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Sourcing And The Value Chain - Why Digital Platforms Matter

The inevitability of supply chain disruptions in a global environment is one that's well understood. Businesses need to employ strategies that are agile, proactive, and resilient creating a no-risk supply chain to mitigate risks and ensure business continuity. 




In today's hugely competitive business environment, both profit and customer service levels must get carefully considered, making sourcing decisions crucial but often problematic. Businesses need to consider the rationale of low-cost longer lead-time sourcing vs. more expensive nearshore and onshore more costly options, with one eye firmly on the consumer demand and satisfaction as well as the carbon footprint and sustainability. 


With a combination of these options, and with the correct level of visibility, and connectivity, the supply chain, and ultimately the value chain is not impacted. Moreover, it gets designed to mitigate risks and disruption, such as the impact we are witnessing currently due to the coronavirus - COVID-19.



In recent years, many industries have witnessed a transition from offshoring to nearshoring. This transition is a result of numerous factors to include:

  • the volatility of oil prices 
  • the need to reduce lead-times
  • modern-day high demands and expectations
  • the mitigation of potential supply chain disruptions

All of which can significantly affect the entire supply chain. 




The world is becoming increasingly volatile and uncertain; both natural and man-made disasters continually create disruptions with the power to significantly disrupt even the strongest of supply chains. Creating a truly connected digital supply chain is crucial. 

Having real and accurate visibility throughout the entire process is paramount, from:


Complete transparency and alignment must get enabled regardless of whether production takes place nearshore or offshore. If the logistics teams can see the buying patterns earlier, and the optimizers and allocators can see the production and shipping, decisions get made with certainty. 



When risk becomes apparent, having a connected ecosystem view of your entire critical path, decisions to change production origins, cycles, or capacity is not only visible to everyone but allows for proactive decision making a lot earlier. 

The supply chain entails more than just the shipping element.




Businesses must deploy strategies and tactics for building supply resilience. Using technology such as that provided by Gravity helps to mitigate risk through the provision of extensive predictive analytics delivered in real time to ensure decision-making takes place with certainty. Having a truly connected platform capturing sourcing, purchase order management, shipping, and landside to the distribution centers ensures everyone involved has sight and accurate information.  In moving away from siloed departmental functions and control, a customer-centric value chain environment gets created instead.

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