PAPER-BASED PROCESSES CAUSE DELAYS

 

Delays are arguably one of the biggest supply chain challenges. Paper-based processes are a significant component of this issue. When orders, paper delivery notes and invoices are created, because of lack of visibility into stock levels available, what is ordered and what is actually delivered may not be the same. This simply means that the invoice then requires to be revised on delivery. Credit notes must be passed, or new invoices generated, creating additional timelines and complexities. This could also lead to wrong billing, loss of stock, loss of income and other financial effects. A live view of stock levels and the ability to generate a precise invoice on delivery will mitigate these challenges, decrease delays and improve the accuracy of orders, billing and payments received.

 

INEFFICIENCIES CAN COST MILLIONS

 

The inefficiency of processes and the reliance on paper-based processes indicates players in the supply chain are not able to manage what is really being ordered and paid for. It is not possible to collect the correct payment on orders if there's no visibility into what orders have been placed and actually delivered. This could, and often does, lead to significant loss. In addition to that, FMCG goods are easily stolen and readily convertible to cash. Without visibility into orders placed and delivered it is not possible to know if stock is being stolen. Most of these issues are difficult to recognize and quantify without live or real-time information and insight.

 

GOVERNANCE CHALLENGES

 

The lack of visibleness into stock levels points to governance challenges, since there is no visibility in the process. The ability to manage stock levels, receipts issued and cash collected is vital, and players in the supply chain need to have a full view of stock in, stock out, payments collected, invoices issued and more. Governance across all of these touchpoints is vital for a profitable business, which requires integrated systems and line of sight across the entire supply chain from start to finish.

 

CLOSING THE LOOP

 

An extra challenge for parties in the supply chain is the inability to influence consumer behaviour. To make sure of maximum success and profitability it is necessary to engage retailers and consumers using loyalty, rewards programs and incentives. This requires an end-to-end ecosystem to link the manufacturer to the consumer and the consumer back to the manufacturer. This last mile is a must to fully deliver a transparent supply chain.

 

END-TO-END VISIBILITY

 

Dealing with these challenges requires an integrated mobility and cloud-based system that delivers the required visibility across the supply chain. An ecosystem that delivers a direct ordering platform between the distributor and the manufacturer, with real-time stock levels and online ordering capability, can significantly improve functionality at the first stage. Vendors can better handle their stock levels, warehousing and personnel, and stock can be traced at any point no matter where in its journey it is.

 

Sellers are enabled to generate clean invoices on delivery and deliver accurate orders to stores because they have visibility into manufacturers. Sellers have visibility and only need to pay for what they ordered and actually received. The demand for credit notes to be passed is all but erased. Debtors and creditors can be incorporated into the eco-system for enhanced financial management. Furthermore, the loop can be closed to include loyalty programs and activations, giving full line of sight.

 

Prepared with this data, manufacturers, suppliers and shops will be able to make use of good dashboards to interpret data against key performance indicators and deliver real-time actionable insight. Structured reports can be pulled any time, and automatic alerts can be configured if any exceptions occur. This enables real-time business management. Digital transformation of the supply chain will also enable data to be utilised for predictive analytics, enabling more agile and effective decision-making across the board.

 

This article is originally posted on TRONSERVE.COM