Optimize supply chain operation
What is supply chain optimization?
Supply chain optimization makes use of technology and resources like blockchain, artificial intelligence (AI), and the Internet of Things (IoT) to maximize efficiency and performance in a supply network.
An organization’s supply chain is a critical business process that is crucial for a successful customer experience. A high-performing supply chain enables business efficiency and responsiveness. This is so customers get what they want, when and where they want it — in a way that is both profitable for the organization and contributes to supply chain sustainability.
There are three phases that occur within a successful supply chain optimization process:
Supply chain design
Describes network design processes like where warehouse facilities are located and how product flows between them, and strategic objectives like demand forecasting, establishing supplies, and the planning and scheduling of manufacturing operations.
Supply chain planning
Includes the creation of a strategic supply chain deployment plan, inventory planning, and the coordination of assets. This is to optimize delivery of goods, services, and information from supplier to customers — balancing supply and demand.
Supply chain execution
Focused on execution-oriented applications and systems: warehouse and inventory management, transportation management, global trade management, and other execution applications, such as real-time decision support, supply chain visibility and order management systems.
Why is supply chain optimization important?
Supply chains are complicated, but that complexity pays technological dividends, especially when blockchain is combined with AI and IoT.
A well-designed supply chain optimization process addresses the following issues:
Silos
Supply chains can’t get the insight that they need because data is siloed, and they lack end-to-end visibility — ultimately this impacts their ability to meet customer needs. A supply chain optimized through connected technology is the best solution for informational silos.
Client needs
Rising customer expectations mean that supply chains must innovate and optimize every step of the way to meet those needs. Streamlining the supply chain is a priority for organizations that want to continue to meet and exceed customer expectations.
Competitive advantage
Supply chains of the past focused on network design — warehouse placement and the distribution fleet. Today optimization is key to building competitive advantage and protecting the brand, with a focus on execution-oriented applications and real-time decision support.
Agility
How fast can your supply chain respond to change, whether customer demands, competition or supply disruptions? Modern supply chains must be agile to remain competitive.
Sustainability
Supply chains have enormous environmental and social impacts. Today’s customer wants to know whether your goods are produced in a sustainable and ethical way, by using renewable or low-impact extraction methods.
Key features of effective supply chain optimization
Blockchain is a powerful technology, and when used along with AI and IoT, its power is dynamically enhanced. The relationship begins with blockchain, which migrates from a traditional business network and brings together data of good quality across partners. Next add AI, which takes blockchain data, derives a meaningful context from it and generates powerful insights concerning potential benefits. Meanwhile, IoT acts as the interface or sensor, working at the edges to convert the physical into the virtual.
Key features of effective supply chain optimization include:
Visibility
Get up-to-the-minute inventory tracking and available-to-promise data.
Intelligence
Leverage composable data and AI services for real-time intelligence.
Order management
Customize pricing, send quotes, track orders and manage returns.
Reporting and analytics
Evaluate patterns in processes to forecast future demand and sales.
Inventory tracking
Know exactly where inventory is across the supply chain.