RL - Manufacturing

Becoming a Proactive Supply Chain Organization

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axway.com 2 Forget reaction. It's all about chain proaction. A "reactive" culture is spreading through supply chain enterprises. Studies indicate that over 80 percent of these organizations often hold off identifying and resolving impending issues, or even day-to-day concerns, until perilous circumstances force them to act. Responding to operational issues as they surface, instead of anticipating and planning for change, makes achieving strategic goals – such as improving operational performance and the customer experience – far more difficult than it needs to be. Given today's highly competitive and regulated environment, the traditional "fix-on-failure" approach to business operations just doesn't work anymore. If your supply chain organization wants to meet strategic goals, you have to become much more proactive. To do this, organizations today not only need interactive decision-making tools, but broader access to valuable data made possible throughout customer experience (CX) networks. Real-time insight is the only way organizations can quickly detect risks, spot opportunities and take decisive action. By implementing systems that deliver real-time, end-to-end (E2E) visibility and analytics to your operations, everyone in the CX network — operations staff, risk and compliance officers, sales and operations planning (S&OP), customer relationship managers and executives — will have the actionable intelligence they need to achieve their operational objectives. A proactive and more predictive strategy delivers huge results when it comes to improving supply chain execution convergence and optimizing order-to-cash, order-to-ship or procure-to-pay processes. It looms large in bolstering working capital. And it enables you to hone inbound and outbound logistics to become a demand-driven network. Supply chain organizations that have implemented real-time E2E visibility, analytics and actionable intelligence have achieved tremendous positive impact on their bottom line. For example: • A 3PL company saved over $8 million annually by reducing unnecessary same-day and next-business- day shipments • A global financial supply chain reduced their mean time to repair (MTTR) by 50 percent, cut by 90 percent the number of customers impacted by events over a four-year period, and saved 70,000 hours in productivity gains per year for a savings of more than $8 million annually • A CPG company improved their order-to-ship lead time performance by 15 percent • A logistics company improved their SLA adherence to reach a consistent level of 98 percent "It is not the strongest of the species that survive, or the most intelligent, but the one most responsive to change." Charles Darwin

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