12/14/2021 | Press release | Archived content
Institute supply chain governance fueled by data that only a modern platform can offer.
Key Takeaways:
When it comes to supply chain sustainability, responsible organizations don't just talk - they act by creating a governance structure. Proper governance ensures that company decisions align with stated company values and can provide the data and transparency that proves, which the world is increasingly demanding.
Governance for the sustainable supply chain takes collaboration, formalization, and additional mechanisms. In a collaborative environment, companies can execute their sustainability strategy through consensus with supply chain stakeholders. This approach means far better collaboration on results than when rules are simply imposed.
Governance of your supply chain is not the same as managing it. Although both management and governance have the goal of creating a more efficient supply chain, management deals with the products and their efficiency. Governance takes a more holistic view of the system and synergies between the players.
Effective governance requires real-time data to improve sourcing decisions, create and nurture a strong supplier network, and provide the transparency consumers demand. This requires the right technology, so you can, indeed, walk your company talk.
A weak or non-existent supply chain governance strategy leads to poor transparency and weakens the foundation of your supply chain. Governance ensures you have the correct resources and capabilities there when you need them.
Profits are important, and they will come with the reputational boost your company gets from proper governance (not to mention fewer unexpected disruptions due to better diligence). Transparency into your supply chain is a must-have for today's consumers, which means companies must broaden their vision to create a better future through a governed, sustainable supply chain.
Many companies say they believe in corporate social responsibility but believing and doing are two different things.
It's important to note the difference between supply chain management and supply chain governance:
Supply chain governance creates leverage and scale, helps manage risk, increases bottom-line profitability, and conforms to your regulatory, social, and environmentally friendly company agenda.
Supply chain governance is multidimensional and includes initiating, developing, and maintaining relationships between each 'link' in your supply chain. It coordinates the way financial, material, and human resources are earmarked within the flow and the framework for decision-making.
Mechanisms for governance can include contracts, standards, mechanisms for reporting, and social bonds. Key components include:
It's also imperative to establish continuous process improvements that are tied to closed-loop monitoring and control of spending and compliance behavior. Creation of a Chief Supply Chain Officer role can centralize functions to facilitate company-wide standardization of goals.
An effective strategy relies on real-time supply chain management data, and this is where supply chain technology platforms shine.
Supply chain transparency relies heavily on data that is not available via your ERP system or those spreadsheets you've been using. Sophisticated supply chain governance strategy, implementation, and auditing capabilities require state-of-the-art technology that harnesses the power of artificial intelligence to:
In addition, the right supply chain management platform helps you create and nurture a robust supply network. Setting clear expectations means better communication and more enthusiastic collaboration because your approach is fair and open when it comes to scorecards and sourcing decisions - it's all in the data.
Supply chain governance is quickly gaining importance as a tool to execute on corporate responsibility and sustainability initiatives. In the near future, ethical enterprise management will not be optional - plan accordingly.
The Logility platform enables good governance and accelerates the sustainable digital supply chain by leveraging data-driven tools such as advanced analytics and AI that empower your business with greater visibility that means accurate planning, accelerated cycle times, improved precision, and increased operating performance.
We help organizations sense and respond to changing market dynamics and more profitably manage their global businesses to become resilient, sustainable enterprises. It's time for a digital, sustainable supply chain. Reach out to our specialists today to discuss our supply chain solutions.
The future of supply chain management is constantly reshaped by challenges that keep industry leaders up at night. Everything from…
The cloud has emerged as the cornerstone of modern business and supply chain innovation. From retail and food and beverage…
Supply chain issues have put many companies into crisis mode. Avert crises and manage your supply chain more efficiently with…