Many firms are in survival mode as revenue drops as much as 80%. But spending on cost reduction actions such as process automation; improved supply chain collaboration/integrated business planning; and digital efforts upfront can pay off in the long run.
Life After Survival
In a recent webinar, Forrester predicted that we can expect more competition among surviving firms for the expected reduced demand. As a result, businesses will need to have solid relationships and visibility in place with their upstream supply chain partners.
“Invest in software solutions that allow for real-time, more centralized collaboration and information-sharing – internally among procurement teams and externally with supply chain partners.”
Weighing the Options
In recent years, off-shoring procurement has been a cost-saving option. But Forrester VP and Principal Analyst Duncan Jones says it’s possible that this has had a negative impact on the procurement team’s ability to be better integrated into the overall business, due to geographic and time zone gaps.
On the other hand, some companies are okay giving up cash now to invest in digital skills training, in an effort to prevent problems like overlapping supply requests from business units and supplier onboarding challenges that could be improved through better communication.
IBP Software: Best of Both Worlds
It’s worth looking into Integrated Business Planning software to remove obstacles between procurement teams and other business units in collaborating effectively.
Some Integrated Business Planning (IBP) solutions plug in seamlessly with supply chain planning automation to handle all the important functions in one cloud-based dashboard for all teams and locations, including: demand forecasting, supply planning, supply chain analytics, price optimization and more.
Supply chain software platforms like Blue Ridge IBP are designed to break down important collaboration silos and keep procurement teams tightly synchronized with S&OP goals and processes, so that companies can accelerate financial results.
Learn more about Integrated Business Planning: