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Platform for Collaborative Real-Time Supply Chains

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New technologies are transforming supply chain operations, but technology alone is not enough. Real-time collaboration between people and companies is needed to respond effectively as situations change. Simulation and collaboration platforms let people explore options, create consensus and act effectively in high change and unpredictable supply chains.

Veröffentlicht in: Business
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Platform for Collaborative Real-Time Supply Chains

  1. 1. © 2018 Michael Hugos 1 SCiWeek 2018 - Hamburg A Platform and Process for Collaborative, Real-Time Supply Chains Michael Hugos Author Keynote
  2. 2. © 2018 Michael Hugos 2 SCiWeek 2018 - Hamburg New Technologies Change How Work is Done Mix and match these technologies to: Industrial Robots Warehouse Automation Artificial Intelligence Delivery Drones 3D Printing Internet of Things Simulation Optimization • Improve operations (EFFICIENCY) • Deliver new products and services (RESPONSIVENESS)
  3. 3. © 2018 Michael Hugos 3 SCiWeek 2018 - Hamburg Five Drivers of Supply Chain Networks EFFICIENCY vs. RESPONSIVENESS Responsiveness is a mix of agility and collaboration focused on accomplishing specific goals. “Increase throughput while simultaneously reducing inventory and operating expense.” Goldratt, The Goal Responsive supply chains are the future… effective combinations of technology, process and people 2. INVENTORY How much to make, how much to stock 3. LOCATION Where best to do what activity 4. TRANSPORTATION How and when to move product 5. INFORMATION Basis for making these decisions 1. PRODUCTION What, how, and when to produce
  4. 4. © 2018 Michael Hugos 4 SCiWeek 2018 - Hamburg Three Conditions Enable Responsiveness Responsive supply chains need people to act quickly and collaboratively without waiting to be told what to do… Are there examples of this we can learn from? 1. Information Sharing SEE ( TECHNOLOGY ) 2. Authority to Act ACT ( PROCESS ) 3. Stake in the Outcome IMPROVE ( PEOPLE ) With winning supply chains Winning teams share traits
  5. 5. © 2018 Michael Hugos 5 SCiWeek 2018 - Hamburg Real-Time Collaboration Platform Real-Time Big Data (cloud-based) Multi-Dimensional Analysis and Simulation Customers Business Analytics In - Memory Database Manufacturers Distributors Retailers Financial Markets Cloud-based applications using APIs to combine needed features and functions Responsive supply chains employ technology for effective collaboration and coordinated action Modular and flexible technical architecture Companies use internal systems for internal operations and share data as needed
  6. 6. © 2018 Michael Hugos 6 SCiWeek 2018 - Hamburg Cloud-Based Supply Chain Collaboration 1. Cloud-based software-as-a-service, APIs for data exchange with other applications 2. Intuitive user interface provides context for streams of data – promotes “Situational awareness” for wide groups of people involved in supply chain operations 3. People do the thinking, computers do the calculating – simulations show where different ideas can lead – all can see so consensus emerges quickly Company 4 Company 2 Company 1 Company 3
  7. 7. © 2018 Michael Hugos 7 SCiWeek 2018 - Hamburg Framework for Collaboration (S&OP) 1. Sales Forecasting 2. Demand Planning 3. Supply Planning 4. Reconcile Plans 5. Implement & Monitor NOTES: • Ongoing 5-step sales and operations planning process (S&OP) • Data from Demand Plan and Supply Plan used to create supply chain model. • Reconcile Supply Plan with Demand Plan based on simulation results, adjust model to fix problems • Supply chain model delivering best simulation results becomes operating plan for next 30 days! Demand Plan: - Product specs - Facility demands Supply Plan: - Vehicle specs - Delivery Routes Mkt Forecast: - Sales by market - Prices and costs Operating Plan: Effective supply chain operating plan for 30 days Budget & KPIs: Operating budget and performance metrics Modeling and Simulation 30-day S&OP cycle
  8. 8. 8 © 2018, Michael Hugos SCiWeek 2018 - Hamburg Explore Options - Create Consensus Sales Forecast: sets market demand Demand Plan: sets product demand at each facility Supply Plan: meets product demand Reconcile Plans: simulations find the mismatches between Demand Plan and Supply Plan
  9. 9. © 2018 Michael Hugos 9 SCiWeek 2018 - Hamburg Implement Plan - Monitor Operations Collect and display real-time operating data Spot trends and disruptions as they occur Continue planning and simulating responses to new situations as they arise No plan survives contact with reality…
  10. 10. © 2018 Michael Hugos 10 SCiWeek 2018 - Hamburg Findings to Date • Efficiency – computers automate rote and repetitious work • Responsiveness – people do creative, problem-solving work • Use same technology for S&OP and Monitoring – cross-functional teams plan and monitor supply chain operations making adjustments to respond as situations change (two sides of the same coin). • Effective collaboration occurs when people can see what is happening, when they have authority to act, and have a stake in the outcome • Supply chains become a team sport – successful people and companies seek each other out • Findings based on 20 years work with companies, students and instructors in Asia, Europe and North America.
  11. 11. © 2018 Michael Hugos 11 SCiWeek 2018 - Hamburg Learn More… Presentation excerpted from my book: Essentials of Supply Chain Management, 4th Edition, 2018 • Understand supply chains and how they work • See how new technology changes supply chain operations • Create supply chains for competitive advantage Amazon listing: https://www.amazon.com/Essentials-Supply-Chain-Management/dp/1119461103/ Contact me at: mhugos@scmglobe.com See supply chain simulations at: www.scmglobe.com