What can you do with open lines of communication and more information? Easy: Act smarter. Take into account what you know—and what you don’t know—in all aspects of your procurement and supply chain functions. Consider the case mentioned earlier, of a supplier showing signs of financial insolvency. Do you have a plan in place for what to do if that supplier goes down? If not, now you know it’s time to establish one—before you actually need to put it in action. Whether it’s inquiring about troubling warning signs or directly responding to a catastrophe, collaboration is going to enable you to know more, know it sooner and make decisions based on it.
Bottom line: A collaborative supply network is going to make your business run better. Don’t isolate yourself from your business partners, and don’t let them isolate themselves. Make sure collaboration is one of your supply chain KPIs—it’ll make not only your supply network, but your entire business, more resilient.