Disruptions in the supply chain are costing the UK £12 billion every year, according to the Chartered Institute of Procurement & Supply. Despite this, just 15% of businesses in the UK say they constantly keep an eye on their supply chain risks. The good news is that 85% say they have plans to use technology to get a better idea of what’s going on in their supply chain. One of the key technologies to use to do this is contract management software. So, let’s find out how this and other technologies manage supply chain risks.
Utilising contract management software
Contract management software plays a crucial role in managing multiple supply chain risks, including contract compliance, contract renewals, and performance metrics. With this technology, businesses can track key performance indicators (KPIs) and service level agreements (SLAs) to ensure that the supply chain is performing as agreed and no breaches have occurred. Some contract management software has analytics and reporting facilities built into them which provide organisations with data on trends, patterns, and potential risks. This information can be used by the business to put steps into place to prevent the risks from happening.
Keeping transport moving
Many businesses rely on transport as part of their supply chain. It may be to receive parts for manufacturing or to deliver goods. However, transport is a big supply chain risk as there are more than 125,000 road accidents every year in the UK. When a truck in a business’s supply chain is involved in an accident it can have a big impact as this increases the risk of property damage and lost property. Plus, the driver is likely to have injuries and a truck accident attorney may get involved to assess the legalities of the case. This can increase downtime as vehicle images and statements will be needed. It’s best to deal with this supply chain disruption as quickly as possible. Telematics can be installed in vehicles to provide real-time data on the vehicle. It can also be reviewed if there’s an accident to determine fault. Meanwhile, GPS will send out immediate details of the vehicle’s location. Supply chain visibility solutions are another option as they use technology that tracks the movement of goods. When it identifies the shipment has been in an accident, it sends an alert that prompts the business to act.
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Improving the supply chain
Supply chain risks occur when businesses don’t stay on top of them and fail to make improvements. Various technologies can prevent this from happening, including business intelligence tools and artificial intelligence (AI). Business intelligence software lets businesses use dashboards and reports to see patterns in supply chain risks. Whereas, AI can predict potential risks based on historical data. Both of these technologies allow organisations to proactively take steps to improve their supply chain so that something disastrous doesn't arise.
A business’s supply chain can make or break a business. For this reason, the latest technology should be implemented to ensure that it’s as smooth as possible.