Digital & Agile Supply Chain in the Era of Disruption

Alberto Proverbio
Supply Chain Expert
DIGITAL & AGILE SUPPLY CHAIN
IN THE ERA OF DISRUPTION
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Rapidly Shifting Market
Dynamics
Static Planning Processes
Poor Supply Chain
Visibility
Bottlenecks
, increased costs, unplanned
events and risks,
growing 
D
emand
 
V
olatility,
People challenges
Out of touch with reality,
based on
 
no updated data
70%
 of companies don’t know
their n-level supplier network
(survey by Resilinc)
Managing
 
Global Supply Chains 
has become increasingly difficult, with numerous challenges impacting how
organizations ensure 
product availability, service levels
, 
quality, sustainability 
and
 total cost 
optimization.
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Extended Visibility
Digital Supply Chain Twin
It’s a digital representation of the
physical supply chain (critical part) that can
be used to create plans and make decisions
Adaptable to
Changes
Speed and flexibility to react to
sudden demand and supply changes.
Anticipate risks
Digital
Collaboration
Engages every level of the supply
chain to ensure open flow and
exchange of information
With the goal of enabling 
strategic business growth
, companies must implement 
new supply chain models
 focused on
collaboration, extended visibility, adaptability, sustainability 
and
 enabled by Digital Tech
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Multi-channel
Collaboration
 with
Business Partners
Real
 time/Network
Visibility
Proactive
 Risk
management
Closed loop between
Planning & Execution
End to End Control
Tower
Look Forward
Forecasting
Machine
 learning/AI
Real time Location
system
Augmented
 Reality
Big
 Data
Key
Points
IOT
Tech
Near shoring/
Friendshoring
Cloud
Collaboration degree
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Supply Chain Collaboration
 involves exchanging supply chain 
data
 between 
business 
partners through 
multiple
di
gital channels 
(i.e. cloud based collab. platform) 
and 
covers different time frames
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Where Suppliers (N level) are located and where they produce
and where procure material
M
ain logistics routes from Suppliers and to Customers
Real Lead times and other parameters
Supplier and Customers potential risks
….
EXTENDED SUPPLY
CHAIN VISIBILITY
NETWORK VISIBILITY
DYNAMIC REAL TIME
VISIBILITY
Where are the Products
Inventory levels at Customers and Suppliers
D
isruptions are affecting my logistics network
How plants are running
….
Collaboration
 with Business Partners and 
integration with the field 
(IOT) enables 
extended Supply Chain
Visibility  (Digital Supply Chain Twin)
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E2E 
CONTROL TOWER
HORIZONTAL
IMPACT  ANALYSIS
SIMULATION
DASHBOARD
PRESCRIPTIONS
RISK DETECTION
& ANALYSIS
Digital Collaboration enables a new paradigm, closing the loop between Planning and Execution, short and medium
time horizons, ensuring maximum speed to react to unplanned events and demand volatility
SUPPLY CHAIN
EXECUTION
SUPPLY CHAIN
PLANNING
MEDIUM
LONG
SHORT
REAL
TIME
-
CLOSED LOOP
PLANNING & EXECUTION
 
(short and medium horizon)
TACTICAL
COLLABORATION
EXTENDED REAL TIME
VISIBILITY &
FIELD CONNECTION
RAPID
REPLANNING
INTEGRATED SUPPLY
CHAIN & PREDICTIVE
PLANNING
DYNAMIC SALES &
OPERATIONS PLANNING
REAL-TIME RISKS &
ISSUES DETECTION/
PROACTIVE ALERTING
MULTI-CHANNEL
COLLABORATION WITH
BUSINESS PARTNERS
RAPID
REPLANNING
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3. Alerts & Incidents
Management
2. Dashboard, KPI & Root
cause analysis
5. Horizontal Impact
Analysis, Scenario
Simulation, Prescriptions
4. Supply Chain Risk
Detection & Management
6. Sustainability reporting (Scope 1, 2, 3)
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SC Network map
B
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C
K
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A supply chain 
Control 
T
ower 
is a framework
combining people, process, data and organization,
facilitated by appropriately
 
combined technology
elements. 
Typically by 
functional domain.
It establishes a 
C
entral Hub 
to capture and use 
data
,
structured and unstructured
, 
internal and external
, 
to
provide enhanced visibility and more and more
predictions and suggestions for short-term and mid-
term 
decision making
 
Evolution to an 
End to End (Horizontal) Control Tower
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A 
structured supply chain risk management process with a clear
Governance
Map logistics 
and 
manufacturing network
Collaborate with suppliers 
and business partner to extend visibility on N-
level network
Assess and gather risks
 at country, geographic area, logistics node,
supplier, leveraging internal and external sources of information
Classify risks
 based on probability, impact and 
TTR 
= time to recover
Monitor and detect risk 
in real time
, 
with
 
early warning-alert
Mitigation 
actions
 
(proactive, reactive)
W
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h
a
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Supply Chain Performance &
 Resilience Assessment
is a stress test method already applied to several
companies to evaluate performances  (vs best
practices) and identify weakness and opportunities
https://www.industry4business.it/industria-4-0/come-effettuare-uno-
stress-test-per-supply-chain-agili-e-resilienti/
Average performance = 3  
(from 1 to 6)
 
 
Poor Visibility
Limited info about delays/ETA
Collaboration with traditional methods
Demand forecasting issues (looking at the past)
Fragmentation of Responsabilities of Supply Chain / Silo
approach
Shortage of skills (cross-functional, new tech)
 
Slow to react
 
Important s
pace for Improvement,
enabling
 
G
rowth
+ product availability
+ service level
+ customer satisfaction
-  CO2 emissions
-  cost of disruption
- 
 low value added tasks
W
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Managing global supply chains has become increasingly difficult in the age of disruption. This article explores the challenges organizations face and presents agile and resilient supply chain models enabled by digital technology.


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  1. DIGITAL & AGILE SUPPLY CHAIN IN THE ERA OF DISRUPTION Alberto Proverbio Supply Chain Expert

  2. THE AGE OF DISRUPTION: growing Complexity and Demand Volatility Managing Global Supply Chains has become increasingly difficult, with numerous challenges impacting how organizations ensure product availability, service levels, quality, sustainability and total cost optimization. Static Planning Processes Rapidly Shifting Market Dynamics Poor Supply Chain Visibility Out of touch with reality, based on no updated data Bottlenecks, increased costs, unplanned events and risks, growing Demand Volatility, People challenges 70% of companies don t know their n-level supplier network (survey by Resilinc)

  3. THE ANSWER AGILE AND RESILIENT SUPPLY CHAIN With the goal of enabling strategic business growth, companies must implement new supply chain models focused on collaboration, extended visibility, adaptability, sustainability and enabled by Digital Tech Extended Visibility Digital Supply Chain Twin Adaptable to Changes Digital Collaboration It s a digital representation of the physical supply chain (critical part) that can be used to create plans and make decisions Engages every level of the supply chain to ensure open flow and exchange of information Speed and flexibility to react to sudden demand and supply changes. Anticipate risks

  4. THE ANSWER AGILE AND RESILIENT SUPPLY CHAIN Closed loop between Planning & Execution Multi-channel Collaboration with Business Partners Real time/Network Visibility Key Points Look Forward Forecasting End to End Control Tower Proactive Risk management Near shoring/ Friendshoring Augmented Reality Cloud Real time Location system Big Data IOT Tech Machine learning/AI

  5. SUPPLY CHAIN COLLABORATION Supply Chain Collaboration involves exchanging supply chain data between business partners through multiple digital channels (i.e. cloud based collab. platform) and covers different time frames Business Partners Strategic Collaborative Planning Long term Distributors/Customers Common metrics Collaborative Product development Suppliers Collaborative Sustainability Tactical external Manufacturers Collaborative Capacity mgmt Collaboration degree Collaborative Forecasting (shared) Shared KPI/ SLA Logistics providers Collaborative Replenishment/VMI Collaborative Transportation Planning Data providers Inventory Visibility Transactional Order mgmt Sell-out Call-off Logistics events/risks ASN Master Data Alignment Invoice mgmt Time

  6. SUPPLY CHAIN VISIBILITY Network and Dynamic Collaboration with Business Partners and integration with the field (IOT) enables extended Supply Chain Visibility (Digital Supply Chain Twin) Where Suppliers (N level) are located and where they produce and where procure material NETWORK VISIBILITY Main logistics routes from Suppliers and to Customers Real Lead times and other parameters Supplier and Customers potential risks . EXTENDED SUPPLY CHAIN VISIBILITY Where are the Products DYNAMIC REAL TIME VISIBILITY Inventory levels at Customers and Suppliers Disruptions are affecting my logistics network How plants are running .

  7. CLOSED LOOP BETWEEN PLANNING AND EXECUTION Digital Collaboration enables a new paradigm, closing the loop between Planning and Execution, short and medium time horizons, ensuring maximum speed to react to unplanned events and demand volatility SUPPLY CHAIN PLANNING INTEGRATED SUPPLY CHAIN & PREDICTIVE PLANNING SUPPLY CHAIN PLANNING E2E CONTROL TOWER LONG SUPPLY CHAIN PLANNING DASHBOARD HORIZONTAL IMPACT ANALYSIS CLOSED LOOP PLANNING & EXECUTION (short and medium horizon) MEDIUM RISK DETECTION & ANALYSIS SHORT SIMULATION SUPPLY CHAIN EXECUTION - PRESCRIPTIONS SUPPLY CHAIN EXECUTION REAL TIME SUPPLY CHAIN EXECUTION

  8. END TO END CONTROL TOWER A supply chain Control Tower is a framework combining people, process, data and organization, facilitated by appropriately combined technology elements. Typically by functional domain. It establishes a Central Hub to capture and use data, structured and unstructured, internal and external, to provide enhanced visibility and more and more predictions and suggestions for short-term and mid- term decision making 6. Sustainability reporting (Scope 1, 2, 3) 5. Horizontal Impact Analysis, Scenario Simulation, Prescriptions 4. Supply Chain Risk Detection & Management BUILDING BLOCKS 2. Dashboard, KPI & Root cause analysis 3. Alerts & Incidents Management 1. SC Network map 0. Data gathering & storing Evolution to an End to End (Horizontal) Control Tower ERP/MES External sources (for country risks, weather risks, supplier risks, ) Execution Collaboration with Business Partners IOT events

  9. SUPPLY CHAIN RISK MANAGEMENT A structured supply chain risk management process with a clear Governance Map logistics and manufacturing network Collaborate with suppliers and business partner to extend visibility on N- level network Assess and gather risks at country, geographic area, logistics node, supplier, leveraging internal and external sources of information Classify risks based on probability, impact and TTR = time to recover Monitor and detect risk in real time, with early warning-alert Mitigation actions (proactive, reactive)

  10. WHERE WE ARE? A stress test for Supply Chain Resilienza bassa 1 Resilienza media Resilienza alta Supply Chain Performance & Resilience Assessment is a stress test method already applied to several companies to evaluate performances (vs best practices) and identify weakness and opportunities Azienda 2 3 4 5 6 VISIBILITA VISIBILITA SUPPLY CHAIN ESTESA CATENA FORNITURA (tempi, mercati) FORNITURA LOGICHE SOURCING (Mono vs Multi) SUPPLIER COLLABORATION LIVELLO DI RESILIENZA SUPPLY CHAIN RISCHI: VALUTAZIONE, PIANI, RISK MGR 6 SUPPLY CHAIN RISK MANAGEMENT RISCHI: MONITORAGGIO INCIDENT SUPPLY CHAIN AGILE DOMANDA: CLIENTI, MERCATI, CANALI SUPPLY CHAIN REATTIVA Livello di resilienza SALES, PROFIT & OPERATION PLANNING DEMAND PLAN DOMANDA e PLANNING Processo strutturato e governance Risk Mgmt Supply Chain Control Tower estesa e Analitiche avanzate Simulazione scenari Pianificazione dinamica Catena fornitura corta, agile Footprint produttivo trade off rischi-costi SUPPLY CHAIN STATICA 3,2 CUSTOMER COLLABORATION CUSTOMER SERVICE 1 NETWORK PRODUTTIVO-LOGISTICO Reazione rapida ad eventi rischio e Business continuity plan Visibilit e conoscenza catena fornitura estesa Pianificazione integrata Supply Chain e analitiche STRUTTURA PRODUTTIVO- LOGISTICA FLESSIBILITA EFFICACIA PRODUTTIVO-LOGISTICA No Supply Chain Risk Mgmt strutturato Catena fornitura lunga e con limitata visibilit SUPPLY CHAIN CONTROL TOWER DASHBOARD GOVERNANCE ORGANIZZAZIONE SUPPLY CHAIN Base Livello di maturit Evoluto https://www.industry4business.it/industria-4-0/come-effettuare-uno- stress-test-per-supply-chain-agili-e-resilienti/

  11. WHERE WE ARE? Results of stress test Average performance = 3 (from 1 to 6) Important space for Improvement, enabling Growth Poor Visibility Limited info about delays/ETA Collaboration with traditional methods Demand forecasting issues (looking at the past) Fragmentation of Responsabilities of Supply Chain / Silo approach Shortage of skills (cross-functional, new tech) + product availability + service level + customer satisfaction - CO2 emissions - cost of disruption - low value added tasks Slow to react

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