B2B Eases Supply Chain Disruptions via Digitization
B2B companies have invested more substantially post-pandemic to help offset the supply chain issues that greatly disrupted their business processes in the last few years. These businesses expect their investments to pay off by ensuring that these systems improve the efficiency of their processes for purchasing goods and services during normal business conditions and enabling quicker responses to future disruption.
Lessons Learned from Supply Chain Disruptions
Businesses learned two critical lessons from the pandemic regarding the supply chain disruptions:
- Run tighter control of key payment processes, especially procurement.
- Digital technology is essential to achieve and sustain these desired outcomes.
Pymnts.com conducted a survey of 500 CFOS from healthcare, finance, insurance, retail, and manufacturing companies to see how they are investing in digital payment technologies to solve for procurement issues that impacted their supply chains. Here is what they found:
1. Companies are focused on improving their supply chain and logistics management functions.
Many businesses are focusing on improving the functions for supplier data, such as real-time inventory information and supply chain analytics. These supplier data systems can help businesses improve their planning and forecasting while providing them with the data needed to make adjustments if there is a surge in demand or a shortage.
2. B2B is focused on procurement technology investments to improve operations and grow business.
Pymnts.com found that the top industries that are investing in digital procurement technologies are the retail and manufacturing industries. On the other hand, healthcare companies and finance and insurance businesses are placing a greater emphasis on making these investments to expand their businesses.
3. Retail and manufacturing companies are investing in technology to improve procurement operations and limit supply chain disruptions.
Retailers and manufacturers depend on a steady flow of products for their shelves and raw materials to make goods. That may explain why 31% of retailers are investing in procurement systems and 53% plan to do so. Among manufacturers, 42% are already investing in upgrading their procurement technology, with another 44% planning to invest in this area.
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