How much are supply chain disruptions costing your manufacturing company?
And are you well-prepared, if new disruptions are coming? We’ll guide you
In recent years, we've witnessed global events causing unforeseen supply chain disruptions for companies worldwide. Political tensions and unexpected changes have left many businesses questioning their vulnerability. Understanding the costs associated with these disruptions and reacting quickly with accurate data is crucial. Having the right technical setup, including connected ERP and BI tools, is essential.
Are you prepared to uncover the true cost of supply chain disruptions and take control of your manufacturing company's future?
Understanding the costs of supply chain disruptions
Supply chain disruptions can lead to lost sales and missed opportunities, impacting market share and customer loyalty in the long term. Disruptions often also result in increased costs such as expedited shipping, overtime labor, and sourcing from alternative suppliers. Other hidden costs include increased administrative work and employee stress.
Furthermore, it can cause customer dissatisfaction as delays and inconsistencies can lead to frustrations and disappointment, damaging your reputation and resulting in the loss of future business.
What you can do to address supply chain disruptions – and prepare before they occur
The costs can be significant when supply chain disruptions happen. But with the right digital platform, and the right initiatives, you can prepare your business and stand stronger when the next disruption happens.
To effectively manage these disruptions, it's crucial to have a comprehensive view of your supply chain. Here your ERP solution play an important role. By creating a digital common thread and integrate your other business applications with your ERP solution, you can gather important data from various departments, enabling your ERP system to provide a holistic view of your operations. Thereby you can make informed decisions based on trustworthy, accessible data.
With a manufacturing-focused ERP solution like 9A Advanced Manufacturing based on Microsoft Dynamics 365 ERP, your company can master efficiency – and prepare for potential disruptions despite ever increasing product complexity. It also help you be on top of your production planning, despite changes happening frequently.
One of the key benefits of having the right ERP system is its ability to help you identify bottlenecks, vulnerabilities, and optimization options within your processes. For example, with Process Mining for Dynamics 365 F&SCM, you can analyse your operations to pinpoint areas of concern. This allows you to proactively address potential issues before they escalate – making your supply chain more resilient during a disruption. You can also use Process Mining to detect which actors need training, etc. Additionally, ERP systems can help you identify alternative suppliers from different regions, ensuring you have alternatives ready if a disruption occurs. Predictive analytics further enhance this capability by forecasting potential disruptions and enabling you to plan accordingly.
Automation is another critical aspect of ERP solutions. By automating routine tasks, ERP systems reduce the likelihood of human error and increase overall efficiency. This streamlining of processes is particularly beneficial when managing disruptions, as it allows your team to focus on more strategic tasks rather than getting bogged down by manual work.
Leveraging BI tools for better insights and stronger decision making
Having strong reporting tools is always important for you to keep track of the state of your company – when dealing with disruptions, this becomes even more important. A strong BI tool like 9A Smart Insights helps you analyze large volumes of data to identify new trends and patterns. As the tool gathers data from your ERP, CRM, Field Service, and other sources, you can keep track of the different parts of your company and how the disruption impacts different departments.
Conclusion
The costs of a supply chain disruption can be big and come in many forms. Therefore, to answer the question, you need to have the right digital platform for your company.
With a strong digital common thread throughout your organization, you can create the right overview for your company to not only know your costs but also to navigate the challenges of a disrupting event and make the right decisions to mitigate the costs. To do so, it’s important to have access to the right data across your entire supply chain, so you can utilize data efficiently. If you want help identifying the vulnerabilities of your current setup, our trusted advisors are ready to guide you.
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