Five Essential Ways a Buy-Sell Solution Brings Resiliency and Agility to the Supply Chain — and the Business

Creating resilient and agile supply chains requires a platform that enables enterprises to leverage economies of scale when working with suppliers and contract manufacturers, while minimizing risk, disruptions and shortages. A buy-sell solution can increase resiliency while improving working capital and productivity.

Supplier management is a complex task. A typical business has thousands of suppliers and the relationships between them are challenging to manage. There are big advantages to consolidating these functions in order to optimize them.

With a buy-sell model, an enterprise offloads its burdensome procurement complexity to an outsourced expert. Under that alliance, the third party takes on a lot of the burden of sourcing and procurement and even provides financing, so that inventory is not carried by the enterprise, reducing supply chain risk.

This article highlights ways enterprises can benefit from a buy-sell solution, including:

Reducing inventory cost and risk: The buy-sell business partner can buy inventory on behalf of an enterprise, then hold it, only sending it to manufacturing sites as needed, as well as implementing collaboration and inventory management to ensure that the supply chain is optimized while controlling costs.

Consolidating supply base to simplify procurement: The third-party procurement service can bring down the number of suppliers, to fine tune the supplier portfolio for greater efficiency.

Leveraging scale benefits: The buy-sell strategy allows the enterprise to leverage its size to buy in bulk, without carrying a significant inventory.

Reducing the balance sheet: A buy-sell model offers opportunities to save money and reduce tying up capital, without risk to inventory normally associated with just-in-time purchasing.

Improving resiliency and agility: The buy-sell model provides companies with strong, resilient and agile supply chain capabilities to offload complex operations, improve operational efficiency, mitigate risk, tighten collaboration, and move towards a higher maturity.