5 key Elements of a Composable Supply Chain

The one-size-fits-all approach to SCM has become a relic of a bygone era. Instead, forward-thinking supply chain pros should envision their network infrastructure as a versatile set of “plastic Danish building blocks” – composable. A specialized supply chain framework where each piece serves a specific purpose, contributing to the structure’s overall resilience and adaptability.?

This shift towards a composable supply chain infrastructure necessitates a decision to turn away from a more “traditional” generalist method. ?

Adopting a Specialist vs. a Generalist Supply Chain Strategy

The generalist approach

Often chosen as a path of least resistance, it typically involves using a monolithic ERP system to provide a broad base of functionality. Built to provide “all things to everyone,” the appeal of the monolithic ERP approach is “uniformity.” Perceived reliability, risk aversion, and comprehensive coverage. Optimal or not, businesses have a solution in place.

However, as businesses grow and face more complex challenges, they need to assess whether this approach aligns with their specific needs. While ERPs are valuable in terms of their “comprehensive coverage,” they may not offer the depth of insight required in modern supply chain management. This is where the “composable” specialist approach comes in.

By incorporating specialized, best-in-class solutions into their existing ERP framework, tailoring to the specific needs of their supply chain with greater precision and efficiency

The specialist approach

A generalist/monolith approach cannot accommodate the level of agility needed to address the uncertainty and volatility of today. This does not necessitate the need to rip and replace your ERP system starting over from square one. This means developing a solution landscape?that leverages your existing data and fosters a culture of continual improvement and adaptivity. ?

Five key elements of a Composable Supply Chain

Taking a specialist approach to constructing a robust supply chain

1. Embracing Composability: As highlighted in a recent episode of the GAINS On podcast, “Supply Chain Architecture,” adopting composable SCM solutions is increasingly crucial. Bill Benton, Co-Founder and a key figure in the development of GAINS, reflects on this: “GAINS is designed not to be wedded to a single technology but to leverage advancements that enhance solutions for specific supply chain problems. This allows businesses to avoid the pitfall of a ‘solution chasing problem’ but instead focus on beginning with the problem and seeking the most effective solution. Targeted solutions with an ERP backbone lead to a more dynamic, responsive, and efficient supply chain.”
2. Integrate Best-of-Breed Solutions: You may find that using SAP, Oracle, or Microsoft Dynamics ERP works well for many tasks. However, a composable supply chain thrives on integrating best-of-breed solutions. While traditional ERP systems offer broad functionality, integrating best-of-breed solutions into a composable supply chain framework gives businesses the agility, precision, and efficiency needed to thrive in today's environment. Instead of relying on a monolithic ERP system, businesses must select and integrate specialized tools to address specific aspects of their supply chain. This allows for more precise control and optimization in critical areas, from inventory management to S&OP and demand forecasting.
3. Scalability and Flexibility: One of the most significant advantages of a composable supply chain is its flexibility. As businesses grow organically or through acquisition, their supply chain needs evolve. A Scalable solution that can easily add or replace individual components instead of overhauling the entire system.? This modularity ensures your supply chain can adapt quickly to changing market conditions, customer demands, and technological advancements, maintaining a competitive edge. In the face of such an uncertain environment, having a scalable and flexible supply chain solution is not just beneficial but essential.
4. Data-Driven Decision Making: Data integration and analytics play a pivotal role in compossibility. Advanced analytics tools provide deep insights into operations, enable informed decision-making, identify inefficiencies, and proactively uncover opportunities for optimization. With real-time data at their fingertips, supply chain professionals can respond proactively to disruptions and market shifts.
5. Enhanced Collaboration and Visibility: Composability enhances collaboration and visibility across the supply chain. Using interconnected systems allows for the seamless flow of data to stakeholders, who can use it more effectively to coordinate their efforts. This enhanced collaboration leads to better synchronization between suppliers, manufacturers, and distributors, resulting in smoother operations and faster response times. Greater visibility also means potential issues can be identified before they escalate, reducing risk and enhancing resilience.

Building the Future of Supply Chains with Composability

Once again, as Benton points out in his interview, beyond a trendy new solution, composable supply chains are a strategic necessity in today's unpredictable environment. By embracing composability, businesses can construct a supply chain that is robust, efficient, and highly adaptable to change. Integrating best-of-breed solutions allows for targeted optimization across your supply chain functions, from inventory management to demand forecasting. The flexibility and scalability of this approach enable businesses to evolve their infrastructure in line with growth and market demand without the need for a costly and disruptive overhaul.

Contact us to learn more.

Discover how you can combine GAINS' powerful capabilities with your ERP to create a seamlessly integrated, agile, and intelligent supply chain solution. Tailored to elevate your business's operational efficiency and boost your decision-making capabilities, our solutions are designed to meet the demands of today's dynamic market environment.

For more information and to explore how our innovative approach can transform your supply chain management, please reach out to us. Let's work together to build a resilient, adaptable, and efficient supply chain that drives your business forward.

Other resources you may enjoy

GAINS On Podcast Ep 9: Supply Chain Architecture

Blog: Post-Pandemic Supply Chain Management Lessons for the VUCA Era

Blog: Can We Please Stop Using “New Normal” by Jeff Metersky