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While a technology-driven approach to supply chain management is crucial to minimizing business disruption , it is only as good as the parties that populate it
However , the most important step we have taken , spurred on by the pressures put on our supply chain by the geopolitical climate , has been accelerating the development of a supply chain collaboration tool specifically designed to improve the transparency of the data we share with our vendors .
Currently , a working version of the tool which has already been implemented as a pilot and is now in the process of being rolled out globally , allows our partners to access relevant data so they can make their own plans and adjustments based on what they see . The tool ensures data accuracy and alignment on both the vendor and buyer side , as well as speed of transmission .
Future releases may also go further , showing where bottlenecks exist so our vendors can understand how far in advance they need to place orders , or how to reshape or reshuffle the mix of products they are ordering .
We also plan to introduce specific modules or functionalities that can help with risk assessment by assigning a criticality level to each order . This would allow users to crosscheck the product to give them a full picture of their risk exposure .
Leaning on each other
While a technology-driven approach to supply chain management is crucial to minimizing business disruption , it is only as good as the parties that populate it . For this reason , we are encouraging our vendors and customers to share their data as openly as possible . The foundations of data transparency lie in twoway communication and a shared willingness to create it .
Moreover , communication is crucial not just between supply chain actors , but also cross-functionally . For example , if we have a customer tell us they are struggling to deliver on a specific item perhaps because there is a component material or chemical substance that is increasingly hard to source or is going to be discontinued , we can put our heads together to find a solution , bringing in other departments where necessary . Can we find a potential alternative technical solution ? How can we help each other ? When you are lacking predictability , the only way to minimize surprises is to communicate as much as you can .
As we continue to build our supply chain tool , we will be involving our partners at every stage of the development process to incorporate the lessons learned along the way . The more we can join forces and work together , the more we will be able to speed up the overall transformation program .
The only way to successfully navigate the ever-evolving supply landscape is to lean on each other and collaborate to take stock of data . By doing this , we will counter supply chain vulnerability . ■
Sara Cattaneo www . abb . com
Sara Cattaneo is Chief Procurement Officer at ABB , a leading global technology company that energizes the transformation of society and industry to achieve a more productive , sustainable future . By connecting software to its electrification , robotics , automation and motion portfolio , ABB pushes the boundaries of technology to drive performance to new levels . With a history of excellence stretching back more than 130 years , ABB ’ s success is driven by about 105,000 talented employees in over 100 countries .
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