A Supply Chain Markup Language
Leong See W.
Ideations | Impact Investment | Investor Relations | Executive Consulting | Advisory
I assume that almost every supply chain professional uses some kind of Enterprise Resource Planning (ERP) software in their daily activities. With access control, change tracking, backup mechanisms and user interfaces that may not be perfect, but at least usable, companies can manage their data assets in an efficient and cost-effective way.
However, if we analyse the time that supply chain experts spend on it every day, we notice that instead of sharing essential information, they waste their precious time in endless meetings and create never-ending email trails that would bring every artificial intelligence system to its knees.
The question is: What is the essential information that needs to be shared between the marketing, sales, supply planning, procurement and logistics departments in a company and transmitted to suppliers and manufacturers?
The most common set of data comprises quantities, batch sizes, delivery modalities, delivery dates and of course references to specifications, quality management and acceptance procedures. So how can we share this small data set in a systematic and structured way? The most obvious choice is a markup language that could be based on XML and can easily be processed automatically.
What is the benefit of a supply chain markup language? Digital information formatted in the defined language can be stored in access-controlled secure databases, can easily be integrated into the company's existing work flow management or used in document management systems. Adding digital signatures render the information contractually binding. And there is always the option of integrating the structured information into immutable digital ledgers.
Every modern ERP system can read XML languages and integrate the provided information seamlessly and structured information. But also every decent web browser is capable of displaying XML-based languages in a humanly readable form, enabling even those suppliers who still use blackboards and chalk for their production planning to participate in an efficient exchange of information.