The COVID-19 has been a wake-up call for CPOs that have realised that a resilient supply chain requires closer cooperation with their suppliers.
A recent study on the early impact of COVID-19 on the supply chain showed that a large number of respondents experienced a need to intensify their cooperation with their supplier network to manage their supply chain and financial risks.
CPOS identified several benefits of closer supplier integration
- Shared management of supply chain and financial risk to ensure resilient supply chain set-up
- Working capital reduction and improvement of cash outflow
- Productivity and cost-out
- Improved sustainability footprints throughout the value chain
- Increased innovation and quicker NPI (new product introduction)