Mitigating Supply Chain Risks with NetSuite Supply Chain Management

Summary: This write-up talks about deploying NetSuite Supply Chain Management to manage and reduce risks associated with supply chain. One can go through the possible intricacies and find solution that best fits their business operation, budget, and efficiency.

NetSuite supply chain management solutions enable production companies to check the flow of goods from suppliers through manufacturing and into customers’ hands. With the implementation of Supply Chain Risk Mitigation and Management Software, you can keep production running smoothly and ensure all materials are available and in the correct locations. Additionally, businesses in the supply chain management can accurately schedule machinery and labor resources. For the most part, NetSuite Procurement and Supply Chain Risk Mitigation capabilities communicate with suppliers and ascertain high-end accuracy throughout the purchasing process. Furthermore, integrated demand planning, inventory management, and predictive analytics helps optimize production strategies and work orders.

NetSuite Supply Chain Management Tools help record and update production data, financial reports, inventory, and outstanding orders in real-time. With such inventive capabilities, you can ensure that procurement, planning, and production systems are operating on the same data.

Supply chain risks cover economic, environmental, political, ethical, and cyber security threats. For the most part, these risks often disrupt the flow of goods and services within a supply chain network.

These risks include

For Supply Chain Risk Mitigation, businesses employ strategies such as supply chain mapping, weighted ranking, Value at Risk (VaR) assessment, supplier segmentation, diversification, inventory management adjustments, scenario planning, and building strong supplier relationships. This readily ensures resilience and continuity in their supply chain operations.

Small and mid-sized businesses should know how the suppliers work directly. To reinforce their supplier networks, businesses should first understand the types of risks various partners present and the degree of risk in each case.

Before you plan to evaluate suppliers or perhaps your suppliers’ suppliers, you should map out who they are, what they deliver and where they are located. Then, you can collaborate with colleagues across your business organization as you build this map to abstain from overlooking a few suppliers, especially if they provide a few small products.

Business administrators can use a basic system that assigns weighted importance to risk factors like economic or political disruption, financial dependence, credit history and natural disasters.

The Association for Supply Chain Management has a metric called Value at Risk as part of its Supply Chain Operations Reference (SCOR) model. For the most part, it is another way for businesses to compare the amount of risk that various suppliers render. A company considers categories of risks — whether they are risks related to politics, weather, ethical practices, quality or other categories. Later, they assign probabilities to the likelihood of occurrence of the events.

Once an organization has assessed the risk of its supply chain partners, mitigating Supply Chain Risks can be easier than ever. Here, the best and most effective way to build resilience is to diversify your supplier base. You should find redundant suppliers for key parts and materials that are located in different parts globally.

When you localizing Your Supply Chain, you can better understand the potential benefits, major costs to consider, potential barriers to relocation, and major steps to be taken if you decide to onshore.

Identifying and on boarding a supplier could take anywhere from weeks to a year or more, according to experts we interviewed.

Modifying your inventory planning and management strategy is another way to increase resilience. You’ve likely already considered this: Many manufacturers, distributors and retailers are struggling to decide how much inventory to carry in light of recent supply-chain snags.

As should be clear at this point, your success is dependent on your suppliers, shipping carriers and everyone else that plays a role in your supply chain. You need to remember this as you strengthen your supply chain. It may require shifting the way you think about suppliers, from simply “the person we buy something from” to a true strategic partner.

At the heart of this is the age-old art of relationship building. Wherever possible, take the time to get to know your primary point of contact at each supplier.

Top decision-makers involve in efforts to strengthen and consolidate the supply chain. Here, at inoday, an official and #1 ORACLE NetSuite Channel Partner, one can connect to our skilled and acclaimed NetSuite Consultants and make the most of their expertise and experience to realize that risk and initiate its mitigation. Our experts understand that reliability is a critical factor when making any decision related to the supply chain risk mitigation and they help you adapt accordingly. At the same time, we recognize the value of establishing trust and goodwill and hence, we offer the services and tools to let you flourish your relationships with new suppliers and strengthen the existing ones.

For more details, write to us at info@inoday.com Or Schedule A Demo