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Reduce Supply Chain Risk With ERP

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Supply chain risk is a serious concern with serious consequences for many manufacturers and distributors. You may have a plan in place when your suppliers can’t deliver, but how well do you know your supplier’s suppliers? The deeper your supply chain goes, the greater your risk. Strengthen your supply chain by digging deeper into your own supply chain and learning your options.

As discussed in “The Financial Risk Lurking in Your Supply Chain,” posted by Jeffrey A. Burchill on CFO.com, supply chains have grown increasingly complex with globalization of businesses seeking labor and raw materials in other areas of the world. Though businesses can save money partnering with strategic global suppliers and working lean or using just-in-time deliveries, these practices can also create vulnerabilities. When something goes wrong in the supply chain and customers can’t get the right products at the right time, businesses can tarnish their reputation and lose customers as well as revenue.

Supply chain risk isn’t only felt with top tier suppliers. Risk can go deeper into the supply chain, the suppliers of suppliers, which can become confusing as supply chains grow more complex. As Burchill suggests, a risk manager or supply chain manager can investigate potential risks, looking into what a business may know or don’t know about their supply chain such as hidden risks or relying on single suppliers or cost reduction measures too heavily. The more you learn about your supply chain and potential risks, the more you can shore up weaknesses or make plans for the almost inevitable supply chain disruption.

Gain greater insight and control over your supply chain by deploying an integrated enterprise resource planning (ERP) solution such as Microsoft Dynamics® GP. Using this powerful ERP solution, you can get to know your suppliers and inventory needs, maintain real-time inventory levels, and create reliable forecasts for reordering so that you can deliver the right products to customers at the right time. You can also connect customer orders, procurement, and manufacturing or distribution activities with financial processes, which can provide a closer look at profit margins and profitability.

The more you know about your supply chain, the better prepared you can be to handle risks when they arise. Contact MIBAR.net to learn how to reduce supply chain risk with ERP.

By MIBAR.net, Long Island, New York, Microsoft Dynamics ERP Partner

 

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