supplier Red Flags - Future of Sourcing" addthis:url="https://futureofsourcing.com/how-to-recognize-and-manage-supplier-red-flags"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 13 Sep 2021 02:00:00 +0000 Stephany Lapierre 2052 at https://futureofsourcing.com https://futureofsourcing.com/how-to-recognize-and-manage-supplier-red-flags#comments Are You Ready for the Next Crisis? https://futureofsourcing.com/are-you-ready-for-the-next-crisis <div class="field field-name-field-image field-type-image field-label-hidden"><div class="field-items"><div class="field-item even" rel="og:image rdfs:seeAlso" resource="https://futureofsourcing.com/sites/default/files/articles/Are%20You%20Ready%20for%20the%20Next%20Crisis%3F.png"><a href="https://futureofsourcing.com/sites/default/files/articles/Are%20You%20Ready%20for%20the%20Next%20Crisis%3F.png" title="Are You Ready for the Next Crisis?" class="colorbox" rel="gallery-node-1983-UM-r01Tng7I"><img typeof="foaf:Image" src="https://futureofsourcing.com/sites/default/files/styles/juicebox_medium/public/articles/Are%20You%20Ready%20for%20the%20Next%20Crisis%3F.png?itok=AGT61F4I" width="624" height="325" alt="Are You Ready for the Next Crisis?" title="" /></a></div></div></div><div class="field field-name-field-intro field-type-text-long field-label-hidden"><div class="field-items"><div class="field-item even"> <h1>Are You Ready for the Next Crisis?</h1> </div></div></div><div class="field field-name-field-related-news field-type-entityreference field-label-above"><div class="field-label">Related news:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/how-to-assess-end-to-end-supply-chain-sustainability">How to Assess End-to-End Supply Chain Sustainability </a></div></div></div><div class="field field-name-body field-type-text-with-summary field-label-hidden"><div class="field-items"><div class="field-item even" property="content:encoded"> <p>The COVID-19 pandemic created a crisis of epic proportions and left leaders in every industry scrambling to react. Procurement leaders across the globe saw the weakness in their supply chains and needed to reinvent their ability to manage the data in order to make critical decisions. In fact, according to a recent survey by the <a href="https://www.prnewswire.com/news-releases/covid-19-survey-impacts-on-global-supply-chains-301021528.html">Institute for Supply Management,</a> upwards of 75% of companies saw supply chain disruptions in the wake of COVID-19.&nbsp;</p> <p>While we are hopefully moving beyond this recent turmoil, procurement leaders need to be ready for the next crisis. To do this, organizations need to have quick access to accurate, transparent and trustworthy data.</p> <h2>Procurement Leaders Identify Top Challenges</h2> <p>We recognize that the COVID-19 pandemic proved to very challenging for procurement leaders all over the world. Some of the biggest issues supply chain networks faced stemmed from having much of their suppliers offshored. While offshoring has historically allowed companies to keep costs lower, it also comes with obvious drawbacks&mdash;which were unfortunately brought to light at the start of the pandemic.</p> <p>Many procurement leaders whose supply chains were primarily offshored in China saw longer lead times, delays in order completion, a lack of supply chain information and limited options for transporting their goods.</p> <p>Some of these challenges and disruptions were further impacted by the need to combat COVID-19. For safety reasons, many manufacturers in China were operating at a reduced capacity, slowing production. Once the demand for certain goods increased, many companies were unable to fulfill the demand based on their original forecasts.</p> <p>For example, when consumers were stocking up on toilet paper and disinfectant wipes, suppliers struggled to meet the demand, and retailer shelves were left bare. In an effort to overcome these challenges, companies tried to find alternative suppliers that were closer to home.</p> <p>However, many organizations did not have the insight into supplier information to make this transition. In <a href="https://www.tealbook.com/wakefieldstudy2021/">a study</a> done by Tealbook and Wakefield Research, this is still very much a problem today: 30% of procurement leaders say they fear missing out on supplier innovation.</p> <p>The process of finding new suppliers continues to be arduous for many. 57% of procurement leaders are still entering supplier data manually, according to the same study, leading to higher costs, more chances for human error and less opportunity for strategic planning.</p> <h2>3 Steps to Become More Resilient</h2> <p>In order to develop a supply chain that is able to withstand crises, you need to have a strong data foundation. Having access to the right information allows for greater diversity and flexibility within your networks, and it can also help protect against costly disruptions.</p> <h3>1. Consider Your Process</h3> <p>The first step to ensure a strong data foundation is to look at the processes in place to find and manage that data. We see a lot of companies attempting to aggregate data manually. That can be very time-consuming and costly. Especially in times of crisis, manual data management lacks the speed and flexibility to make quick decisions.</p> <h3>2. Keep the Data Accurate and Fresh</h3> <p>You have to look at the data itself and what is being done to keep it accurate and fresh. Too often, we see data that is collected one time and never updated, leaving procurement leaders with siloed, stale information.</p> <p>In order to have the best data possible when you need to react to a crisis, processes need to be in place that allow for the data to be consistently refreshed, checked for duplicates, and other changes or inaccuracies, and updated in close to real-time.</p> <h3>3. Find Diverse Suppliers</h3> <p>Whether your company works with a few dozen or a few thousand suppliers, there is always room for diversifying. When crisis strikes, you may find that your current suppliers are no longer able to meet demands. This makes the ability to quickly find and work with more diverse suppliers even more important&mdash;it could be the difference between maintaining processes or losing revenue.</p> <p>However, finding more diverse suppliers is not always easy. This brings us back to the way a company collects and manages data. If you&rsquo;re doing so manually, it can take too long to find suppliers to help maintain your processes. With an automated system in place, you can find suppliers that match your needs in a fraction of the time and preserve your business.</p> <p>The COVID-19 pandemic is one of the most difficult crises ever encountered by the procurement industry&mdash;but it likely won&rsquo;t be the last. Making it through the next disruption will require procurement to take a hard look at supplier data and consider ways to improve performance. When the inevitable next crisis disrupts our lives, having access to accurate and trustworthy supplier information can make the difference between dealing with hardships or achieving success in difficult times.</p> </div></div></div><div class="field field-name-field-tags field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Tags:&nbsp;</div><div class="field-items"><div class="field-item even" rel="dc:subject"><a href="/tags/supplier-innovation" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">supplier innovation</a></div><div class="field-item odd" rel="dc:subject"><a href="/tags/supplier-relationship-management-srm" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Supplier Relationship Management (SRM)</a></div><div class="field-item even" rel="dc:subject"><a href="/tags/tealbook" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Tealbook</a></div></div></div><div class="field field-name-field-addthis field-type-addthis field-label-hidden"><div class="field-items"><div class="field-item even"><div class="addthis_toolbox addthis_default_style " addthis:title="Are You Ready for the Next Crisis? - Future of Sourcing" addthis:url="https://futureofsourcing.com/are-you-ready-for-the-next-crisis"><a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_linkedin"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_facebook"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_twitter"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_googleplus"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_pinterest_share"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_reddit"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_email"></a> <a href="https://www.addthis.com/bookmark.php?v=300" class="addthis_button_print"></a> </div> </div></div></div><div class="field field-name-field-region field-type-taxonomy-term-reference field-label-inline clearfix"><div class="field-label">Region:&nbsp;</div><div class="field-items"><div class="field-item even"><a href="/regions/global" typeof="skos:Concept" property="rdfs:label skos:prefLabel" datatype="">Global</a></div></div></div> Mon, 10 May 2021 02:00:00 +0000 Stephany Lapierre 1983 at https://futureofsourcing.com https://futureofsourcing.com/are-you-ready-for-the-next-crisis#comments