For decades, organizations across the world have centered their supply chain strategies on increasing efficiency and lowering costs. Most often than not, this resulted in dependence on a single supplier for critical sub-components, sometimes based offshore.
During the COVID-19 pandemic, the world realized that the concept of increasing efficiency and lowering costs wasn't a resilient strategy to start with as a single supplier generally represents a single point of failure. The ideal way out is multisourcing or distributing the supply of critical components among a group of vendors. However, it comes with its own set of challenges but you can always count on the innovative multisourcing functionality in Microsoft Dynamics 365 Supply Chain Management.
When it comes to multisourcing, the two biggest challenges are how to split the supply of an item across multiple vendors and how to allocate the vendor for a particular purchase order. Multisourcing features in Supply Chain Management allow you to easily specify a multisource policy to identify vendors and sets targeted percentages for each of them. You can even establish minimum order quantities for each vendor as per the specific requirements of your organization. This will help you easily multisource products, diversify your supply line in size and geography, build long-term and mutually beneficial business relationships, and assess your supply risk.
Find out how your organization can leverage multisourcing and get started with sourcing products and components from multiple vendors via Microsoft Dynamics 365 Supply Chain Management. Call or email us at C.I.G Consultants now.