Supply chain optimization moves slowly. Under typical optimization strategies, improvements are made incrementally and assessed to determine their overall impact on business performance. With this as the norm, it’s understandable that risk averse supply chain executives are given pause by new solutions that completely change the way that operators view their supply chains. It feels safer to maintain the status quo—but when areas of inefficiency or opportunities to optimize exist, the status quo can be more harmful than helpful.
The Opportunity Cost of the Status Quo
While conservative philosophies about supply chain improvement may feel safe in the short-term, failing to adapt comes at a price. The argument against advancement is rooted in the mentality that if a supply chain isn’t broken, it shouldn’t be fixed. Supply chain executives may see a functional supply chain and assume that any new system of management will be disruptive to established workflows and will reduce efficiency.
However, this mindset does not take into account a central tenet of supply chain efficiency: A functional supply chain is not the same as an optimized supply chain. This brings us to the economic principle of opportunity cost, i.e., what benefits are given up in exchange for maintaining the status quo?
For example, without a method for assessing supply chain performance end-to-end, the average supply chain may suffer from numerous vulnerabilities and inefficiencies. When data from each supplier’s ERP is audited on its own, there is no simple way to see the big picture—how the entire end-to-end system fits together and where the opportunities are for improvement. As a supply chain scales, these issues will also scale, and the inefficiencies will multiply. In this case, failing to act and resolve these problems is far more unproductive than acting to correct them.
Now, consider that no supply chain is free from error—even the most efficient businesses have room for improvement. And when groundbreaking, new solutions for supply chain optimization are available, failing to act may significantly impact business profitability. This brings us to ChronosCloud and the new methods of supply chain control it offers.
The Benefits of ChronosCloud
The end-to-end visibility offered by a cloud-based, enterprise platform like ChronosCloud helps move the supply chain from mere business process to an area of competitive advantage.
ChronosCloud revolutionizes supply chain management by providing a comprehensive platform for end-to-end visibility of supply chain touchpoints. The platform integrates with existing ERP data, then uses a series of APIs to perform targeted data integrations from each vendor, supplier, and distributor in the supply chain. This allows ChronosCloud to provide a complete end-to-end view of supply chain function, improving visibility of all processes and documenting touchpoints for later review. This system gathers all relevant data from each supplier’s legacy system, normalizes it in the cloud, and prepares it for future assessment.
Contrast this system with traditional supply chain management, wherein individual systems used by each supplier must be assessed on their own. Examining each vendor touchpoint as a siloed process prevents operators from assessing supply chain performance as a whole, prevents monitoring the comparative performance of each supplier, and reduces the ability of the supply chain operator to make informed decisions.
This is the value of ChronosCloud and why maintaining the status quo isn’t always the best move. Until the advent of ChronosCloud, supply chain operators had no other choice than to work within imperfect systems to manage their supply chains. But as platforms like ChronosCloud make their way into the market, more supply chain executives will begin to see the value they provide and why they shouldn’t limit themselves by sticking to limited optimization practices.
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