Monday, January 30, 2017

Digital Supply Chain

The Digital Economy:

Business networks drive a sharing economy:
Every business is more heavily dependent on its network of partners than ever before as we leverage contract manufacturers, logistics service providers, and other third-party organizations to expand reach and improve customer service. If not managed properly, this can result in wasted resources, higher operating costs, lost sales, and increased supply chain risk. It is critical to share information, experience, and processes to align and coordinate business decisions and collaborate across business networks.

There are numerous types of networks. For example, product stewardship networks manage global product safety and compliance across a global network of suppliers; manufacturing networks enable visibility and collaboration with both internal and contract manufacturing sites; and asset networks optimize asset usage, performance, and availability. These and other networks (and networks of networks) will be the platforms on which successful businesses innovate, collaborate, grow, and continually evolve – at both speed and scale.

Running a sustainable business in the face of resource scarcity:
Demand is exceeding supply for many resources around the world. Raw materials such as water,minerals, oil, and gas are key components to many supply chains, but obtaining them is often a challenge. Labor scarcity is also a major issue, with the aging and shrinking workforce struggling to adapt to the changing skill sets required by the extended supply chain. These challenges increase risk for an organization and drive the need for alternate formulas and recipes and sustainable manufacturing. Alternate sources of energy and leveraging reused or recycled materials are also key to lowering supply chain costs.

Steps to digitize supply chain:
Re-imagine:
The right strategy always gives results. Start reimagining your business outcomes and more customer centric 

BUSINESS MODELS
  • Drive business based on a true picture of customer demand, both structured and unstructured
  • Deliver individualized products and services
  • Leverage product platforms as a base for customization
  • Leverage your network of partners to better design, make, and deliver products
  • Take into account the scarcity of natural resources and talent in a sustainable business model
BUSINESS PROCESSES
Change or eliminate fundamental business processes by leveraging digital technologies to:
  • Create more connected, market-driven, and customer-centric distribution networks
  • Drive cross-departmental and company planning processes
  • Transform asset management with predictive,connective capabilities
  • Leverage the Big Data now available to drive predictive decision support and end-to-end visibility
WORK
  • Automate non-value-added tasks in areas such as the warehouse and production floor
  • Boost productivity and decision support by getting the right information to the right people to help them do their jobs more efficiently
  • Improve user experience with self-learning software that enables workers to be more effective and efficient with 3D visualization and other interactive technologies
Platform:
In order to reimagine the business a right platform must be in place. This platform must have the digital capabilities. The right technology enables agility and provides environment to create innovation

SAP’s digital framework for the extended supply chain is based on the five key pillars of a digital plan and architecture:
  1. Customer-centricity across all channels
  2. Individualized products driven by Industry 4.0 and IoT to enable new business models and increase the need to manage Big Data
  3. Sharing economy across all business networks
  4. Optimizing scarce resources such as people and natural resources in a sustainable world
  5. Real-time visibility across core business processes such as supply chain, R&D, manufacturing, and operations
With right strategy in business and right platform in place, the ROI will be high.

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