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Blog Post: How Deep Is Your Supply Chain?

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You may have a long list of suppliers but do you know whether your suppliers use other suppliers to get the products you need?  Deep, complex supply chains can be difficult to manage.  What’s worse is that if there is a hiccup with a supplier deep in the supply chain, it could impact your ability to satisfy your customers.

A complex supply chain can be difficult to manage, especially when relying on basic software solutions or spreadsheets.  Your procurement team may be able to determine where to buy certain inventory items but do they know whether the primary supplier provides them or if items come from another supplier?  It is not unusual for a supplier to be a pass through or distributor for other suppliers. 

Problems with a complex supply chain often include delays in getting the items needed for your own manufacturing or distribution operations.  Suppliers could provide the wrong items, wrong quantities of items, or the quality of the items could be subpar.  As a result, your team could be using the wrong or poor quality items in manufacturing or distribution operations and pass those products to customers.  You could end up with unsatisfied customers and expensive consequences of replacing those items, as well as damage to your reputation.

An enterprise resource planning (ERP) solution can provide a solid foundation for managing your supply chain, no matter how deep it can get.  You can organize all of your supplier data within this solution, including the products you order, price structures, delivery options and schedules, and more.  You can also work closely with suppliers to determine which items they get from suppliers further down the line and keep records for those details.  The more you can learn about your suppliers and their suppliers, the better prepared you can be for your own operations. 

Should you experience a high volume in customer orders or need to respond quickly to a change order, you can quickly and easily access supplier data from your ERP solution.  You can find a supplier that has the inventory you need at a price that protects profit margins.  You can also quickly choose alternate suppliers should a supplier be unable to satisfy your volume or quality needs.

An ERP solution can provide the visibility and control you need with a complex supply chain.  Contact OmniVue for more information about finding the right ERP solution for your business needs.

By OmniVue, Georgia Microsoft Dynamics ERP and CRM Partner


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