Peace of mind in the face of uncertainty

The Covid 19 pandemic and other recent challenges have opened our eyes to the huge potential impact of unforeseeable events and the importance of a smoothly running supply chain.

Tracker SA’s supply chain digital twin is an adaptive and predictive solution for effectively managing and minimising end-to-end risk, providing supply chain managers with peace of mind in a chaotic world

TECHNOLOGICAL ADVANCES PROVIDE A HOLISTIC VIEW OF SUPPLY CHAIN MANAGEMENT

A host of potential risks can strike at any stage in a supply chain, especially when dealing with sensitive items like perishable goods or pharmaceuticals. Now, more than ever, businesses across industry sectors stand to gain significant benefits from electronic, automated systems that offer a holistic supply chain management solution.

Technological advancements for monitoring daily processes and assets in the supply chain environment offer a host of advantages. It is well-proven that these solutions allow managers to monitor, predict, and reduce the chance of things going wrong, by providing full visibility of all aspects of the supply chain.

Technology helps to facilitate the central monitoring and management of resources, processes, and vehicle monitoring and reduce inefficiencies associated with manual processes. But even though technology can increase supply chain visibility, it is not a “silver bullet”.

“The right solution can only be leveraged efficiently with the proper organisational and process changes,” warns Kobus Visagie, executive: business solutions at Tracker SA. “Without the correct enabling tools and organisational processes, even the best people in the world will come up short. A balance is needed between these three core elements.”

There are many dynamics that can help to integrate technology into supply chains. “These include sound processes, good data, appropriate supply chain design, and strong relationships up and down the supply chain,” he explains. “Technology enhances all of these building blocks, which in turn enable the technology to fulfil its promise.”

CONNECTIVITY IS KEY

With technological advances, however, come associated challenges, including the huge amount of data gathered and communicated by real-time information systems. “This can create ‘islands of information’, but these systems also provide a host of unique insights,” Visagie explains. “Data collection tools like vehicle telematics and scenario planning tools support real-time visibility, while communications infrastructure like demand and forecasting tools allow information sharing between facilities and trading partners.”

The Internet obviously plays an integral role, binding these tools together and providing connectivity to everyone in the extended supply chain. This opens up all-encompassing access and visibility to the wealth of real-time data these tools provide.

While the concept of “on-demand” technology isn’t new, it plays an important role in accelerating the effectiveness of information and communication technology (ICT) departments in supply chain management businesses. “This enables organisations to respond dynamically to whatever business challenges might arise, providing products and services on-demand, in real-time,” says Visagie. “Organisations should review their supply chain management initiatives to ensure they support their specific business models and processes. This relates to the workflow, data, and integration of technology, as well as the ability to share and connect data, and make decisions.”

SUPPLY CHAIN DIGITAL TWINS PROVIDE “CONTROL TOWER” CAPABILITIES

Supply chain digital twins are the logical progression in managing supply chain risk. “A digital twin is a virtual simulation model of real-world supply chain activities, allowing technology-enabled businesses to establish ‘control tower’ capability,” explains Visagie. “It is used to analyse supply chain dynamics and predict process success via real-time data of planned and released work and sales orders, deliveries, pickups, ePods, and approvals.”

This technology has been a major driving force behind the digitalisation and optimisation of supply chains, improving the adaptability of businesses during difficult operational periods and testing for potential risks. The digital twin can be set up to oversee extensive operations, including hundreds of individual assets and inventory positions, storage and distribution facilities, and logistical considerations.

Data informing simulations is gathered from technology across a range of platforms to provide a comprehensive picture of the supply chain. “IoT devices like telematics, sensors, and Artificial Intelligence (AI) cameras collect specific real-world data, while integrated logistics and transport databases incorporate operations between business partners,” explains Visagie. “Business-to-business operational databases that share order-related and electronic deliveries in near real-time also provide important data for running simulations. Automated and integrated vendor information, user experience feedback, online reviews, customer service tickets, social media platforms, and real-time messaging platforms can provide vital information on how operations are received by suppliers, distributors, and customers.”

RISK MITIGATION ASSISTANCE OF THE SUPPLY CHAIN ENVIRONMENT

Digital twins can be leveraged in a number of different scenarios to assist in risk mitigation in the supply chain environment, such as in the planning of transportation and facilities. In this situation, various technology platforms can be utilised to establish a digital twin of the supply chain environment.

“This can assist in planning demand from customers, for example. The technology platforms use real-time data to monitor aspects like physical assets, people, and locations,” says Visagie. This helps supply chain managers to better plan and react to variable demand. It also facilitates optimal asset use and ensures on-time delivery in full (OTIF) to customers.

“These automated and integrated technology platforms can help businesses better minimise their supply chain risks through alert functionality for deviations against the plan in real-time,” says Visagie.

In other words, real-world problems can be almost instantaneously mirrored in the digital environment to highlight issues requiring action. “This may include new on-demand orders that require fulfilment, drivers running late due to traffic congestion, vehicle breakdowns, and loading or off-loading variances against the schedule,” he explains.

Supply chain digital twin platforms can also optimise inventories by leveraging data from the demand forecasting function. This assists in avoiding stock-outs and minimising overall warehousing costs, addressing challenges experienced in both “single-echelon” (an inventory in a single warehouse) and “multi-echelon” (across the network) inventory systems.

“Other situations that can benefit from this technology depend on specific supply chain demands and needs,” says Visagie. “But it is important to remember that there are also challenges when establishing successful supply chain digital twins, including data quality and technology adoption.”

It is vital that the real-time data feed can be trusted, as data quality is the basis for the success of planning and execution functions. “The reliability of both technology and vendors is paramount to data integrity. There are various AI and machine learning technologies that can assist supply chain managers in verifying the accuracy and reliability of usable information,” he notes.

Even with all the technology advancements on the market, industry verticals may still be hesitant to embrace new technology platforms. “Adoption is crucial. Complexity can be a hurdle, but with a credible vendor as a business partner, a move in this direction can help to optimise processes and minimise risks within existing supply chains,” says Visagie. 

STREAMLINING YOUR SUPPLY CHAIN: THE TIME IS NOW

“When correctly configured and implemented to optimise functionalities, technology like supply chain digital twins will very quickly pay for itself,” he continues. “It contributes not only to risk mitigation but also – immeasurably – to revenue growth, cost minimisation, and positive customer sentiment. There is no time like the present to partner with a trusted technology vendor to vitalise and streamline your supply chain.”