How will blockchain revolutionize procurement supply chain?
How will blockchain revolutionize procurement supply chain?
Even as the world moves towards a more efficient future, blockchain is slowly but surely transforming B2B transactions on a global scale today. In fact, the total number of B2B cross-border blockchain transactions is projected to surpass 1.7 billion by 2025. The UAE, in particular, is a region of interest because it is quickly emerging as one of the most preferred markets for blockchain startups and businesses.
In a world where blockchain is gaining increasing prominence by the day, businesses need to be equipped to tap into this technology optimally. And where better to begin than the fundamentals?
Beginning at the basics: What is blockchain?
The word ‘blockchain’ is everywhere now, but businesses need to understand what it is all about to truly make the most of this new technology. Simply put, a blockchain is a decentralized and immutable digital ledger. Blockchain technology uses this concept to facilitate transparent yet secure data sharing across a network.
The role of blockchain technology in UAE’s vision for the future
In the journey to the future, the United Arab Emirates has always been one step ahead. So, when blockchain emerged as a potential contender for technologies that could shape the world in the coming years, the UAE embraced it and how! The launch of the Emirates Blockchain Strategy 2021 and the Dubai Blockchain Strategy are some of the most relevant examples in this regard.
Further, the Dubai Future Foundation also established the Global Blockchain Council to explore the possible applications of this futuristic technology. Amid this dedicated focus on blockchain in the UAE, businesses in the region must understand how technology can revolutionize the procurement supply chain.
Three ways in which blockchain can revolutionize the procurement supply chain
Here is how blockchain technology can add value to your procurement supply chain.
The creation of smart contracts
Blockchain can be pivotal to creating smart and tamper-proof vendor contracts. These contracts can support multi-party agreements and even be self-executed, so payments occur on time.
Enhanced supply chain transparency
Improved transparency and visibility across the supply chain make vendor management more efficient for your business. With blockchain, you get the benefit of audit trails, better traceability and verifiable supplier credentials across the procurement cycle.
Streamlined purchase management
Purchase management is a crucial part of the procurement supply chain. Blockchain technology can be a game-changer since it facilitates more efficient order approvals, quicker invoice processing, and a more streamlined procure-to-pay cycle.
The first step in the blockchain-led revolution
Digitalization is the first step that will make your business ready, for when you would need to take that leap into the future of procurement supply chain using blockchain technology. Moglix facilitates has been working with organisations digitally transforming their procurement supply chain. Contact us today to learn more about how your business can keep pace with the newest trend in the UAE’s B2B landscape.
Need for a holistic strategy to maximize ROI across the supply chain
Need for a holistic strategy to maximize ROI across the supply chain
The immediate purpose of supply chain lies in delivering a customer experience that satisfies expectations and fulfils contractual obligations between the supplier and the buyer, with an ultimate outlook of increasing market share while mitigating risk and reducing costs. This is a demand-driven business model; one that functions as a blueprint for creating an integrated supply chain system where customers’ demand and their satisfaction guides day-to-day decisions and longer-term market strategy.
To this effect, there are various key supply chain links that must be addressed as a part of a holistic strategy for meeting customer demand and optimising the processes of procurement, production, distribution, and inventory-keeping.
Maintaining Organizational Agility
Envisioning a sustainable supply chain management system must begin with an initial and pervasive attitude of being quick and efficient in responded to both expected and unexpected disruptions.
“Managing the key supply chain links is the core of adopting a customer-focused approach to business, ultimately leading to satisfying customer demands, and fulfilling contracts to the letter.”
adds Piyush
Moglix – Reimaging manufacturing infrastructure in the UAE
Moglix – Reimaging manufacturing infrastructure in the UAE
UAE lies at the crossroads of the manufacturing supply chain routes that crisscross across the world. Technology penetration in the Middle East region has already attained a threshold level which is visible from the success of B2C e-commerce. So, technology adoption is not a challenge. Rather the challenges we have been resolving in the Middle East are those related to limited product assortment of suppliers, costs of distribution, warehousing, and logistics, and enabling manufacturers realize their mandate for creating end-customer value.
Since launching in the UAE, we have channeled existing partnerships to secure symbiotic collaborations across manufacturers, suppliers, distributors, specialists, and consultants. The B2B e-commerce platform, moglix.ae, provides a catalog of over 500,000 industrial products spanning 50+ categories. It provides insights on metrics like the expected time of arrival, lead time, and the turnaround time. Such data enables agility at scale in procurement decision-making frameworks for customers and suppliers. They ensure that end-to-end supply chains can withstand macroeconomic shocks and disruptions.
Silver bullet to mitigate Supply Chain Disruptions
Silver bullet to mitigate Supply Chain Disruptions
The manufacturing sector in the middle east, prior to the pandemic, relied on a highly fragmented supplier base, and with a few exceptions, it wasn’t standard practice to replace the many suppliers with a few or just one. A manual and relationship-led procurement and supplier management process meant limited adoption of digital tools such as ERP systems. COVID-19, though has been an epic tipping point for the intense digital transformation of the supply chain industry in the Middle East region.
According to market analysts Ventures Middle East, digital transformation initiatives in supply chain have become increasingly powerful and businesses that make use of it are expected to stay resilient. The Gulf Cooperation Council (GCC) countries are expected to continue to invest heavily in digital transformation solutions in supply chain as it tries to enhance its position as a hub for international commerce in a pandemic scenario as well.
Well-planned and well-implemented digital transformation offers the opportunity to leapfrog to a new, digitally-enabled future ahead of competition, crises, and most importantly, customer expectations.
Next for Digital Supply Chain Transformation: Connectivity, Convenience, and Analytics
The dramatic shift towards a digital supply chain has been all too evident post-pandemic, with a full realization that it not only makes them more competitive and resilient – there is also an economic upside.
The Global Supply Chain Crisis: What’s in store for 2022?
The Global Supply Chain Crisis: What’s in store for 2022?
We wish there was good news. We wish there were even regular news. Alas, as we have gone deeper into 2022, our crystal ball does not have the clarity to report. Just as we’re hoping that we are seeing the back of COVID19 disruptions in global economic trade, supply chain, and logistics, we can already see new crises on the horizon.
Market Sentiment, Challenges, and the Supply Chain Connect
Last week, the International Monetary Fund (IMF) downgraded its global economic growth forecast by half a percent to 4.4. In doing so, it cited supply chain issues as a primary reason that is pulling the optimism around growth downward.
It’s not that the pandemic-related issues are simply going to vanish, but that the fragility of our supply chain ecosystem stands exposed. We also heard of COVID19 shutdowns in China, a vital piece of the global supply chain jigsaw puzzle. Expect the unexpected.
The world is also acutely aware of the conflict in Eastern Europe and its implications on global supply chains. The cross-border war has fractured the global manufacturing supply chain community into diverse groups, impacting import-export schedules, and affecting embargos, trade routes, and more.
On the other hand, the standoff between the two major economies of Asia is adding to the woes of local manufacturers and suppliers. It has given rise to a race – to gain supremacy and control on the best maritime trade routes to enable predictable, safe, and cost-effective movement of goods.
The 4Ms of Global Supply Chain Diversification as a Response
In short, we could all use a breather. A 4-M model could provide respite for organizations exposed to the intricacies and lack of predictability in the supply chain.
- Multi-Commodity: It is time for organizations to look at a broader range of products to diversify risk and tide over difficult times. By going wide and searching for alternatives, we can insulate ourselves against geopolitical risk and region-specific blockades to a more considerable extent.
- Multi-Supplier: As the name suggests, manufacturers should look at a broader supplier base for the same materials. While this may seem counter-productive for vendor management, the risk of receiving critical supplies from a select group of vendors is more dangerous.
- Multi-Modal Logistics – We must look at a more flexible and robust combination of logistics modes rather than depend on the tried and tested formula. The choice between air, land, and sea must be balanced to avoid last-minute surprises.
- Multi-Routes – Organizations are advised to select a combination of safer routes (green/yellow classifications) to ensure supplies emanating from different geographical areas do not face disruption.
In essence, in the coming years, businesses need to be resilient and flexible so they can be better at anticipating, reacting, planning, and recalibrating against the unexpected by developing long-term strategies and solutions; and enabling cross-functional integration and collaboration within their ecosystem of vendors.
Understanding the depth of your procurement and supply chain database by automating the collection, integration, analysis, reporting, alerting, and visualization of your supply chain data can help you recognize risk early and actually do something about it.
To experience an increased visibility and transparency in your operation process, let your sourcing and procurement teams have access to real-time visibility and data so they can be gung-ho!
Avengers Assemble: Manufacturing Technologies as Superheroes
Avengers Assemble: Manufacturing Technologies as Superheroes
While the future of manufacturing is endless; today UAE is at the helm of all digital transformations and an emerging manufacturing leader from the COVID19 pandemic endgame within the Middle East and North Africa (MENA) region. Just like Avengers are a group of superheroes working together – that defines an individual collaborative ‘single platform’ solution, Batman is the new kid in the manufacturing block leading the forces towards the technological future we deserve.
While there are multiple competitive businesses rising within the horizon, like a phoenix born to life, manufacturing ‘futuristic’ technologies just like the Marvel series is an individual solution for all manufacturing supply chain management needs.
The UAE Economic Vision 2030 seeks to shed this tag. As the world grapples with the aftermath of the pandemic, UAE aims to invest more in adopting advanced technologies to establish itself as a world-class manufacturing hub for decades to come. The Government has an ambitious aim to increase the contribution of manufacturing in the GDP from 11% to 25%. It seems that this enormous task befits the Avengers from the Marvel Cinematic Universe.
The Avengers Assemble: Know the Start Cast of Manufacturing Technology Superheroes
Dubai’s commitment to adopt the latest manufacturing technologies like artificial intelligence, machine learning, 3D Printing, and Smart Manufacturing is directly responsible for its rise as a global technology and innovation hub. This blog aims to equate these cutting-edge technologies to pop culture Avenger superheroes. The UAE seeks to assemble an ensemble cast that ushers in a new era of success.
Smart Helmets/3D printing – Enter Iron Man
Dubai is one of the world’s foremost travel hubs, with nearly a billion footfalls every year. The pandemic posed a considerable challenge to ensure proper safety protocols and healthcare access. Just like Iron Man has a Jarvis-enabled helmet, Dubai equipped staff with thermal helmets that allowed them to scan more than 200 travelers per minute. Innovative 3D printing technologies ensured there was no shortage of face shields. Just like Iron Man likes to tinker in his lab, Dubai is fast becoming a hub for product design and digital transformation.
4th Industrial Revolution (4IR) – Age of Ultron
A global revolution was exactly what Ultron had planned. The Ministry of Industry and Advanced Technology push is instrumental in the set-up, deployment, and investment into AI/ML, robotics, big data, and alternative energy sources. 4IR is also directly linked to supply chain efficiency and resilience. Talent and skilled resource development are also a must if the UAE is serious about creating the type of impact that Ultron had envisioned.
Laser Testing and Processing – Vision for a Vision
Dubai and the large cross-section of UAE geographies are fast building a reputation as a source for precision engineering and laser testing. The credibility set can help unlock the true potential of industry hubs like energy, chemicals, plastics, metals, heavy manufacturing, healthcare and electrical equipment, with a renewed focus on agri-tech, biotech, advanced manufacturing and space.
Digital Procurement akin to the Silver Surfer
It is essential to connect unto our conversations to measure RoI, social impact, and sales tools that enable you to go out individually. Catalog-based buying, digitalization of data, and procurement operations are the long-term answers, especially after the last two years of supply chain disruptions. Just like the Silver Surfer possesses speed, agility and the ability to harness limitless energy, digital procurement platforms will help UAE bring supply chain transformation to introduce deep tech investments over the next ten years.
What’s Next for the Avengers Assemble? A Window to the UAE in 2032
The UAE economy has expanded 57 times in the last five decades, rising from Dh6.5 billion to about Dh353.90 billion in 2020, on the back of burgeoning services and industries. And as the recently-released Dubai 2040 urban development master plan suggests, there will be continued investment in physical infrastructure as well, including transport, housing and leisure facilities to improve the quality of life for residents and to make Dubai a desirable place to live and work in the coming decades.
The UAE has been adopting new technology for greater digital advancement and applying it well in various sectors. And as digital integration takes the center stage, the UAE will continue to move towards and adopt collaborative ways of working in procurement and B2B commerce.
Moglix is an Asia-based B2B commerce company specializing in the e-procurement of industrial products. We provide digital procurement and supply chain solutions across industries, such as FMCG, Healthcare, Construction, Oil & Gas, Metal & Mining among others. To know how your enterprise can unlock the benefits of new-age technology-driven procurement and supply chain solutions from Moglix, visit https://business.moglix.ae/contact-us/
Have You Explored These Performance Enablers for Your Procurement Team?
Have You Explored These Performance Enablers for Your Procurement Team?
While the world is still seemingly adapting to the rapid digital advancements, post-pandemic, there has been an even greater push on digitization to take center stage in procurement teams. This change has encouraged companies to remake their supply chains and is poised to think about how digital transformation plays a vital role in how the procurement function delivers value.
According to a recent study by WBR Insights, most procurement leaders in the middle east are investing less than 50% of their budgets in future technologies like artificial intelligence (AI), machine learning (ML), robotic process automation (RPA), cognitive procurement tools and more.
Strategic sourcing is becoming more predictive, transactional procurement is becoming more automated, and supplier relationship management is becoming more proactive.
A report by Gartner stated that more than 70% of sourcing and procurement professionals report using suppliers to tap into new-in-kind technology services and something outside their organization’s core business model.
Procurement is all set to become seamless and frictionless like never before, especially in the UAE. The recent announcement of the ‘Centennial 2071 project’ plans to make UAE the best country in the next 50 years and hopes to enable future generations to live a happier life with a better overall environment, more significant growth opportunities, and stronger communication links with the world. The Centennial 2071 project will focus on four core aspects: Economy, Education, Government Development, and Community Cohesion.
As the competition rises with new players entering the supply chain race, Middle Eastern businesses have a more significant advantage over existing businesses. With the help of futuristic strategies investing in new supply chain concepts and virtual or digital enablers can place them at the helm of digital innovation within a shorter turnaround time and a significant possibility of growth.
Let’s Look at Some Enablers Accelerating Procurement Performance in the UAE:
e-Procurement
e-Procurement or purchase-to-pay technology is used to make the order-delivery supply chain frictionless, contactless, and paperless. It has always existed within the market as a value-add to an on-premise enterprise resource planning (ERP) system.
e-Procurement has grown its utilities a lot more exponentially today to help procurement processes. It integrates and automates the entire back-office lifecycle of requisitioning, purchasing, receiving, paying, and accounting for indirect goods and services.
In the future, e-Procurement will increasingly leverage artificial intelligence, natural language processing, and robotic procurement automation to leverage technology into customizing the buying experience while cutting costs, increasing efficiency, reducing risk, and improving governance and insight on the internal operations. e-Procurement solutions in the UAE will be more open, network-oriented, autonomous, collaborative, and intelligent.
Catalog Based Buying
Procurement catalogs provide information about the items and services that company employees can order for internal use. While this is a very advanced way to strategically manage the overall inflow of spending, on the user end, it also gives the customer a broader and much more appealing range of products to pick.
In the future, intelligent cloud-based procurement platforms will lead to a more vertically integrated analysis, better support for CPOs, and efficient sourcing strategies. This digital transformation will elevate the procurement technologies providing business owners access to previously unavailable metrics.
Artificial Intelligence
A 2019 report on the ‘Government Artificial Intelligence Readiness Index’², which examined over 190 countries worldwide to determine its rankings, has also placed UAE at the top of the Arab world for its readiness to adopt Artificial Intelligence (AI) technologies.
Today UAE accounts for accelerated growth in AI and is estimated to account for 13.6% of GDP by 2030. With the announcement in October 2017, the UAE Government launched ‘UAE Strategy for Artificial Intelligence (AI)’ to boost government performance at all levels, especially the procurement business vertical. With the help of an integrated intelligent digital system, companies can now overcome challenges and provide quick, efficient solutions. Make the UAE the first in AI investments in various sectors. Another 2018 study by McKinsey projects that by 2030, 45% of existing work in the Middle East has the potential of being automated.
Machine Learning
Machine Learning has evolved from the study of computational learning theory and pattern recognition and has become a technology innovation that allows businesses to evaluate and make better decisions. It will enable the procurement businesses to predict outcomes and results based on models and algorithms.
It helps automate collecting, cleaning, classifying, and analyzing expenditure data in an organization. This is the key to identifying savings or paths to greater efficiency.
“A procurement VPA can improve the end-user experience of traditional procurement tools and increase spending under management by guiding people to the correct purchasing tool,” said Magnus Bergfors, research director at Gartner. “A CPA can provide summaries, recommendations, and advice in everything from supplier assessments and performance management, to risk management and compliance.”
Digital Track and Trace of Logistics
In the supply chain industry, track and trace identify the past and present locations of all product inventory and its entire product history. This technology enables a product’s (current) status to be captured through the value chain and to identify and verify its path retrospectively. Digital track and trace help businesses manage all operations and oversee execution at all levels; this means more proximity and less assumption of executed results leaves some to no margin of error.
The Future of Procurement
As digital supply chain transformation takes the lead in the UAE, businesses need to strategically re-evaluate to harness new technologies to become more agile and resilient. Sourcing and procurement are crucial for supply chain acceleration, increasing business value. Given the changing world, sourcing and procurement play an integral role in unlocking new value from the supply base and protecting the organization from future disruption.
Moglix is an Asia-based B2B commerce company specializing in the e-procurement of industrial products. We provide digital procurement and supply chain solutions across industries, such as FMCG, Healthcare, Construction, Oil & Gas, Metal & Mining among others. To know how your enterprise can unlock the benefits of new-age technology-driven procurement and supply chain solutions from Moglix, visit https://business.moglix.ae/contact-us/
Will Santa Claus Deliver on the Supply Chain Promise this Christmas?
Will Santa Claus Deliver on the Supply Chain Promise this Christmas?
With the Christmas season around the corner, the festive spirit is very much palpable in the UAE. However, the second Christmas through the COVID19 pandemic throws some questions for the global supply chain. Are we bracing up for a shortage of Christmas trees in the UAE this year?
Inventory Shortages Through the Build Up to Christmas
Online buyers saw over 2 billion out-of-stock warnings in October 2021 alone. This number is a good indicator of the demand-supply imbalance and a cause of concern for goods manufacturers, OEMs, and distributors. Consumption peaks around the holiday season represent a vital growth opportunity, especially after insipid demand through the COVID19 pandemic.
Here are some goodies that the global supply chain industry would definitely add to their Santa wish-list to ensure better preparedness in the future.
Demand versus Supply – Manage the Suppliers First
The product journey begins with sourcing raw material at the start of the production cycle. Supply chain complexity increases with the number of vendors. A transparent, seamless, and integrated vendor management system will help manufacturers tide over seasonal peaks and plan better. Just like Santa would plan meticulously to meet the expectations of young children globally, a robust and automated vendor management system improves the chances of meeting demand without hiccups.
A More Visible Supply Chain will be The Perfect Gift from Santa Claus
Supply chain visibility is critical to spotting potential bottle-necks, tracking workflows, and making data-backed decisions. An essential step to greater visibility is digitizing the procurement process and vendor consolidation. The resulting elimination of manual processes allows producers to plan more efficiently and solve supply chain challenges easily.
Data Analytics and Predictability to the Rescue
Knowing the extent of product demand is the key to shipping the right quantity. This means knowing historical sales data, awareness of supplier capabilities, and building a backup for these products with a suitable replacement – just in case things get out of hand. A transparent and seamless digital solution or ERP that provides this visibility is essential and can be a game-changer in managing expectations, winning a sale, and growing faster.
Making Christmas Arrive Early Each Year
Understanding the various challenges caused by a seasonal surge in demand will help manufacturers and OEMs re-imagine and strengthen supply chain resilience for the future. A partner that provides organizations greater predictability, visibility, cost efficiency, and agility at scale to their supply chain and procurement practice can help reduce the strain on logistics and procurement throughout the year.
To know more about how Moglix can help you with your Supply Chain issues and overcome the stress of supplying to the holiday season, visit business.moglix.ae for more information.
نحن على أتم الاستعداد لنقودك نحو مستقبل التجارة بين الشركات وسلسلة التوريد.
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