Our previous article discussed the benefits of supply chain integration, but we also mentioned a number of potential hurdles to success. This time we will look at how a group of businesses should go about completing the process.
New systems cost a lot
An unfortunate truism – new computer systems and processes do indeed cost. There are both time and financial implications to changing the way a business implements changes to their processes and it is therefore prudent to consider such costs before making any fundamental alterations. During that review process however, you must also consider the return on investment; in the case of supply chain integration, ROI should be significantly greater than the outlay for all members of the chain.
Inter-company politics scupper integration
The way in which different businesses work often conflict with those who are trying to partner with them causing frustration and misunderstanding. The integration of computer systems can breed suspicion and lead to projects failing early on. It is therefore essential that every member of the supply chain is fully supportive of the integration efforts and that there is a mutual understanding that the implementation is designed to benefit everyone. Keep stakeholders focused by reiterating the bottom-line benefits on a regular basis.
Hosted systems can solve both dilemmas
Using a hosted system, such as Celtrino’s Smart Admin however will help to mitigate both of these problems. Using business process outsourcing, companies need only pay a subscription to use the service – it is up to the service provider to make the investments in hardware and software to make the service a reality. By using a hosted system, all members of the supply chain pay towards the service and only ever pay for what they actually use. Such an approach immediately reduces the likelihood of overspend during the implementation phase.
The use of an external, third-party hosted system also helps to make reduce the potential friction caused by integrating sensitive business systems by removing responsibility for it’s management from any single member of the supply chain. Smart Admin is designed to foster transparency between members of it’s P2P business portals and as a result, helps to increase transparency throughout each transaction. Transparency breeds trust so that in the end, everyone wins.