Tag Archives: Technology

Supply Chain Network Optimization Technology is Ripe for Disruption

Posted on by

Something struck me after spending a few days in Phoenix at Gartner’s Supply Chain Executive Conference.

Supply Chain Network Optimization is key to running an efficient and profitable operation today.

But while the market has changed, network optimization hasn’t actually advanced much since the 1990s. Yes, there are lots more features and a big increase in computing power. Yet, network optimization is still just a richer version of the 90’s experience.

Analyzing the Software Market

Network optimization software has become a big business that’s experienced exponential growth. There has been a strong adoption of boxed solutions that are feature rich with many bells and whistles.

What I heard at the Gartner conference is growing frustration with these large packages that have become cumbersome to use, too difficult for the average supply chain expert, lack flexibility and have high price tags. Sound familiar?

So what is the alternative? First, we need to go back to the original purpose. Supply Chain teams shouldn’t be overly focused on technology. Instead, they should have their eyes set on the desired outcome.

Supply Chain teams want a supply chain network that runs in an optimized fashion, with signals that indicate when and where to invest in future infrastructure. The network optimization tool should just be a means to an end.

So why hasn’t it become easier and cheaper to have an optimized network? Why are companies investing more and more in this focused discipline?

Read more at Supply Chain Network Optimization Technology is Ripe for Disruption

Share your opinion with us in the comment box and subscribe us to get updates.

Related articles

Samsung eyes blockchain technology to cut supply chain costs by 20%

Posted on by

Samsung is targeting the introduction of blockchain technology that could reduce its global shipping costs by up to 20%.

Song Kwang-woo, vice president of Samsung SDS, the Korean multinational’s specialist technology arm, has revealed the company is investigating the possibility of using a blockchain ledger system to ‘fuel its digital transformation’.

By automating channels of communication both internally and with port authorities, it predicts that it will be able to improve efficiency by up to a fifth – potentially saving billions of dollars every year.

“It (blockchain) will have an enormous impact on the supply chains of manufacturing industries,” said Song, speaking to Bloomberg. “Blockchain is a core platform to fuel our digital transformation.”

Samsung works with approximately 2500 suppliers around the world, building relationships around five key criteria: cost competitiveness, human resources capacity, on-time delivery, response to risk and supplier competitiveness. SDS says it will handle around 488,000 tonnes of air cargo and 1mn TEUs in 2018 alone.

Last May, SDS launched a blockchain pilot to track imports and exports of shipments in Korea’s shipping sector, a trial that concluded at the end of the year.

Read more Samsung eyes blockchain technology to cut supply chain costs by 20%

Share your opinions with us in the comment box below and subscribe to be the first one to get our updates.

Related articles

CPG Supply Chains are adapting to disruption, new research finds

Posted on by

0Online shopping, new digital technologies, and increasing channel fragmentation are intensifying the pressures on US consumer packaged goods (CPG) supply chains.

There are clear steps CPG companies must take in order to prepare, according to a new report authored by The Boston Consulting Group (BCG) and commissioned by the Grocery Manufacturers Association (GMA).

The report, ‘How CPG Supply Chains Are Preparing for Seismic Change’, highlights the top trends affecting CPG supply chains and the effect on CPG companies’ performance.

Among the issues addressed in the report: e-commerce sales growth, service-level performance, channel proliferation, network design, and cash management trends.

The report is based on the 2017 Supply Chain Benchmarking Study, a study of the US units of more than 30 leading CPG companies conducted jointly by BCG and GMA.

“It’s been a turbulent couple of years for the grocery industry, with major disruption and dislocation in the retail landscape,” commented Daniel Triot, senior director of the Trading Partner Alliance of GMA and the Food Marketing Institute.

“Despite the important performance gains in the supply chain in the past two years, CPG companies cannot be complacent. This report aims to provide guidance for CPG companies looking to harness new digital technologies and trends to support continued growth.”

Over the next two years, half the growth in North American grocery sales will come from e-commerce. But only 6% of CPG companies have a dedicated e-commerce supply chain team, and only 3% are able to fully track sales by channel.

Read more at CPG Supply Chains are adapting to disruption, new research finds

If you have any questions, post it at the comment box or contact us for information. Subscribe to get updates in your inbox.

Related articles

Scientist Ng brings AI to manufacturing

Posted on by

Artificial intelligence pioneer Andrew Ng launched a new AI company Landing.ai on Thursday.

On the same day, the company announced a strategic cooperation with electronics contractor Foxconn to develop a program that aims to bring AI and machine learning technologies to the manufacturing industry.

According to Ng’s statement, his company is developing a series of programs to help enterprises transform for the age of AI, including providing new technologies to optimize companies’ organizations structures, train employees, and more. The company’s businesses will start in the manufacturing industry.

Ng said the AI technology is conductive to manufacturing enterprises to improve quality testing process, shorten products’ design cycle, remove bottleneck of supply chain, reduce waste on materials and energy and raise output.

AI will revitalize manufacturing industry and generate jobs in the industry, he said. I In the age of AI, the employees need to accept new skills training to fit jobs that will be more complex than before, Ng added.

Landing.ai will provide solutions to some employees who are likely to be laid off, Ng said. Currently, the company is discussing the training plan with some potential partners including local governments.

Read more at Scientist Ng brings AI to manufacturing

Subscribe us to get updates in your inbox and leave your comments below.

Related articles

Real-Time Supply Chain Visibility & Connectivity

Posted on by

Through the rich integration of experienced supply chain professionals, world class technology, and customer insights, C.H. Robinson is reinventing global supply chains by making them more prescriptive, automated and efficient.

Navisphere Vision continues to advance the powerful and proven capabilities of C.H. Robinson’s proprietary Navisphere technology platform.

Microsoft, an innovator in fulfillment and logistics capabilities and a customer of C.H. Robinson’s TMC division, has been using Navisphere Vision since its alpha release in 2016.

“Navisphere Vision helps us understand the things that we couldn’t before. It provides the visualization that connects data and the real-time events that are happening within our supply chain,” said Alaina Hawkins, senior manager of global logistics at Microsoft.

“Navisphere Vision helps us make decisions on a more precise, real-time level so we can address any challenges that might occur, react in a less randomized fashion, create predictability throughout our supply chain, and increase collaboration so we can deliver our products to customers on time. It’s tremendously powerful.”

In addition to providing real-time visibility down to an SKU level, Navisphere Vision delivers insights and impacts of potential disruptions from weather, traffic or current events, as well as predictive analytics to help shippers make better, faster decisions.

Read more at Real-Time Supply Chain Visibility & Connectivity

Subscribe us to get updates in your inbox, and post your comments below.

Related articles

Top tips to build a robust supply chain

Posted on by

All businesses need to ensure its goods and services are procured at the lowest cost and meet the company’s needs in terms of timely delivery, quantity, quality, and location.

This is essential in not only providing the best customer experience, but also in ensuring you stay on top of your competitors, as consistency in the supply chain is key. However, the supply chain management world is constantly evolving and it is key to keep pace with both market expectations as well as opportunities.

Choosing and procuring the right technology is just the beginning of the variety of challenges that are present when managing and securing an IT supply chain. Organisations need to ensure effective asset management configuration and deployment are continuing to take shape, while maintaining technology standards and continuity of supply.

Here are some top tips in managing and creating a robust and effective supply chain, with experience and advice from the largest FTSE listed British IT service provider with over a 30-year heritage in IT and information enablement.

Be clear on expectation and deliverables

Many organisations will issue identical performance indicators and market assessment techniques on all engagements they have, irrespective of the technology being purchased or outcome desired by the business.

This is a detrimental approach as nuances and subject matter expertise are unable to be imparted by the partner that could potentially save money, time or actually mitigate risk.

Truly assess each engagement and accurately as well as realistically assess the desired outcomes/output that you wish to achieve, in comparison to work loads and true capabilities of workforces and systems.

Read more at Top tips to build a robust supply chain

Share your opinions with us in the comment box and subscribe us to get updates.

Related articles

Top 20 Supply Chain Management Software Suppliers 2017

Posted on by

The market for supply chain management (SCM) software, maintenance and services continued its growth in 2016, generating more than $11.1 billion, a 9% increase over 2015 revenues, according to the research firm Gartner.

That total includes applications for supply chain execution (SCE), supply chain planning (SCP) and procurement software. Since the market’s 2% decline in 2009, the market has posted double-digit growth in four of the past six years, according to Gartner. The SCM market is expected to exceed $13 billion in total software revenue by the end of 2017 and exceed $19 billion by 2021, Gartner forecasts, with software as a service (SaaS) enabling new growth opportunities.

“It continues to be a good year for the supply chain overall,” says Chad Eschinger, managing vice president of Gartner. “The Cloud-based segment grew 20%, which is consistent with what we’ve seen in recent years.”

The push for Cloud capabilities also fueled some of the acquisition activity over the last year. Eschinger cites examples such as Infor’s acquisition of GT Nexus, Kewill’s acquisition of LeanLogistics, Oracle’s acquisitions of LogFire and NetSuite, and E2open’s acquisitions of Terra Technology and, more recently, Steelwedge.

“Broadly speaking, we’re seeing cyclical consolidation,” Eschinger says. “For some companies it’s a land grab, for others it’s an effort to add functional and technical underpinnings to go to the Cloud or provide a fuller complement of Cloud capabilities.”

Suite vendors are increasingly inclined to offer end-to-end solutions, Eschinger says, tying in customer relationship management capabilities, replenishment, network design, clienteling and more. In addition to supply chain efficiency, these solutions are also aimed at improving and standardizing the consumer’s experience.

“The Amazon effect continues to wreak havoc in retail and for manufacturers selling direct-to-consumer,” Eschinger says. “Everyone wants real-time visibility into inventory, so data and the associated analytics continue to be front and center for most organizations.”

Read more at Top 20 Supply Chain Management Software Suppliers 2017

Let us know what you think about this article and subscribe us to get updates.

Related articles

Disney, Depp and the cyber supply chain risk management problem

Posted on by

One field-tested security strategy for information systems and digital content is to address the problem through processes, people and technology. On the process front, all companies involved in the production of digital IP should, by now, be adhering to a proven information security framework that fully addresses supply chain risks. That includes making sure your digital IP is protected at all times, even during post-production (or maybe we should say especially during post-production, given recent incidents).

Fortunately, there is a ready-made cybersecurity framework that companies can use, at no charge, thanks to the US federal government, which has done some sterling work in this area, namely the NIST Cybersecurity Framework.

The current version is a great way to get a handle on your organization’s cybersecurity, and the next version, currently in draft, goes even deeper into the need to maintain cybersecurity throughout the supply chain. For that reason, the draft is worth quoting at length:

“The practice of communicating and verifying cybersecurity requirements among stakeholders is one aspect of cyber supply chain risk management (SCRM). A primary objective of cyber SCRM is to identify, assess and mitigate “products and services that may contain potentially malicious functionality, are counterfeit, or are vulnerable due to poor manufacturing and development practices within the cyber supply chain.”

Read more at Disney, Depp and the cyber supply chain risk management problem

Leave your comments below or contact us for discussions.

Related articles

New DHL report reviews supply chain real estate

Posted on by

Companies are re-thinking their go-to-market strategies and, as a result, making different choices about how they locate, design and operate their distribution networks.

This has created a new landscape for supply chain real estate, according to a report published by DHL. Global and regional supply chains are changing, as they adapt to the new realities of commerce and competition.

The findings are part of The New Landscape of Supply Chain Real Estate report, which has been authored by Lisa Harrington, President of the lharrington group LLC, in collaboration with DHL.

The report states that while a healthier global economy fuels the demand for supply chain real estate, it is not the only driver.

Four other forces are at work, and they are having a transformational effect on companies’ distribution center networks.

They include:

  1. The e-commerce revolution
  2. Globalization and right-shoring
  3. Mergers and acquisitions
  4. Technology innovation

“The face of global supply chain networks is changing,” said Harrington, author of the report.

“Gone are the days of operating a static real estate portfolio and tweaking it every five to seven years. Business is too dynamic and the stakes are too high.

“The fact is, the way companies manage their supply chain real estate portfolios has morphed from a tactical/operational concern to a strategic differentiator. Supply chains that operate more nimbly and at lower cost don’t just save money. They drive growth.”

Read more at New DHL report reviews supply chain real estate

Share your opinions about this article and subscribe us to get updates.

Related articles

Three supply chain challenges and how to overcome them

Posted on by

The modern supply chain is becoming more complex by the day. Businesses continue to struggle with keeping their supply chain under control but hidden risks still pose a significant threat to the industry. Even with all the new technologies making their way to the industry, businesses must be aware of these hidden risks and understand how to react appropriately.

Businesses of all kinds must keep supply chain visibility, cyber risk and natural disasters in mind at all times. All of these factors or even just one could have a significant impact on a company’s bottom line. In this current edition of the ‘Challenges and Solutions’ series, we will take a close look at the most troublesome issues in the supply chain and how businesses can avoid or plan for these risks.

New technology

Advancing technology is making its way into the supply chain, forcing businesses to constantly change systems. New services that provide an “Uber-Like” freight experience require supply chain managers to constantly hone their talents and adapt to these kind of digital disruptions. Not only with the Internet of Things be transforming the supply chain end to end, the way people utilize technology to create new processes will need to be monitored. The challenge is keeping supply chain managers and procurement professionals up-to-date and trained with all these new advancements.

Finding a solution can be challenging at first. It will take some time for a business to discover the right process that works for them. There is no one answer fits all, rather a unique, business specific training program must be developed. Some solutions may include putting together a team in charge of locating the latest supply chain innovations and coming up with a plan to train the rest of the staff. Others could be outsourced training programs funded by the organization whose employees will be taking part. Continuous training will be vital in order to remain effective in this transforming industry.

Read more at Three supply chain challenges and how to overcome them

Share your opinions with us in the comment box, and subscribe to get updates.

Related articles