Success with Supply Chain Management: Gain Control and Reduce Costs by Eliminating Silo Buying

Tags: Operations Management, Software - Supply Chain, Systems / Technology

Type: White Paper

Our changing economy has pushed all companies to examine each part of their operation to find ways of doing more with less. Efforts to use less people, less time and lower the overall impact to the bottom line have caused companies to examine their procurement and distribution processes. Many companies now report procurement functions directly to a company president, CFO or board of directors. This is happening because procurement and distribution tasks are a major area where a company can create cost savings and efficiencies.

With an increased exposure of procurement and distribution tasks, companies are discovering these tasks are spread across several individuals in their organization, each responsible for supplier selecting, budgeting, executing ordering, invoice approval, directing distribution and managing supplier relationships for their individual departments. This procurement model is called 'Silo Buying,' meaning, each department in the organization is lacking knowledge and awareness of what other departments are doing.

Read this paper from DataSource to see how a Supply Chain Management company can take a total vision of a company's activities, leveraging a larger overall spend to standardize procurement, while taking advantage of over capacities in different markets.