Companies waste millions by not collaborating

Global companies are wasting more than $30 billion (R346 billion) a year because they do not share supplier information, according to an article on www.supplymanagement.com. Information collaboration company Achilles, which manages a global network of industry communities, says half of the $60 billion companies spend on managing supplier information is wasted.

In the UK, 31 per cent of businesses said they worked with other firms to share the administrative burden of carrying out due diligence such as pre-qualification, verification and audits. This was a little less than in the US where the figure was 32 per cent, and Nordic countries Sweden, Denmark and Norway where it was 37 per cent. In Spain 18 per cent of firms said they shared the burden with their counterparts.

Achilles' Adrian Chamberlain says it is much more efficient when whole industries agree common standards for supplier information that is not commercially sensitive, and share the administrative burden of collecting, checking and auditing it.  Details can be made available to the whole industry on a central online portal.

“There is no ‘competitive advantage’ in collecting mandatory compliance and regulatory information,” he said. “Supply chains are becoming increasingly complex so it’s in everyone’s interests to safeguard the supplier base.”

See the full story at: http://www.supplymanagement.com/news/2015/companies-wasting-billions-eve...