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Supply Chain Management to Increase Value

Supply chain management through technology adoption has become a prerequisite for maintaining and increasing value. The value chain lack transparency, manageability, and coordination that only new technologies can provide: cloud technologies, IoT, Blockchain, Big Data, and AI.
Collaborate & Transform: Supply Chain Management to Increase Value
Flexible businesses respond to dynamic demand
Flexible businesses respond to dynamic demand
Digitized supply chains are balanced IT systems
Digitized supply chains are balanced IT systems
A comprehensive approach improves value chain
A comprehensive approach improves value chain
The requirements for retailers and supply chains are becoming more rigorous: express delivery, clear traceability, non-stop service. Now, when supply chains are complex, multi-stage, and international, companies have to make their supply chains as secure and flexible as possible, harnessing the full power of technology.

Variety of suppliers and logistics options, complex processes, limited product life cycles, volatility, and crises increase the global market uncertainty. Globalization and interaction with the world giants force small and medium players to look for the most beneficial practices, change, and adapt. Companies need to drive value growth in the face of uncertainty and turbulence by creating new, flexible strategies based on technology and partnership.

Synergy and Integrity of Supply Chains

Effective supply chain management requires a shift from competitive and contradictive thinking to comprehend value chains in terms of interdependence and cooperation. Each company in the chain is both a customer of one and a supplier of another enterprise. Any entrepreneur aims to increase the values of his organization. However, the leader must understand that only the achievement of the cumulative benefit of all participants in the supply chain will enable him to reach this goal.

Thus, the essence of effective supply chain management is to monitor and control the movement of all types of flows of goods, data, finance, services, etc. in all stages. Isolation, self-sufficiency, and hiding commercial data do not give a head start anymore. Sharing data in the common interest can bring value to all participants in the supply chain. The strength of the chain is in a synergy that is only possible when building ecosystems. Joint delivery significantly reduces logistics costs and risks. The benefits of order integration are multifaceted: improving the accuracy of forecasts, decreasing stocks, a more accurate estimate of the expected delivery time, reducing administrative work, better user experience, etc.

Increased Requirements: Flexibility, Transparency, and Sharing Data

When the view of supply chains ceases to be disjointed, the traditional approach to the supply chain with a focus on standardization of production and low cost is a thing of the past. For a company to compete successfully, its supply chains must respond to change as quickly as possible. Flexible business models allow businesses to respond faster to dynamic demand.

The flexibility of supply chains requires dynamic order-generating and use to plan and monitor the processes with Demand Driven MRP and day-to-day analysis and continuous data collection. Effective logistics requires visibility, transparency, and seamless cross-platform interaction. Convergence requires flexible storage strategies, intelligent route planning systems, easy real-time control, and the ideal digital interconnectedness of all supply chain participants.
Flexible businesses respond to dynamic demand
Flexible businesses respond to dynamic demand
Digitized supply chains are balanced IT systems
Digitized supply chains are balanced IT systems
A comprehensive approach improves value chain
A comprehensive approach improves value chain
Technologies-to-go: Advanced Data and Process Management

The goal of digitizing the supply chain is to create balanced, flexible, and sustainable digital systems. A comprehensive approach and validation of the entire IT architecture are required to implement technology correctly and increase value. Now, city administrations, government agencies, banks, shipping lines, freight forwarders share, and others use digital platforms to manage operations and provide services and data to customers in real-time. Platforms such as FCE contain combinations of technological aspects for value chains: cloud computing, Big Data, IoT, AI, Blockchain, etc.

Cloud technologies create the infrastructure to scale change. Cloud computing can track massive amounts of data and immediately resolve difficulties at all stages of the supply chain in real-time, update order data, track traffic flows, regulate warehouse capacity. Flexibility, scalability, and a wide range of cloud types (SaaS, IaaS, PaaS) eliminate the necessity to maintain physical IT infrastructure for the supply chain management.

5G technology realizes the potential of Big Data. It reduces the proportion of intuitive decisions in favor of fact-based solutions. The focus will shift from analyzing past results to monitoring microtrends in dynamics and timely responses to changes in consumer preferences.

IoT increases the transparency of the supply chain and minimizes manual management. IoT allows organizations to control stocks, automate their reordering, and track shipments in real-time.

Artificial intelligence (AI) and machine learning to process big data will simplify and automate processes.

The implementation of blockchain technologies will provide the required level of traceability throughout the supply chain. Trust and transparency for end-to-end supply chains are becoming increasingly valuable. The participation of a large number of equal parties in complex logistics requires accountability and honesty without centralized control. It is only possible with a distributed ledger architecture or blockchain.

Supply chain managers lack transparency in complex supply chains, ensuring smooth operations between all internal players. Blockchain also gives more control over significant suppliers, ensuring timely delivery in the right quantities to minimize the risk of failure.

The changes are of strategic value to the company. Often the most effective models have the highest resistance. When the processes are already successful, any intrusion into well-established processes seems to be wrong. Optimal solutions need to correspond to security requirements, integration and scalability, and compatibility with partners and customers' interfaces. In this case, the transition to the new technologies and platforms will be smooth and comfortable for business and all participants in the supply chain.
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