According to a PwC survey 2023, around 86% [1] of organizations agreed to use real-time supply chain digital transformation to deal with unexpected events or problems. In this regard, let’s understand how switching to digital procurement and using real-time procurement analytics can help companies easily manage cost, inventory, and more.
How Real-Time Analytics Benefits Your Supply Chain
Improves Operation Visibility
According to recent research, 77% [2] of industry leaders state that real-time visibility is a must to provide superior customer service. Real-time analytics data helps you understand how your supply chain runs throughout all stages and address lurking challenges in advance.
For instance, it shows on-time delivery rates for each distribution zone and improves your ability to respond quickly to bottlenecks before they become a major problem. Interestingly, an ideal supply chain management software can also pull data from machine sensors to display their technical status. That better prepares your maintenance team to carry out routine and emergency maintenance to ensure everything goes smoothly from the technical end.
Reduces Operational Cost
Did you know even a 5% [3] savings in supply chain costs can double your net profits? Real-time procurement tools offer detailed insights into your company spending and suggest improvement tips. For instance, a dashboard shows spending patterns, supplier performance, and contract terms. You can also use real-time data to negotiate better deals with suppliers per current market trends and competitor pricing.
For instance, if a product has seasonal price fluctuations, you can propose a good deal to the supplier during off seasons only if you can access its price history for the last year through analytics. Learn more about how Moglix helped an automotive OEM to unlock cost savings in indirect procurement through supplier consolidation.
Helps With Market Volatility
Volatility is an essential index of market risk. Imagine if you could stock materials in advance to beat upcoming shortages easily. Digital procurement with analytics tools can track and analyze the stock of raw materials in the market for the past few months and predict a stockout in the future.
This can save your company’s reputation if you receive an unexpected order during the stockout, only to feel safe that the production continues without interruption. One of the most relevant examples would be ARIMA – a statistical model – commonly used in the financial domain to indicate stock price volatility.
Conclusion
Supply chain digital transformation has become more essential than ever to be responsive to dynamic customer demands and market fluctuations. Though it may seem challenging to adopt digital procurement, with the right partner, the entire process can become a hassle-free affair.
Looking to transform your procurement model and leverage digital procurement analytics for responsive supply chain management?
Partner with Moglix Solutions! Visit our website to learn more.
References:
- https://www.pwc.com/us/en/services/consulting/business-transformation/digital-supply-chain-survey.html
- https://www.tive.com/content/the-state-of-supply-chain-visibility-2023-market-survey-report#:~:text=77%25%20of%20supply%20chain%20decision,yet%2C%20only%2025%25%20use%20it
- https://www.linkedin.com/pulse/optimize-supply-chain-costs-generate-more-profit-elixiatech/
