Interconnected Systems: Understanding the Power of Evolving Technology in Interconnected Supply Chains

The role of technology in supply chains has undergone a massive disruption. Moving beyond automation and digitization, it now provides end-to-end visibility and control over operations, giving businesses a competitive edge.?

Broadly, we begin by identifying key touchpoints in a simplified supply chain. It includes interactions between suppliers, manufacturing plants, distribution centers, and customers. A tech-powered supply chain connects these touchpoints, enabling stakeholders to make informed strategic decisions.?

These touchpoints or collaboration partners span the entire supply chain, from Tier 1 to Tier n suppliers, OEMs, distribution/dealers, logistics players, and customers. Let’s take a closer look at these touchpoints and explore how technology’s role has evolved at each stage over time:?

Supplier Collaboration?

Transparency and collaboration are the key pillars of an effective supplier relationship. While traditionally, technology has helped suppliers in communicating long-term as well as near-term release schedules, the latest advancements allow the complete elimination of email/paper-based communication.?

?Collaborative initiatives, backed by technology, offer features like:?

• Real-time access to buyer purchase orders and delivery schedules?

• Options for raising system-based change requests from suppliers?

• Features to acknowledge the change request and act on it?

• A view of supplier capacities and invoices?

• Advanced shipment notifications?

Transportation Management System (TMS)?

Third-party logistics (3PL) partners are integrated via TMS, which communicates logistics requirements and planning needs. This platform has multiple features for shared responsibility, like freight planning, single source for all transportation-related communication, end-to-end integrated tracking and freight bill audit. The platform provides direct benefits via route, freight and cost optimization algorithms.?

?Cross-functional Collaboration?

Cross-functional teams are recommended to utilize common platforms to forge a connected Supply Chain. Planners use advanced planning solutions for comprehensive supply planning. The versatility of this tool also enables simulation, holistic planning, scheduling and optimization based on in-built planning algorithms.??

?Two of the major operations facilitated by this tool are as follows:?

• Exception Management -??

An ‘exception’ is used to highlight critical issues across the Supply Chain. Earlier planners had to spend hours to trace an exception. However, now, they not only get automated alerts for exceptions, but the workflow-based model also allows to route the exception to the collaborators, promoting a shared responsibility.?

• Rough Cut Capacity Planning (RCCP) -??

Here, the supplier continuity team takes actions based on the supplier risk levels as showcased by the RCCP tool. Additionally, data from this platform is used for inventory analytics and management.?

Application of Industrial Internet of Things (IIoT)??

Manufacturing plants are now being connected to resemble smart factories. Technologies like Industrial Internet of Things (IIoT) to connect all the critical machines and monitor them for Overall Equipment Effectiveness (OEE) and machine health via Condition Based Monitoring (CBM) are being implemented. The IIoT applications provide insights into the machine’s performance along with its availability, productivity and quality.??

Smart factories offer collaboration opportunities to connect multiple teams. The analytics and insights gathered can be consumed by teams for various purposes as follows:?

• Manufacturing Engineering team: to check on the machining, assembly and verification.?

• Operational Excellence team: to assess the plant's operations through the provided data.??

• Maintenance team: to take actions for predictive maintenance of machines?

• Facilities team: to monitor energy/utility?

• Plant Leadership team: to gain a holistic view, including sustainability goals.?

• Quality team: to enable product traceability for improving the auditability of manufactured goods.?

Customer Collaboration?

Sales order fulfillment is the heart of every business. On-time delivery can be achieved with accurate forecasting and a well-aligned order fulfillment strategy. To enhance customer satisfaction and optimize demand planning, supervised machine learning algorithms like Extreme Gradient Boosted Regression Trees, can be deployed to improve forecast accuracy.?

In addition to the Sales team, the Customer Order Management team has multiple touchpoints in the order-to-cash process. This team interacts for inventory management, supply chain management, order manufacturing/processing, quality control and customer service. While the ERP systems cater to most of the functional requirements, TMS provides real-time shipment tracking and trace information, right up to Proof of Delivery through 3PL integration.?

Supply chain complexities are ever evolving, and so are technological advancements. While core transactional systems like ERPs handle the fundamental functions, advanced technologies like analytics, predictive algorithms and sophisticated collaborative platforms provide endless possibilities to bring in the transparency needed for an integrated supply chain. Interconnected teams can comprehend mutual challenges, plan ahead of time, and solve issues collaboratively. After all, this is the essence of a connected supply chain.????

Author Bio:??

Gargi Singh is the Technology Delivery Leader, responsible for overseeing Oracle Delivery, Applications and Data Services, and Salesforce/CRM deliveries across all business segments at Cummins India. Her extensive experience in technology management and delivery enables her to drive innovation and operational excellence across Cummins' diverse business units.?