22 May 2024

5 factors which slow down procurement processes according to IUNGO

Interruptions in supply chains caused by the Red Sea crisis cost Italy € 95 million per day. With the aim of helping companies to diversify supply sources and to optimize stock, the IUNGO supply chain collaboration in cloud platform analysed 5 factors which slow down communications between companies and suppliers.


With the Red Sea crisis, Italy loses € 95 million per day (1): these are the figures estimated by Confartigianato (Federation of Italian Artisans and Craftsmen), which calculated the impact of the reduction in merchant ship traffic between the Indian Ocean and the Red Sea on Italian trade.

Supply chains, already damaged by the Covid-19 pandemic and wars, are in bad shape: they suffer breaks, blockages, closures and restrictions. What are the worst consequences?  Amongst all of them, delayed deliveries, price increases and raw material shortages.

These elements, which combine to worsen an already fragile context of uncertainty, affect companies of all sizes, from small businesses to major manufacturers. They create real breaks in communications between customers and suppliers.” – says Andrea Tinti, CEO and Founder of IUNGO. 

To operate against this backdrop, which also sees volatility in demand, companies have to equip themselves with solutions for improving communications between customers and suppliers, the ultimate goal being to diversify supply sources and optimize stock.

Setting up dedicated channels for dialogue with suppliers ensures that companies can exchange information in a prompt, transparent way capable of preventing problems linked to looming black swan events and extraordinary events. That’s what history teaches us.” – continues Tinti.

But how do you prevent the difficulties linked to broken supply chains? This is explained by the IUNGO supply chain collaboration in cloud platform, which analysed 5 factors which slow down communications between companies and suppliers:

  • Obsolete tools and unstructured channels: the use of obsolete tools such as fax and unstructured channels like e-mail or telephone, unless integrated with cutting-edge solutions, shows communications because of inefficiencies in the transmission and management of information. In fact, these tools do not allow synchronization and immediate accessibility of data, thereby increasing the risk of errors, delays and loss of crucial information.
  • Human error: human error slows communications because it can lead to misunderstandings, wrong interpretations or the sending of incorrect information. This can cause confusion, require additional time to correct errors and damage trust between the parties involved. Plus, correcting the errors may require further resources and cause even greater delays in the flow of communications, negatively impacting productivity and overall efficiency.
  • Lack of information traceability: lack of information traceability creates difficulties retrieving details of past interactions. Without a traceability system, information may be lost or hard to find, taking additional time to reconstruct the context of previous communications. This slows the decision-making process and problem solving, since the parties involved have to dedicate more time and energy to finding and understanding relevant information.
  • Unforeseen events: unforeseen events disrupt the routine and well-established ways of interacting. For example, COVID-19 interrupted companies’ activities, forcing many organizations to adopt remote working and to change procedures for communicating with suppliers. This sudden change caused disorientation and uncertainty, slowing the flow of communications while companies attempted to adapt to the new situation and set up new channels and protocols for effective communication.
  • Absence of structured processes: the absence of structured procedures and processes robs the company of an organizational framework for managing and transmitting information in a consistent and effective way. Without shared procedures and well-defined processes, information may be transmitted in a disorganized or inconsistent way, leading to misunderstandings, delays and errors in communication with customers or suppliers. That makes it difficult for the parties involved to understand and respond to requests promptly and precisely, slowing the flow of communications and compromising trust in and the of reputation the company.

Globalization and changeable demand worsen the situation, whilst new production locations add further complications. This fragile scenario hampers precise planning, slows responses to customer requirements and causes delays and inefficiencies in the management of company information.” – explains Andrea Tinti.

But which elements, in contrast, facilitate communication between customers and suppliers? In procurement processes, some human factors are crucial: first, the promotion of a company culture based on cooperation and the certainty that every person involved has clear responsibilities and duties to perform. Plus, the adoption of cutting-edge technologies, such as AI and data analysis, improves communication efficiency and transparency. In parallel, implementing standardized processes also helps to ensure consistent, fast transmission of information. In contrast, in environmental terms, building relationships based on trust and partnerships with suppliers favours open and collaborative communication, whilst transparency and promptness in the sharing of information reduce possible failure to understand and delays.

In a context of uncertainty like the current one, a shared vision of future prospects, the definition of common goals and creation of dedicated communication channels are fundamental factors for facilitating the flow of information and establishing successful relationships between the parties involved.” – concludes Andrea Tinti.

With an intuitive dashboard, the IUNGO in cloud platform offers companies a full real-time view of the state of transactions, allowing them to manage priorities and rapidly deal with any unforeseen events. Plus, by constantly monitoring supplier performance, it helps to identify areas for improvement to optimize cooperation and strengthen business relationships.


Founded in 2001 as a spin-off of the Faculty of Engineering of the University of Modena and Reggio Emilia from an idea of Andrea Tinti, CEO & Founder born in 1972, IUNGO has designed a platform for optimizing supply chain collaboration and related business processes thanks to an innovative cloud technology adopted by MODULA, DATALOGIC, LUXOTTICA, among others. After being listed by Gartner as a Leader of a New Market Trend and included in the FT 1000 – Europe’s Fastest Growing Companies 2020 ranking, IUNGO won the Cribis Prime Company 2020 and 2021 awards. IUNGO is headquartered in Modena and Milan.



Daniela Monteverdi: – +39 349 319 2268

Micaela Longo: – +39 339 580 0192

Chiara Guerra: – + 39 351 356 6966