Almost everything is done digitally now. The physical processes of yesteryear, like buying music CDs or depositing checks at the bank, have given way to digital processes, like streaming services and remote deposits using a cell phone. Similarly, businesses have adopted digital processes in key areas, such as sales and marketing, thereby saving time and money. Shouldn’t supply chain management be given the same digital treatment? Of course it should, because the benefits are undeniable.
Three Benefits of Digitizing Supply Chain Processes
Maintain Supplier Relationships by Paying On-time: When you’ve built a supply chain that works for your organization, the last thing you want is to lose a supplier due to non-payment. Unfortunately, there has been a steady trend over recent years of increasing delinquent invoices – those that are 90 days or more overdue – which will eventually lead to supplier turnover. In order to preserve these relationships, organizations need to ensure that their suppliers are paid on-time, if not early. Digitizing the payment process makes it easier to stay on top of invoice due dates and transferring funds. At the very least, this digital process will potentially save the time and energy in having to procure a new supplier.
Safely Store Historical Information for Easy Access and Analysis: Organizations not only have to be wary of supplier turnover, but also internal employee turnover. When an employee leaves your company with a piece of the tribal knowledge, the impact of that loss can be difficult to recover from. That’s why storing data digitally on all interactions, including invoice timing, approval status, and past payments is a smart safeguard to ensure continuity of business.
Working exclusively with digitized data also makes it much easier to search through historical information. There’s no need to dig into file cabinets for proof of payment when that evidence is just a few keystrokes away. Moreover, digital data also lends itself to easier analysis, which potentially leads to shoring up identified weaknesses. For example, payment approval processes could be examined for timings, helping to eliminate bottlenecks.
Finally, regulations regarding sensitive customer information may require a digital process. Depending on your type of business, non-compliance with a regulation like PCIDSS (Payment Card Industry Data Security Standard) could lead to a fine of $500,000. It’s typically safer to store sensitive data in the cloud rather than in a file on someone’s desk.
Less Paper Means More Environmental Sustainability: Reduce the carbon footprint of your company by moving as much of your business practices online. Not only can this save money by not having to hire secure information disposal services, like professional paper shredders, but it will also prove your company’s dedication to its corporate responsibility not to harm the environment and to use renewable resources. Sustainability is increasingly important to customers and investors, and ignoring these concerns could lead to loss of business.
Manage Your Supply Chain Digitally
Whether your company is looking to save time, spend less money, improve supplier relationships, heighten security, lessen its impact on the environment or all of these things, supply chain digitization is the first step in the right direction. Avetta recognizes these advantages and offers a proprietary SaaS platform that is highly customizable and adaptive for businesses of all sizes. Avetta’s supply chain management software helps businesses identify and mitigate risk within their supply chain through contractor prequalification, document management, auditing, employee-level qualification and training, insurance verification and business intelligence.
Learn More at Avetta.com/SupplyChainSoftware