Integrating Technology for Improving Supply Chain

In this webinar, we understand the usage of technology in the supply chain, how it can improve business processes and revenues.

“It’s not the businesses that compete with each other, it’s the supply chain that competes with each other.”

Nexdigm

What does the Supply Chain function include?

From the start of the supply chain, the entire lifecycle of the supply chain is dependent on 4 verticals.:

• Procurement Sourcing
• Manufacturing and Contract management
• Distribution and Network
• Logistics and Transportation (Delivery & Return)

The nature of decisions for the above verticals as per impact duration could be strategic (5-10 years), tactical (2-5 years), and operational (day-to-day activities).

Why use technology in the supply chain?

From the start of the supply chain, the entire lifecycle of the supply chain is dependent on 4 verticals.:

• Procurement Sourcing
• Manufacturing and Contract management
• Distribution and Network
• Logistics and Transportation (Delivery & Return)

The nature of decisions for the above verticals as per impact duration could be strategic (5-10 years), tactical (2-5 years), and operational (day-to-day activities).

Why use technology in the supply chain?

Pandemic has accelerated technology adoption that has led to 3 main benefits:

• Increased efficiency that impacts collaboration and decision making
• Cost savings via remote controlling processes that reduces human errors, breakdowns, etc
• Better customer servicing via order and inventory management, usage of chatbots for frontend satisfaction

Examples

• Antwerp Port uses smart cameras to detect oil spills, drones for monitoring, remote-controlled barges, using 5G, etc on top of their physical port
• CMA CGM increased visibility on the supply chain by using smart containers for ocean transports that provide data on shocks, heat variation, etc

How does Automation support the supply chain?

“It is very important to make sure it is a sustainable & scalable solution in every country because every country is different. If you have a very specified solution given to you, that will always be better in terms of the execution and results compared to having a common kind of software and start using it”

- Sandeep Sharma, Leads the supply chain | Domino’s Pizza at Alamar Food Company in the MENA region

Specialized software and tools can automate all traditional aspects of the supply chain as follows:

• Planning: specialized enterprise resource planning software can help in decision making
• Sourcing: online bid evaluation, bid placing, and contract lifecycle software help businesses get the best deals
• Building: Production monitoring tools and automated machines can optimize manufacturing processes
• Delivering: inventory management software and robotics can reduce human errors
• Return: QR codes, refund tracking systems, and blockchain for end-to-end tracking can help track returns easily without the chaos

How can analytics support Supply Chain?

“Automation is cost-cutting the corners by tightening them not by cutting them”

6 steps for supporting supply chain with analytics:

Hindsight analysis:

1. Aggregate relevant data

2. Generate reports measured via KPIs and stakeholder needs

Insight analysis:

3. Use Dashboards for real-time feedback

4. Analyze the data for informed decision making

Foresight analysis:

5. Improve the quality of decisions by identifying threats using predictive analytics

6. Optimize for continued process improvement

How has the Pandemic affected the supply chain?

“ The customers’ requirements have not changed, it’s the need of the supply chain to speed up and adapt to the changing requirements that have to be improved”

MP Anand, Head of Customer Care | CMA CGM Group

• Demand: increased the number of orders on online stores and global shipping has put stress on the supply chain
• Capacity: resources to fulfill demand is not adequate
• Quality: though companies are generating huge profits, uneven demand and uncertainty can lead to a reduction in quality
• Transactions: customers are forced to transact online, no paper submissions have led to accelerated adoption of digital solutions

Mitigation measures:

• Using automation to decrease human intervention through technology like mobile applications etc.
• Agile demand and supply optimization can help reduce the gaps in schedules and finding new routes
• Understand the situation of all vendors involved to optimize quality
• Data sharing needs to be focused on maintaining transparency among stakeholders so that they can optimize any issues on time
• Using AI for demand forecasting and optimize resources beforehand
• Focus on real-time inventory management