In a rapidly changing world, sourcing and supply chain management (SCM) is under more scrutiny than ever. Risk and uncertainty have grown exponentially.

Previously reliable networks of sourcing and supply chains are being questioned, and inflating costs are causing headaches in nearly every sector. Now is the time to implement resilience sourcing & supply chain concepts by considering sustainability requirements with the help of digital enablers. Building a resilient sourcing & supply chain to adapt to the new normal is not only troubleshooting in the short-term but also a mid to long-term resilient sourcing strategy, re-shoring considerations and related transportation network. We believe that only a holistic approach including an operating model, operational processes and supplier management will enable a resilient supply chain.

We recommend five critical data-driven actions to overcome the growing challenges of sourcing and supply chain management:

  1. Risk baselining of direct material spend and your current supplier portfolio
  2. Leverage artificial intelligence to identify alternative materials, technology, and new/alternative suppliers to re-structure sourcing strategies
  3. Define smart steering model and KPIs to measure & monitor sourcing & supply chain resilience
  4. Implement data lake including 3rd party risk data to create a sourcing & supply chain data hub
  5. Build advanced analytics capability to enable a steering model of resilient and sustainable sourcing & supply chain

One key aspect is the identification and qualification of new suppliers to set up more resilient sourcing strategies with the help of artificial intelligence:

Information inquiry & technology profiling

After baselining spending & supplier portfolio a comprehensive technology questionnaire for three pilot categories of packaging material was used to set up the search case in the innovation Intelligence-System PATEV.

Include alternative sources in the sourcing strategy

The results were analysed and jointly validated by experts from the client and BearingPoint. Follow-up assessments and deep dives for alternative technology and/or suppliers were conducted to summarize results in a category playbook for the dimensions of sourcing strategy, technology, sustainability, supplier & supply chain risk and procurement processes.

Define resilience targets and measure implementation

A list of recommendations is derived from the category whitepaper and was mapped to the overall resilience KPI. An implementation roadmap, considering quick wins, was outlined to monitor successful execution.

Build your resilient sourcing strategy with the technological support of our partner PATEV to identify, evaluate and manage opportunities in finding supply alternatives. 

Let’s go together to build a resilient supply chain and thrive in the new normal.

  • How to build a resilient supply chain
    How to build a resilient supply chain 1.14 MB Download

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