By leveraging the power of a group purchasing organization, small to mid-size businesses can find ways to improve the supply chain.
Let’s face it: the last few years have been a rollercoaster for procurement and supply chain managers. You’ve probably felt the sting of disrupted shipments, skyrocketing costs, and that constant anxiety over whether you’ll be able to meet demand. From water shortages affecting the Panama Canal to inflation that won’t quit, the challenges just keep coming.
Supply Chain SNAFU
Take the infamous Ever Given – the giant container ship that got stuck in the Suez Canal back in 2021 blocked one of the busiest shipping routes in the world for six days. It sent shockwaves through global trade and made it crystal clear just how fragile our supply chains can be.
Today, there’s the ongoing port congestion that leaves vessels waiting for weeks to unload, not to mention the port worker strikes that have added even more complexity to your logistics. If you’ve been feeling the pressure, you’re definitely not alone.
Disruptions Ahead
Looking ahead to 2025, the potential for further disruptions looms large. The incoming administration’s heavy reliance on tariffs will inevitably cause a period of uncertainty and a reordering of supply chains. Other trade disputes are likely to flare up, especially around critical technologies and materials, creating uncertainty that can keep you up at night.
Cyber attacks on supply chain systems are another risk to watch out for, threatening to disrupt operations and compromise sensitive data. Plus, geopolitical flashpoints, like tensions in the Red Sea, the Black Sea and the South China Sea, could further complicate shipping routes and increase costs.
And we can’t forget about ongoing challenges here at home like port worker strikes mentioned above and worsening truck driver shortages. These issues could easily lead to more bottlenecks and delays, making it even tougher for you to keep everything running smoothly.
Improve the Supply Chain with a GPO
But there’s good news. Group purchasing organizations (GPOs) are able help you navigate these turbulent waters and improve the supply chain.
Leveraging Collective Buying Power
One of the biggest advantages of joining a GPO is the ability to leverage collective buying power. When supply gets tight, suppliers often prioritize their largest contracts to maintain business stability. For small to mid-sized businesses, this can mean getting pushed aside during crises.
By teaming up with a GPO, you gain access to larger contracts and can secure more favorable terms, ensuring you’re not overlooked when demand outstrips supply.
Enhanced Transparency & Collaboration
We’re living in a time where supply chains are becoming more transparent and collaborative. GPOs thrive in this environment, making it easier for you to tackle the challenges that lie ahead. With shared insights and resources, you can stay ahead of potential disruptions and work together with other members to strategize solutions.
Learning from Experience
In just the past year, supply chain managers have faced trade disputes, technological disruptions, and natural disasters, all while learning valuable lessons along the way. GPOs like Una facilitate the sharing of these insights, helping you implement best practices and avoid pitfalls. By joining forces, you can collectively overcome obstacles and keep your supply chains moving smoothly.
Preparing for the Unexpected
Being prepared for anything is crucial in today’s landscape. We encourage our members to establish a crisis-response team that includes procurement leaders and representatives from HR, IT, marketing, operations, and finance. This collaborative approach ensures that everyone is aligned and ready to tackle any challenges that come your way.
Identifying Contingency Suppliers
As we saw happen during the pandemic, reliance on a single source can be a risky move. A GPO can assist you in identifying contingency suppliers, providing you with alternatives should your primary source face disruptions. This flexibility can be a game-changer when unexpected issues arise.
A Smart Way to Improve the Supply Chain
In a world where suppliers may limit their customer base during tough times, joining a GPO like Una is a smart move. It allows you to harness the power of bulk purchasing, securing vital contracts with key suppliers and ensuring your organization remains competitive. With the right support, you can navigate any challenge ahead and build a resilient supply chain that stands the test of time.
Learn how Una works to transform your business with the power of group purchasing:
