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DHL Supply Chain introduces first digital twin of warehouse in Asia for Tetra Pak

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The market leader in contract logistics, DHL Supply Chain, is introducing its first digital twin of a warehouse in the Asia-Pacific region for Tetra Pak with one goal in mind: optimised, agile and cost-efficient supply chains.

The warehouse is one of the biggest Tetra Pak warehouses worldwide and remains the first smart warehouse for DHL in the Asia-Pacific region that exists as a digital twin.

Having launched an integrated supply chain for Tetra Pak in Singapore, the digital twin is supplied with real-time data on a consistent basis from the physical warehouse in Singapore and makes changes consistently in real-time.

“The joint implementation of such a digital solution to improve Tetra Pak’s warehousing and transport activities is an excellent example of the smart warehouses of the future,” said Jerome Gillet, CEO, DHL Supply Chain Singapore, Malaysia, Philippines. “This enables agile, cost-effective and scalable supply chain operations.”

DHL Supply Chain is focusing on technologies and processes such as physical objects like industrial trucks kitted out with IoT technology. The DHL Control Tower tracks incoming and outgoing goods to ensure all goods are stored in the correct way within 30 minutes of receipt.

Tetra Pak has developed a smart storage solution that tracks and simulates the physical condition and individual stock levels in real-time, allows smooth non-stop coordination of operations, makes faults visible as well as improves safety and productivity in the warehouse.

DHL Supply Chain Singapore has in-depth expertise in the region in achieving individual customer needs, the firm provides Third-Party Logistics (3PL) solutions in which customers can outsource their logistics management and operations.

“We expect the partnership with DHL Supply Chain to further increase our productivity and maintain high standards in our supply chains,” commented Devraj Kumar, Director, Integrated Logistics, South Asia, East Asia & Oceania, Tetra Pak.

Read more at DHL Supply Chain introduces first digital twin of warehouse in Asia for Tetra Pak

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Why You Don’t Need Perfect Data to Begin Implementing Sales & Operations Planning

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Royal Boon Edam a global market leader in entry solutions, was looking to shift towards a combined business model of “made to stock” and “assembly to order” – where modules which could be placed into a configuration requested by the customer would be ready for production, this meant the company needed a different logistics approach to fulfilling these orders.

An interview with Boon Edam’s Aron Waas

Implementing Sales and Operations Planning (S&OP) has many benefits.

To truly leverage it to improve business performance and predictability, you need to embark on a change management process and you need the right technology to self-enable your team.

Often, teams think they also need plenty of clean and accurate data to do it right.

But starting small can pay off. We spoke with Aron Waas, Global Supply Chain Director at Royal Boon Edam International to hear about his company’s experience.

Hello Aron, can you tell me more about Boon Edam and your role as Global Supply Chain Director?

Boon Edam is a private, family-owned company that is over 140 years old. We are a manufacturer of premium entry systems, such as revolving doors and security access gates.

We have 3 factories, one in the USA, one in China and one in the Netherlands (in the city of Edam). We have over 20 sales subsidiaries and, at this stage, 3 different Distribution & Support Centers.

These centers (or D&SCs) support our sales subsidiaries with all their inquiries, service requests and the delivery of products and services.

I am part of the global management team, responsible for everything that has to do with supply chain management. The directors of our D&SCs report directly to me.

You are currently using AIMMS to enable your S&OP process. What was the driver to look for S&OP technology and how did you do things before?

We have worldwide demand for all kinds of products and services and as I mentioned before, we have 3 different factories. We were trying to optimize the workload between these factories to have our manufacturing be as efficient as possible.

We had a financial reporting tool and based on the financial forecasting of our different sales subsidiaries, we made a forecast for products and services which was translated into a monthly demand plan and a capacity plan. This process was based on a lot of assumptions.

Read more at Why You Don’t Need Perfect Data to Begin Implementing Sales & Operations Planning

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Supply Chain Impact on Shareholder Value: A Performance Paradigm?

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If you ask a supply chain leader how they impact their company’s performance, the response is almost muscle memory, ‘reduce cost and inventory while improving service.’ If you ask the same leader how they impact shareholder value, there is often a long pause.

To shed some light on the subject, the APICS Supply Chain Council conducted a live poll during its jointly hosted Best of the Best S&OP Conference in June. Two poll questions were developed to examine attendee perception regarding shareholder value. Almost two-thirds of the respondents reported that they had some form of supply chain scorecard. Conversely, only three-percent reported that they linked supply chain performance to shareholder metrics.

This dialogue with supply chain leaders has sparked a number of research questions, especially in light of the fact that supply chain executives share a seat in the C-suite, including:

1. What are the key shareholder metrics that matter?

For a publicly traded company the ultimate measure is earnings per share or stock price. For privately held companies, the focus tends to be on the attributes that relate to earnings per share: growth, profit, and return.

2. What are the supply chain performance levers that intentionally add to shareholder value?

The Growth attribute is the conundrum that keeps supply chain leaders up at night. Traditionally, the assumption was that great service level, including both lead-time and reliability, didn’t lose sales and potentially helped grow share of customer’s ‘shelf space’ by having predictable availability.

3. How does that affect your supply chain strategy?

The correlation between supply chain excellence and earnings per share certainly is intuitive, but there is data to suggest that even the best supply chain companies still are not maximizing potential shareholder value.

Read more at Supply Chain Impact on Shareholder Value: A Performance Paradigm?

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