Internal Supplier Data management is getting more complex for large enterprises consistently. With data doubling after every 18 months, companies are having to cope with supplier data challenges like managing the scale, security, and quality of the various elements. The rise of global and complex business networks implies that a majority of data will be generated outside the company’s firewall and traditional ERP systems, and IT infrastructures will not have all the answers. This new business of global commerce has forced businesses to move past their mission-critical systems towards a global innovative and collaborative platform that partners whole ecosystems, enabled by business networks.
Below we have listed some internal supplier data challenges that companies face as they manage the scale, quality and security of data in the supply chain.
Five Internal Supplier Data Challenges
Most companies are supply-chain data blind
Because eighty percent of a company’s data is set outside their ERP systems of record, some enterprises are supply-chain data blind. That is why it isn’t surprising, that variability is very common in many data supply chains. While 95 percent of orders reach their destinations on time, the remaining orders require companies to carry excess inventories. Global companies particularly have long lead times. These are perilous and complicated supply chains with complicates internal supplier data challenges. It is the reason why most companies find it hard to determine the cause of variability and thereby unable to cut the cost of carrying more inventory.
Eighty percent of the supply chain data set is outside the enterprise
Inter-business commerce data is rich and big. But only about twenty percent of the supply-chain data set is internal. The remaining eighty percent is contributed by outside sources and external partners. Large manufacturers and retailers need to collaborate with hundreds of logistic service providers and partners to track products, and run purchase-to-pay programs in the supply chain processes. With upwards of eighty percent of the supply-chain data residing outside the enterprise, companies are continually starved of well-detailed transaction records.
Garbage in, garbage out
The quality of data is another internal supplier data challenges. It needs to be addressed by introducing a full vendor portal with active supplier network interaction. There two main issues that this can lead to are, taxonomy issues about naming conventions and data, unreliable, un-actionable data across the enterprise.
Supply chains in different industries use radically distinct models
The supply chain of a footwear company is different from the supply chain of a major electronics manufacturer. They have different drivers, business models, and company rules. However, both of these supply chains make use of a shared service provider section that includes truckers, customs brokers, carriers, and consolidators. Due to the siloed form of IT infrastructure, the advantages of fixing data feeds for one client in one industry doesn’t always flow to another even though the data feed may be common to both sectors.
Lack of common a platform for building communities and collaboration
With disparate systems and the lack of an integrated informational model, most companies cannot create collaborative sections across their network of partners or enable massively scalable information-sharing. Once communities are linked together, they can join in sharing the best practices that can help to improve the quality of data. They can establish a blog, send a signal and post a comment. This will enable participants in the supply chain collaborate on business topics. Five Internal Supplier Data Challenges