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The Challenge of Supply Chain Bottlenecks

The Challenge of Supply Chain Bottlenecks

Bottlenecks are a fact life in the world of procurement.  From human error (including a lapse in attention), to civil upheaval, unethical labor practices and unsafe workplaces, bottlenecks stop up the supply chain often enough that they can put a big dent in profitability.

Can procurement professionals see bottlenecks happening and what can they do to mitigate the damage once a bottleneck has been cleared?  The challenge of supply chain bottlenecks isn’t going away anytime soon, despite the best efforts of institutions to battle it.

Let’s examine some tools to make bottlenecks less of a fly in the ointment.

The Volkswagen model.

Automotive icon, Volkswagen, has developed a model to address the challenge of supply chain bottlenecks, which is in play prior to bottlenecks happening.  Technology, of course, plays a crucial role.

By maintaining communication with all the links in the supply chain (particularly those proven to be most exposed to bottlenecks), Volkswagen has managed to minimize the impact of this perennial problem.

Standardized processes allow the company to anticipate potential bottlenecks before they can become brand-damaging incidents with disproportionate impact.  Standardization brings together disparate departments who work in concert to address potential issues and resolve them.

After the blast.

A nimble response to bottlenecks which are unavoidable is also in place at Volkswagen, based on standardization and rapid communication between the links in the supply chain.

In the event of a civil disturbance or other unanticipated events, the company deploys other shipping means to reduce the amount of time lost to the bottleneck in question.

Working collaboratively, Volkswagen calls on stakeholders to arrive at an appropriate response in every instance.  Procurement never works in isolation, but with a complex of professionals who can all play a part in reducing the impact of bottlenecks.

Bottlenecks happen, but how procurement responds to them is key to successfully meeting the challenge they present.  Communication between stakeholders and across departmental lines is key to the effort.

Technology is also a critical support which helps procurement rapidly deploy solutions like the ones found by Volkswagen.  Rooted in clear communication and standardized processes, the challenge of bottlenecks can be effectively answered with creativity and innovation.

At CenterPoint, we believe there’s a solution to every supply chain problem you can name and companies like Volkswagen are leading the way.

CenterPoint Group – the power of numbers.

A member-based procurement advisor, the CenterPoint Group leverages the collective resources of our members to create the conditions required to deliver estimable cost reductions.

We give companies like yours access to superior savings on institutional needs like your corporate fleet, cell phones and janitorial supplies.  With the power of numbers, we save our members money and that’s good news for the bottom line.

If you’re ready to elevate your procurement process with the power of numbers, CenterPoint is here to help.

Contact us.  We’ll prepare a free cost analysis to demonstrate the power of procurement by the numbers.  Bottlenecks in the supply chain may be an ongoing challenge, but the professionals at CenterPoint have the nimble procurement solution.

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