Whether it’s escalating trade disputes, fluctuating exchange rates, or unforeseen supply chain disruptions: the ability to manage working capital can make or break a company’s survival and success. But how do optimise your working capital? At what functions do you start? How do you gain insight into your demand? And how do you ensure to incorporate a resilient system in your organisation?
It all starts at collaboration between Sales, Operations and Supply functions through harnessing collaborative processes. A well-functioning S&OP systematic enables to align functional areas closely, ensuring business continuity and agility in the face of supply chain disruptions. Why? Because relying on conventional collaboration methods such as email and spreadsheets can result in outdated data usage and suboptimal solutions. Quickly. Conversely, connected sales, sourcing and planning bolster decision-making processes, eliminate communication silos, grant real-time data access, help align functional targets, and fortify cross-functional relationships.
So, how do you work towards this resilient system that helps you to carefully optimise the level of capital that is tied to the business?
Boost collaboration between Sales, Operations and Supply
For enhanced collaboration, eradicate organisational silos, and replace or supplement manual methods with demand, planning and sourcing software platforms for real-time data sharing.
Encourage leaders’ support—now and for the long-haul
Significant improvements stem from senior leaders’ involvement, advocating for enhanced cross-functional collaboration as an ongoing priority, rather than a singular functional project.
Physically unite teams—literally
Enhance collaboration by having planning personnel attend supplier meetings alongside sourcing colleagues, enabling them to interpret the same information. Physical proximity, whether in the office or via technology in remote setups, promotes more accurate forecasting and better supplier relationship management.
Focus on visibility and usability when selecting tech
Choose a technology platform that ensures planning and sourcing teams access the same data, and it should be user-friendly to maximise employee engagement.
Streamline and improve processes
Take time to truly understand your organisation’s processes and assess how these might need to change and be supported by technology. Implementing advanced technology over flawed processes is futile. Implementing systems to frame processes is devastating.
Involve key stakeholders
Engage end-users early in the technology selection process, collecting input on existing process & technology strengths and weaknesses, and addressing concerns about adopting new systems ways of working. This approach promotes ownership and buy-in.
Conduct regular audits
Once new tools and processes are in place, verify that they’re utilised correctly through regular audits. Aligned metrics for sales, planning and sourcing are crucial for optimal results.
Implementing these steps effectively can ensure your organisation’s readiness to adapt to economic uncertainty, thereby building a more secure future for your business.
