Logistics in common is said to be the detailed organization and the implementation of a complex operation. Logistics is the management of delivering things between the point of origin and the point of consumption in order to meet requirements of customers or corporate, when it is taken in business point of view. The logistic includes tangible items like food, materials, animals, equipment and liquids; as well as conceptual items such as time & information. Logistics basically involves with production & packaging, transportation & warehousing, material handling & integration of information flow, also with inventory & security.
Material Supply chain management systems
Materials management deals with Planning & Design for movement of necessary materials or it deals with the tangible components of a supply-chain. Material Management is the only function responsible for the coordination, planning, sourcing, purchasing, moving, storing & controlling of materials in an optimum way to provide a fixed service to the customer at a minimum cost before handed.
The things to consider by the Modern Demand-Driven supply chain management systems
Expanding Digitization and automated Operations seamlessly
Even though hardware systems that normalize data are common, demand driven modern supply chains will seek to go lighter, increase flexibility, most importantly scalable logistic software systems that can normalize data. This makes it accessible & supportive to effective transformation of the whole-data into performance enabled information. The use of desktops for system inter-communications will diminish, being increasingly replaced by smart phones which allow mobility and easy to use. Chat-bots will start popping up in daily operations and planning.
Supply Chain Collaboration and Visibility
Visibility in supply chain is evidently becoming an area of focus. The Visibility adoption is no longer a best option for supply chains. SCV acquisition rates are rising across industries with manufacturing supply chains leading the way at the rate of almost 20%. Visibility which initiates will be closely aligned with business drivers and risk management resulting focus and realizing remarkable initial returns.
Smart-Data, Smart-Decisions – Managing Big and Medium Data
BI-Business Intelligence tools is around us for a while; whatsoever, supply chain collaborators are still forced to rely on awkward IT resources to access any required report. Supply chains which are Modern Demand-Driven require easy-to-use tools that empower everyone in the organization to carry their own analysis & create their own reports and dashboards with data gathered from multiple sources.
Automating Manual Processes
Digitization of supply chain definitely automates the tedious task of data collection, accumulation & sharing across systems & machines. However, a shocking number of supply chains still use spread sheets for their core operations, planning, and inventory management. The Modern Demand- Driven supply- chains should definetiely automate these manual activities quickly and earn even-more quicker returns on your investments on technology.
Extended multi-Enterprise wide Visibility
Visibility at every level is getting increasingly critical for innovation, contentious value, sync-activities, tracing & many more functions. As customer and customization demands growth, an increase in number of Modern Demand-Driven supply chains will depend on higher visibility at the stream of value, supply chain and elaborate enterprise levels to drive efficiently. Command centers will start at local and regional levels and global consolidation across the complete Eco-systems will start maturing in-order to deliver extended multi- enterprise- level visibility. In the world of ‘Sharing Economy’ this is a must have asset.
Real Time Communication Processes
A unique version of truth gains the most consistent, lean, and waste free supply chain. An option that can permit this objective is a visual factory information system that can connect to any data source and display virtually graphical configuration to the individual user, work center, plant or multi-enterprise level. Order status, system alerts, stock buffers, KPIs, and other details can be made accessible to everyone – anytime, from anywhere & provide a single source of real-time information. You will witness this dream coming true, although it may take years to surround the majority of the supply chains. The benefits gained will drive investments to further levels in this area. This cycle is likely to be initiated soon.
Compliance and Traceability
In this Modern Demand Driven supply chains need to follow a tight check on the statutory commitment that track the process following user serialization. Such work flow systems need to be highly configured to adjust the mandated requirements change & be digitized to easily pull data from various other systems, which includes historical, asset management, and inventory management. Non-compliance in this scenario is a risk that no business can afford; hence, automation, which is currently low in this area, will make an entry in the near future.
Most Modern Demand-Driven supply chains are changing their focus towards triable metrics grounded in lean, constraints management, and Six Sigma principles. Prosecutable metrics are operational indicators that can be acted on to enhance work flow, throw out, and finally achieve a perfect delivery.
Solutions vs. Systems
As most technology options become common, more supply chains seem to be competing between the value of investing in best breeded solutions that meets specific functional requirements & the value of large, multi-functional systems (ERPs). Solution-based applications will push out the large ERP systems, and integrated role-based solutions will be the customers’ preference in the near future.
Cloud Technology and SaaS Delivery
Modern Demand Driven supply chains are looking very keenly at the cloud to extend, or add value to, the existing legacy system investments. Rather than ripping and replacing large systems, supply chains will enlarge them with highly flexible, scalable, and inter-operable cloud- enabled solutions that can be configured to work exactly as desired – without alian customization fees. These hybrid cloud environments will be a popular option to validate the value proposition of cloud computing.
Supply chain stakeholders definitely will have an exciting coming years to look forward to. But with the long list of transformations awaiting the landscape from bots implementation to data-enabled visibility and actionable metrics, the Eco-system needs a trustworthy technology partner with proven experience in these areas to help them make a seamless transition from good to the best. Time has almost run out – so grab your prized tech partner who will help you stay ahead of these trends in the coming year.