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Optimize supplier relationships to guard against supply bottlenecks

Through its scalable Omnizon Extended EDI iPaaS or EDI Managed Services, OMNIZON NETWORKS GmbH supports and improves the digital transformation of operational document and data exchange.

Date 29/09/2022

Author Omnizon

At the heart of both offerings is the FunctionSuite “SupplierPortal” and by using either offering, suppliers benefit from optimal digital connections to the correspondent ERP system and they are integrated into its business applications.  This provides companies with valuable information not only about their own inventories, but also strengthens their supplier relationships so that they are always up-to-date regarding any changes in their supply chain. Because this is done digitally, automatically and revision-proofed, this “supply chain” is far more resilient than traditional paper-based corporate communications.  Additionally it lowers operational costs  and boosts profits. And through the digital Omnizon SupplierPortal, better and faster communication management helps to counteract supply bottlenecks.

 

On July 12, 2022, the “Institut für Arbeitsmarkt und Berufsforschung” (IAB) published a study on the extent to which interruptions or disruptions in the ability to supply industrial primary products or materials affected production in Germany. However, the influences of the Ukraine war were not taken into account because the study only covered the calendar year 2021.  Nevertheless, 70 percent of all companies surveyed reported impairments to their supply chain in 2021. Interestingly, the size of a company seems to play an important role. If the companies had more than 250 employees, 80 percent of them were affected more frequently by delivery failures. The reason for this is presumably because they had a large supplier network of direct and indirect suppliers, which exacerbated the level of risk. The failure rate for smaller companies was lower at 67 percent. It can be assumed here that most smaller organisations had either very few suppliers or only one supplier who had difficulties fulfilling its orders. 

But how can supply bottlenecks be countered? “First of all, it is important to understand the extent to which current inventories are sufficient to maintain production. To allow this calculation you should create the digital conditions whereby the current stock level can always be viewed,” explains Tatjana Pinhak, Regional Director DACH at OMNIZON Networks. Once you have achieved this, you can focus on the management of your suppliers. Here, the scalable Omnizon Extended EDI iPaaS or EDI Managed Services with its SupplierPortal is immediaugktely available to help you , and at a low cost.” Our SupplierPortal digitizes all connections within the supplier relationship – even if some of the suppliers are only operating on an analog basis. This allows the company to see the current delivery status of its orders with the click of a button,” she adds: The information as to whether an order has been received, read and confirmed by the supplier is immediately available on the computer: along with the details of when he wants to deliver and with which logistics provider.

 

Last but not least, the SupplierPortal uses logistics IoT to show the current location of the delivery within the supply chain, so that you stay “à Jour”. All of this happens fully automatically, without the need to print out a document. “That’s because our SupplierPortal stores documents in the e-archive in an revision-proof manner that can be retrieved at any time and is easy to find!” is how Pinhak describes this important feature of Omnizon iPaaS EDI’s SupplierPortal. It also facilitates communication with authorities, suppliers and customers through many interfaces and protocols. 

IAB: Supply bottlenecks in Germany in 2021: Companies react with adjustments in production, price and personnel: www.iab.de/194/section.aspx/Publikation/K220708S6K