Now, more than ever, you need to create a smarter supply chain that enables greater data visibility, higher data quality, and deeper collaboration. That’s the only way you’re going to keep your production lines running, quality product moving out the door, and your customers happy.
Read on for 3 reasons why you need a smarter supply chain:
- Quality standards are getting tougher. IATF 16949:2016 (coming in September) adds new definitions and requirements around counterfeit parts, product safety, ethical behavior, human factors, data management, and obsolescence. It also specifies a range of requirement around documentation. Think your supply chain has what it takes to meet those requirements?
- The cost of failure is high. Consider the $105 million fine levied against Fiat Chrysler for faulty suspension parts that can cause a loss of control. Consider, too, that a production shutdown costs an automotive manufacturer an average of $22,000 per minute.Can your company afford to lose that much money because of poor quality parts or a shutdown because a supplier failed to deliver on time?
- Spreadsheets are unreliable. Ventana Research reports that 92% of manufacturing companies are using spreadsheets regularly as a means of sharing business data. Yet, spreadsheets are notoriously unreliable. By the time you add the data and email it out to your suppliers, chances are it’s already out-of-date. And that’s assuming that the data in the spreadsheet was accurate to begin with. Research has found that up to 90% of all spreadsheets have errors that affect their results. Do you really want to play those odds?
To overcome these challenges, you need to create a smarter supply chain—one that’s interconnected and deeply collaborative. With an interconnected, collaborative supply chain, you can view your own parts inventory and the inventory of your suppliers in real-time, to avoid nasty surprises and possible production shutdowns.
Everyone along your supply chain needs to work together to reduce informational silos, establish one accurate version of the truth, and share accurate information in real-time. When everyone works collaboratively, you can recognize potential problems before they happen and turn to alternative suppliers, if need be.
A cloud-based portal gives you a simple, yet powerful tool for creating one system of record for collecting and normalizing data and then pushing it down to transactional systems. With everyone operating from the same set of information, it’s possible to collaborate more effectively with your suppliers to improve quality, avoid production glitches, and improve innovation.
Learn more by reading “Mitigate Supply Chain Risk by Mastering Collaboration.”