Warehousing and Distribution
Article | July 17, 2023
In the past couple of years, supply chain management has witnessed massive disruption. The implications of the pandemic have put pressure on manufacturers to revisit and reimagine how they manage their supply chains. This is why ERP software is so mission critical in supply chain management. It not only helps supply chain chiefs reduce overhead costs but also enhance efficiencies and timely deliveries.Here are a few ways ERP plays a role in supply chain management to keep it moving.
Complete Visibility
Having a 360-degree view of the supply chain is integral to making the right decisions regarding procurement and purchase of materials and inventory. It also allows suppliers to have complete control and course correct when necessary. The insight into the complete supply cycle allows suppliers to respond to customer queries better.
Inventory Tracking
ERPs are truly a one stop shop for manufacturers. They feature extensive inventory tracking on one system so manufacturers are in the loop about inventory control and can better optimize their inventory and resources. For manufacturers it is crucial to know where their inventory is, what has been shipped, what is on hand at all times. With ERPs, it becomes cheaper to keep a stock of the inventory and place orders when it’s running low.
Vendor Performance
Vendor performance is an essential aspect of supply chain management. Being able to compare vendors, measure certain quality and quantity metrics and identify bottle necks help suppliers choose the right vendor as well as gives purchasing departments the power to negotiate for better pricing by consolidating purchase. ERPs allow suppliers to do all the above and more.
Procurement
Procurement of goods can be a complex process if done without the right tools. It also impacts the whole supply chain so it is doubly imperative to ensure the procuring and supply of goods is on time. This is especially true in an environment of custom manufacturing. Add to that the requirement of procuring products with lengthy lead times, manufacturers need to take into considerations product that need to be ordered long before they are even designed. ERPs allow manufacturers to keep all departments including engineering and warehousing to work in sync and plan to procure goods on time.
Real-time Reports
Reporting is labor intensive and can be inefficient when it comes to gathering and processing data. With ERPs, manufacturers can generate reports in real-time and all manual data collection processes are replaced with automation, saving time and money in viewing the insights into the movement of products in the supply chain. It enables manufacturers to get a better understanding and make timely decisions that improve the overall efficiency of the supply chain.
To Conclude
ERP systems offer endless opportunities for manufacturers to improve their processes, save time and resources and optimize and enhance inventory planning. With the right tools, it is possible to establish supply chain management that outperforms and is resilient even in disruptive times.
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Supply Chain
Article | August 17, 2023
Supply chain is the backbone of any business. Since there is a supply chain in existence, you can buy whatever product you want. The supply chain is evolving since the Industrial Revolution, and it is still changing, and the evolution journey is fascinating. Before moving forward with the article, first, let's understand supply chain and supply chain management.
What is a Supply Chain?
A supply chain is an entire process of producing and selling commercial goods, beginning with the procurement of raw materials and ending with the distribution and sale of the goods. The supply chain ensures that a product is available in the right place, at the right time, and the lowest possible cost while ensuring the product quality. The supply chain aims to provide the maximum value to the customer at the minimum likely costs. The supply chain is the single most significant expense for businesses, and it provides them with a tremendous opportunity to improve and increase savings and profit margins. The price of most products is competitive in the market, but the supply chain determines the product's profit margin. The demand for products and services fluctuates for various reasons, and meeting this fluctuating demand with a higher degree of quality requires knowledge of supply chain management. Effective supply chain management is essential for any business to compete in the market.
What is Supply Chain Management?
Supply chain management is an essential factor in a business's long-term success. The management of how goods and services evolve from raw materials to products sold to consumers is known as supply chain management. It includes the processes of transporting and storing raw materials, storing finished goods until they sell, and tracking where sold goods go so that you can use the data to boost future sales. Supply Chain Management includes all aspects of business activities, including logistics, purchasing, and information technology. Materials, finances, suppliers, manufacturing plants, wholesalers, retailers, and consumers are all combined into a single system. A business with a well-managed supply chain can significantly reduce all operating costs associated with that chain, resulting in higher profits. The main goal of effective supply chain management is to increase profitability by improving customer satisfaction and reducing business costs. Profits improve as expenses are in control and reduced when possible. When the costs of purchasing raw materials and manufacturing goods drop, the operating costs also decrease.
Challenges in Supply Chain Management
There are many challenges related to supply chain management. In this section, we will focus on some of the most significant supply chain management challenges.
• Visibility: It is a significant issue in supply chain management. Businesses are unable to track all international cargo. The majority of data on the ocean or air shipments is often unavailable. Between 2008 and 2016, an average of 600 containers lost at sea (it does not include catastrophic incidents). These figures are concerning because the amount of cargo shipped over time is rapidly rising.
• Uncertainty: Uncertainty has been difficult in supply chain management. Demand planning is essential because many businesses have massive amounts of leftovers. If it is perishable, it is thrown away. There is a lot of waste, and it's all because of bad planning. In addition, initial raw materials may be unreliable, or lead time may be unpredictable. It isn't easy to be confident of any part of the supply chain, mainly because it is an extensive system.
• Customer Service: Supply chain management is all about getting the right product to the correct location at the right time. It seems easy at first, but it can quickly become complicated.
• Cost Management: Increasing energy/fuel and freight costs, a more significant number of global customers, technology, rising labor wages, new regulations, and rising commodity prices all strain operating costs.
• Planning and Risk Management: Annual reviews and redesigns are needed to be efficient and effective. These changes are in reaction to market changes, such as new product releases, global sourcing, credit availability, and the need to protect intellectual property. To monitor and minimize these threats, they must be identified and quantified.
• Supplier/Partner Relationship Management: It is crucial to create, understand, and follow mutually agreed standards to understand current performance and areas for improvement better. Using two separate approaches to measure and communicate performance results is a waste of time and resources. Trusting the system that was in place to ensure consistency and better supplier/partner relationships is necessary.
Emerging Trends in Supply Chain
The supply chain process is continuously evolving. The emerging supply chain and logistics trends prioritize intelligent, tech-driven management to minimize operational costs and enhance efficiency. The logistics and supply chain aspect is vital for any business in supplying high-quality raw materials, ensuring an efficient manufacturing process, and tracking, shipping, and storing finished goods.
Companies that implement well-designed supply chain practices can satisfy customer needs more quickly and efficiently. This improves customer relationships and loyalty, resulting in increased revenue and the acquisition of new customers through positive word of mouth.
Let's look at some significant emerging trends that are expected to shape and develop supply chain operations in the future.
Digitization of Supply Chains
Digitization is the process of reinventing logistics operations by combining the latest technology with other physical and digital assets. Digitization allows us to better adapt to the fast-paced, highly competitive, omnichannel business environment.
Digitization increases the speed, dynamics, and resiliency of supply chain operations, resulting in improved customer responsiveness and, ultimately, increased revenue. Companies that embrace digitalization can gain genuine value, improved revenue, and market valuation.
Companies should significantly redesign their supply chain strategy to gain the full benefits of digitization. It is not enough to decorate it with digital technology.
The Internet of Things (IoT) occupies a significant position in digitalization as a highly transformational technology solution in the logistics sphere. The Internet of Things (IoT) is a network of interconnected computing devices that allows data to be sent over networks without human input. It assists businesses in monitoring inventory, managing warehouse stock, optimizing fleet routes, and reducing dead miles.
Artificial Intelligence
Advanced Artificial Intelligence solutions have several uses in the supply chain, particularly in the warehousing area. The procurement process involves using gesture recognition solutions instead of keyboard and mouse. It also includes self-driving vehicles, which are designed to navigate without human assistance.
In the supply chain, the concept of robotics and automation is widely implemented. The new generation of robots is easier to program, more flexible, and more affordable. Their job is to help employees with repetitive and physically challenging tasks.
Enhanced Supply Chain Visibility
Proper supply chain data analysis can significantly boost business forecasting and decision-making. It can also optimize the use of inventory management, storage, and transportation resources.
Supply chain visibility provides information on what is happening at each stage of the supply chain. It is crucial for the overall efficiency of the supply chain process, which includes sourcing, manufacturing, transportation, and delivery.
Real-time inventory management is one of the advantages of enhanced chain visibility. It uses mobile point-of-sale systems and sensors, and it elevates inventory management to a whole new level.
For example, instead of paying for purchased goods at a store, customers can take the desired products and have the products immediately charged to their credit and debit cards. Furthermore, real-time inventory management allows for the replacement of goods as they are consumed.
Circular Supply Chain
The term "linear supply chain" refers to the traditional concept where goods travel in a straight line (from raw material to finished product). Modern logistics techniques are focused on the circular supply chain idea, which involves reusing previously, used products as raw materials.
Reusing products and materials is referred to as reverse logistics, and it is a novel and innovative technique. It assists businesses in reducing administrative and transportation expenses, increasing sustainability, improving customer service and loyalty, creating value, and conserving resources.
Used products can be kept in circulation if businesses work together with their suppliers and customers.
More focus on Risk Management and Supply Chain Resiliency
Without a doubt, companies must seriously consider supply chain risk management as a means to prepare for unfavorable circumstances. The increasing use of outsourcing, offshoring, product versatility, supply chain security, and significant interdependence across the supply chain highlights the need to deal with risks in the supply chain.
However, no matter how solid the plan is, it cannot prevent errors from happening. Here's where supply chain resilience comes into play. It is an accurate indicator of a company's ability to survive disruptive circumstances.
Visibility throughout the supply chain is necessary to detect disruptions, close collaboration with suppliers and distributors so that alternative supply routes can be found, and a good incident response plan to provide a course of action when disruption occurs are all steps that are important to make the supply chain more flexible and resilient.
Use of SaaS in the Supply Chain
The software-as-a-service (SaaS) Sapproach is growing in popularity in supply chain technology and logistics management and the growth of cloud computing. This is primarily due to SaaS's security and safety and the convenience of paying for precisely the services you require. Companies can avoid the high fixed costs of system maintenance, upgrades, and infrastructure-related expenditures by using SaaS.
Supply chains are continuously evolving technology, and the diversity of employee skill sets is playing an essential role in this evolution. Organizations are becoming more conscious of changes in their market competition and continuously updating or even reinventing their market offering to maintain and develop their market positioning.
Many companies are already turning to technology to improve their supply chain operations; however, before new systems are implemented and employees are upskilled to adapt to new ways of working, existing processes must be reviewed to eliminate waste activities from the supply chain, and data must be cleansed. To meet consumer demands, supply chains must be constantly checked for efficiency improvements and aligned with corporate strategy. At present, many organizations are reviewing the length of their supply chains, intending to minimize the overall size and bring supply chains closer to the organization or the end consumer, reduce risk exposure, eliminate waste, and align with corporate strategy.
FAQ’s
• What are the three foundations of supply chain?
The three foundations of a supply chain are strategy, service, and cost. Aligning the strategy, service and cost is essential to support your company’s overall business growth and objectives. A good strategy along with good service and reduced costs helps in increasing profitability and customer satisfaction.
• What are the pillars of supply chain?
Plan, Source, Make, Deliver and Return are the pillars of supply chain.
Planning involves strategies and methods to be planned, Sourcing means procuring raw materials and other services, Making means manufacturing, Deliver means ensuring that the products reach the customers on time and Return means post delivery customer support that is associated with all kinds of returned products.
• Why supply chain management is important?
The management of how goods and services evolve from raw materials to products sold to consumers is known as supply chain management. It includes the processes of transporting and storing raw materials, storing finished goods until they sell, and tracking where sold goods go so that you can use the data to boost future sales. A business with a well-managed supply chain can significantly reduce all operating costs associated with that chain, resulting in higher profits. The main goal of effective supply chain management is to increase profitability by improving customer satisfaction and reducing business costs.
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Warehousing and Distribution
Article | June 27, 2023
The pandemic has had a significant impact on the logistics and shipping sectors, forcing businesses to rethink their supply chain tactics. Fresh COVID- Supply systems around the world are already under threat from 19 outbreaks. China's measures to stop the spread of Omicron by shutting down shipping terminals caused a lockjam of cargo ships. A similar scenario was seen in US and European ports that were congested as a result of a significant increase in cargo.
Additionally, these difficulties have been made worse by the tremendous staff shortage in the US. Although there are more job openings than before, the total strength of the workforce has taken a hit. A report by WNS and Corinium Intelligence reveals that over 60% of shipping and logistics organizations have amped up the automation aspect of their operations by two years. So, what does that mean for the future? In this article, we will talk about the four most promising trends that will define the shipping and logistics industry in 2025.
Live Monitoring Powered by Big Data and the Digital Twin Technologies
Big data is simplifying the ability to be agile, efficient, and cost-effective, and connectivity with other technologies and elements of the infrastructure is driving a real-time view of the supply chain further. Other innovations such as drones and self-driving trucks will contribute to this real-time update and processing of massive amounts of data. In addition, tracking software for freight will provide even greater visibility to customers and enterprises.
Automated Planning Through Collaboration Between Humans and Machines
Artificial intelligence (AI)AI in shipping and logistics has grown exponentially in areas of planning. AI applications are used to alter transportation and route planning. According to Gartner, by 2030, AI augmentation, will surpass other forms of AI application and account for 44% of all AI-powered value. Predictive alerting is a prominent example of augmented intelligence. Smart alerts based on predictive analytics can be used by logistics professionals to carry out a variety of crucial tasks, such as estimating truck arrival times, anticipating equipment maintenance and product damage, and organizing for a spike in demand.
Hyper-local Supply Chains
Enterprise will downsize and bring their supply chains onshore over the course of the next few years, ushering in the next generation of hyper-local logistics. The two forces driving this transition are the need to stay agile and resilient to counter disruption and meet challenging customer demands for same-day delivery. The global same-day delivery market is estimated to reach a value of USD 20.36 billion by the year 2027. This will cultivate a hyper-local service to meet the growing demand.
Sustainability
An emphasis on sustainability will be the highlight of the shipping and logistics industry. Enhanced connectivity will enable enterprises to optimize their human as well as robotic resources.
Future Forward
The shipping and logistics industry has been forced to accelerate their digital adoption and increase their resilience due to the uncertainty in the past couple of years. Establishing real-time visibility, leveraging human-machine collaboration, adopting hyper-local logistics, and improving sustainability are all ways that businesses are preparing for the future.
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Article | June 27, 2020
At Schneider Electric, meeting our customers’ expectations is a key priority. As concern over COVID-19 (Novel Coronavirus) grows, we are monitoring developments to this situation globally, as well as following local health and government regulations, continually assessing and responding to changes.
Our Business Continuity Plan (BCP) has been tested and implemented in geographies impacted. This plan includes health and safety, supply chain, lifecycle management services, and IT infrastructure.
Schneider Electric operations meet the criteria of an essential critical infrastructure as defined by most governments. While we do not anticipate interruptions to our operations, local governments may require temporary containment measures. In these cases, we comply with local laws, and in most cases seek support from local authorities to maintain critical business operations as an essential business for our communities.
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