The COVID-19 pandemic has forced businesses to prioritise their procurement process as a key consideration.
Efficient procurement can mitigate risk, drive growth, and give your manufacturing business a competitive advantage.
To help manufacturing businesses navigate this process during the global crisis, leading manufacturing ERP provider SYSPRO has written a whitepaper that details five important strategies to improve your procurement process.
A summary of these strategies is outlined below.
1. Prepare for uncertainty
The manual process of gathering and deciphering information about suppliers, markets, and environmental factors is a thing of the past.
The new approach is data-driven and enables real-time decision making and forward planning.
2. End-to-end visibility
It is important that businesses have a single platform where everything from early-stage planning to final delivery can be tracked.
This is driven by embedded AI capabilities which provide real-time intelligence, actionable insights and recommendations that inform other areas of the manufacturing process.
3. Embrace the limitless potential of digitalisation
Digitalisation creates new implications for how the modern and future business will operate.
These technologies offer new challenges to your manufacturing business, but by embracing them, you will be setting your business up for long-term success.
4. Build a robust supply chain
Manufacturing businesses that have been operating with thin margins have been impacted the hardest by the COVID-19 pandemic.
They have learned quickly that the procurement process needs to be robust and resilient.
This is why businesses need to build bigger buffers so that they are able to deal with crises they may encounter.
For many businesses, this will require a comprehensive reengineering of the supply chain.
5. Agile sourcing to mitigate risk
It has become common for supply diversification to focus on driving down costs to maximise profit margins.
However, as supply chain disruptions are happening more frequently, it has become important that this be balanced with risk mitigation.
While this may cost more in the short term, it protects you against larger, long-term losses.
An ERP solution is crucial
A comprehensive ERP solution is crucial for manufacturing businesses looking to streamline their procurement processes.
SYSPRO ERP offers built-in digitalisation capabilities that help manufacturing businesses create an agile supply chain that offers end-to-end visibility. It also enables you to optimise your organisation’s supply chain in both the short and long terms.
Furthermore, SYSPRO helps you to lower purchasing risk, improve governance, and maintain your negotiated agreements.
This article was published in partnership with SYSPRO.