SMART Supply Chain
Today’s supply chains are complex, global, and massive in scale. The average manufacturing company can have up to 45 percent of their working capital tied up in their supply chain.
Unfortunately, many companies have not been able to capture the benefits of smart supply chains, and still lack the data, visibility, and control needed to implement efficiency and cost improvements across their supply network.
A recent McKinsey survey found that digitization of supply chains can boost annual revenue growth by 2.3 percent, the largest of any business area. However, only 2 percent of executives said the supply chain is the focus of their digitization strategy. This means there is an opportunity for you to build a competitive advantage and transform your business by embracing smart supply chains.
What are SMART Supply Chains?
Smart supply chains leverage technologies such as the Industrial Internet of Things (IIoT), sensors, big data, artificial intelligence (AI), and advanced analytics to lower costs, reduce waste, better utilize assets, and open up new business opportunities. By integrating supply chains both vertically and horizontally, you gain a better view of parts, inventory, finished goods, and waste across the entire process. You get the ability to identify choke points, increase inventory turnover, better predict demand, and track assets throughout the supply chain, enabling you to find new ways of doing business and implement process improvements that improve productivity and throughput.
Reduce Supply Chain Forcasting Errors
Fully integrated supply chains reduce the risk of supply chain forecasting errors by taking advantage of data, predictive analytics, and machine learning. According to McKinsey, it’s possible to reduce supply chain errors by 50 percent and lost sales by 65 percent through better product availability.
To do this, you need to have complete visibility into all aspects of your supply chain, from your component and part suppliers through to point-of-sale data. By tying production to demand, you can reduce inventory, lower the risk of shortages, and increase efficiency.
Track Location of Everything in Real Time
Once your supply chains are integrated and communicating with each other, you have the ability to see item level quantities and locations of raw materials, inventory, and finished goods in real-time.
This allows you to identify choke points that could result in unexpected delays, effectively manage deliveries to ensure products are delivered on time to customers, and ensure material quality from suppliers.
Manage Fleets More Efficiently
Through IoT and blockchain technologies you can know the location of every vehicle in your fleet and be immediately alerted if there is a breakdown or other issue. You also have the ability to monitor conditions inside the vehicle, critical for perishable or fragile shipments.
For example, you can monitor temperate, humidity, vibration levels, shock, and other factors that lead to damaged goods. This reduces waste, improves customer satisfaction, and ensures product quality at all stages of the supply chain.
Make Stronger, More Informed Decisions
Nearly 80 percent of supply chain and operational executives said they were unable to make data-driven decisions due to a lack of skills and technology since the data they have is unstructured and largely unavailable to them.
With the right systems in place, business leaders across all functional areas can have access to the information they need to make more informed decisions and identify new opportunities for cost savings, revenue growth, customer acquisition, or operational efficiencies.
Technologies
A smart supply chain will transform your business. One estimate suggests that a digital supply chain can lead to a 20 percent decrease in procurement costs, a 50 percent decrease in supply chain costs, and an increase in revenue of up to 10 percent.
That said, technology can often seem overwhelming, especially when it feels like it is constantly changing and new solutions are continuously being introduced. At Celeix, we’re experts in understanding your business and identifying the right technology, operational procedures, and approaches that will have the greatest impact on your business. Through our strategic approach to digital transformation, you will be empowered with the insights and support you need to make your smart supply chain deliver the results you need.
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