Supply Chain Governance

Business models around the world are changing dramatically from “Source Local” to “Source Anywhere and Build Anywhere” models. Firms have shifted away from a hierarchical, one-dimensional supply chain to a fragmented network built on strategic partnerships with external entities. Many businesses facing such a model are experiencing challenges and are struggling to compete in the new landscape. Supply chain governance can enable organizations to effectively streamline and manage their supplier quality and performance. It also helps identify, mitigate, and manage supplier risks for key procurement and manufacturing processes.

Supply Chain Governance

Need for Supply Chain Governance
Supply chain governance is critical for organizations to:

• Enable or sustain heterogeneous models of collaboration between decentralized supply chain agents
• Allow rapid integration of new partners into existing supply chains
• Allow different parties to communicate and coordinate their activities in support of end-customer fulfillment objectives
• Measure and manage suppliers for contract and SLA compliance
• Manage supply chain network agent failures and minimize:
  • Loss of revenue
  • Loss of market share
  • Brand erosion

Supplier Governance System

Benefits of MetricStream Supply Chain Governance Software Solution

• Automates end to end global supplier performance management processes
• Streamlines global procurement across the globe through supplier quality management capabilities
• Eliminates traditional sourcing models in favor of “anywhere-anytime reporting and scorecarding”
• Eliminates paper based dealings with suppliers
• Helps manage and reduce supply chain risks such as:
  • Early/late shipments or delivery to the wrong location
  • Non-conforming/wrong products or quantities
  • Supplier processes
  • Supplier country political stability and undesirable events (e.g. storms, floods, earthquakes )
  • Contract, legal, and regulatory non-conformance
  • Information system failures and compromises
• Helps audit suppliers and ensure compliance
• Provides visibility through score cards
• Enables supplier charge-backs to capture the cost of poor quality
• Enables a green supply chain through enhanced corporate social responsibility
• Enables contract compliance through an enterprise-wide document management system
• Drives ethical practices in supply chain processes such as the disclosure of conflicts of interest and the measurement of ethical labor practices

Integrated supply chains are becoming an integral part of the competitive landscape as firms seek to create strategic advantages. Along with providing economic benefits through integration, more coordinated supply chains come with certain social obligations. Many firms are developing codes of conduct as a way of managing a number of partner behaviors within the supply chain. Supply chain models have gone from the stage of integration to disintegration and finally are re-integrating through the adoption of supply chain governance.