Due to the pandemic in 2020, many companies and businesses faced the brutal consequences of not diversifying or localising supply chains to be more resilient during unprecedented events including climate extremes and geopolitical tensions.  

Many organisations faced supply shortages as a result and were unsure of when or where they were able to source additional stock. In fact, 72% of companies with supply chain reliance reported experiencing negative impacts due to the covid disruptions, therefore they were unable to meet customer demands by providing goods and services.  

Post-2020, it is even more essential for businesses to consider diversifying supply chains so you no longer have to rely on one supplier. Here’s everything you need to know about how modernising your supply chain with Authenticate’s supply chain software can help strengthen supplier network visibility. 

What is supply chain mapping and transparency software?

Mapping is the process in which a company identifies direct and indirect suppliers and logistics providers through the tiers and back to source for all components of a product. 

This process can be incredibly complex, especially if a company has many products and international suppliers. Traditional supply chain audit and tracking is typically difficult due to its complexities, but supply chain management software developed by a company like Authenticate can help make this process a whole lot easier. 

By increasing supply chain transparency with management systems, you can easily see your suppliers, where they’re based and conduct appropriate risk management investigations using other tools including digital audits, KPI data collection and certification checks. In the long term, your company can utilise the enhanced visibility and insight to work with companies who align with your values and meet relevant regulatory requirements. 

Being able to report on supply chain transparency progress can also increase customer trust, but also the trust of partners who only want to invest in responsible companies. With the use of a specialist software, companies can drive process efficiencies and make supply chain savings. 

The benefits of localising your supply chain 

  • Enhanced supply chain resilience 
  • Faster response times 
  • Cost savings 
  • Improved quality control 
  • Enhanced customer satisfaction 
  • Sustainability and reduced carbon footprint 
  • Increased visibility and transparency 
  • Flexibility and agility 
  • Job creation and economic growth 
  • Compliance with local regulations 

How to localise and diversify your supply chain with SCM software

With the turn of the new decade, the spread of Covid-19 across the world severely impacted how companies source their products and services. With countries like China implementing strict policies, many companies were left without products to deliver to consumers. 

Companies turned to supplier diversification tactics and even localised their supplier base to ensure a less complicated and more reliable operations model to reduce risks and build multiple source options for a particular product or service. 

Whether you source raw materials, IT services, meats or vegetables, you should have a range of suppliers, including local supply chains,  to ensure the smooth running of your business. Supply chain software companies like Authenticate can help to build the supplier visibility you need to implement localisation and diversification strategies .. 

Transparency is also essential when auditing your supply chain. Using Authenticate’s supply chain software, you can see if suppliers meet assurance standards, request and share policies concerning environmental and social matters, and capture data through audits, specifications and KPIs to monitor and improve performance. 

Leveraging increases supply chain visibility through transparency technology, you can find suppliers that meet the needs of your company, from efficiency, reliability and ethics. You can assess your existing supply chain and establish if they align with your environmental, social and governance strategies. 

With Authenticate’s software, you can assess weak areas in your supply chain model and rectify them ahead of time. Perhaps when you know a supplier is based in a country with an unstable economy or known environmental risks, you can diversify your sourcing approach to a more suitable alternative 

Ultimately, this leads to a stronger business that can face challenges head on, with multiple avenues to rely on rather than one supplier to avoid instability within your business. 

If you want to increase supply network visibility using specialist supply chain mapping/transparency software, so you can be prepared for any challenges, contact Authenticate today for our logistics and effective supply chain management. 

For more information on the Authenticate platform or to discuss your challenges and requirements, get in touch with the team.