Supply Chain

Finance Solutions

How can I better anticipate and prevent supply chain disruptions?

Supply chain executives tell us that their two biggest concerns are disruptions to product or service delivery and high supplier operational costs. Reasons for these concerns are:

  • Increased supplier financial failures
  • Ineffective supplier due diligence processes
  • Off-contract spending increases supplier costs
  • Poor spend visibility limits the ability to manage costs
  • Managing multiple ERP systems impacts productivity
  • Cost of supplier onboarding is too high

Ensuring effective supply chain management

To minimize product or service disruptions and reduce operational costs, supply chain teams need to be able to automate the collection and assessment of supplier data and synchronize and continually update data between the AP system and vendor master or procurement system. Key criteria for effective management should include:

  • Centralizing a supplier management system that auto collects risk information directly from suppliers, verifies and augments information from third-party sources, enables internal collaboration around corrective action planning and monitoring, and provides early indicators of issues
  • Automating the collection of key supplier information, assigning risk metrics to report on supplier risk standings, and proactively alerting business owners to potential risk issues
  • Accessing up-to-date, accurate payment terms for each supplier in order to spend within negotiated contracts
  • Automating the process of gathering and validating supplier information so that costs and time associated with supplier on-boarding can be lowered
  • Ensuring that all supplier information gathered is captured and updated in appropriate ERP, procurement and AP systems

Aravo can help

Aravo has helped many supply chain departments lower their operational costs and minimize product and service disruptions with Aravo SIM and Aravo Risk. For more information, please click on one of the choices below.

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