The COVID19 pandemic has hit the most efficient global supply chains hard, causing significant disruptions. Inflexible networks have left various organizations struggling to supply fast delivery, reduce costs, customize, and maintain sustainability despite inflexible networks.
Creating Flexible Supply Chains
The answer to the various problems is to create flexible supply chains. At this time, one-third of companies have stated that they believe their technology falls short in offering real-time insights needed to create operational strategies in an ever-changing marketplace. Upgrading and replacing the technology of supply chains every 12 to 15 years is falling short and causes things to become obsolete quickly. Also, there is no way to integrate innovative digital solutions rapidly enough to meet the ever-changing market landscape.
Using an Adaptive Approach
An adaptive approach is a way to overcome the hurdle. Cloud-based software applications can and do enhance the supply chain backbone. Combining artificial intelligence, advanced analytics, and machine learning is the pathway towards network optimization. Flexible technology will produce a resilient and dependable supply chain that will give them the necessary competitive edge to stay ahead of the competition.
Two things are necessary: core-tight architecture and Agile ways of functioning/working. Silos must be eliminated, which depend on separate functions, countries, and business units.
Sadly, currently, few companies are taking advantage of new technology. Many companies wonder which innovations will give them the biggest bang for the buck and achieve necessary IT solutions. The most successful approach is to reinvent supply chains to meet the changing market. To achieve this, obstacles must be removed.
Ongoing Obstacles
Core heavy legacy architecture is still an ongoing obstacle that hinders a company’s digital goals. There is also a true sense of escalating urgency because SAP and Oracle have discontinued support for their ERP systems. Going with core light technology architecture provides the edge needed for supply chain transformation. Shrink the ERP software core to a single source for multiple applications. This breaks the ERP into small modules (microservices), which will connect through application programming interfaces (APIs) with the ERP core.
Complement the ERP core with various business applications that are cloud-based such as software solutions like Confluent and Kafka. They work to assist in integration while offering adaptability. Explore companies such as SnapLogic, Boomi, and Mulesoft to learn more about integration.
Exchanging Data
The secure exchange of data between partners and customers is imperative to add value to the supply chain every step of the way – these include sourcing and the distribution of raw materials. Product tracing must take place further than the point of sale. This means implementing the tracing from creation to the point of sale with a complete exchange of data from internal and external systems.
An example is Surgere’s AutoSphere which is a cloud-based platform for automotive equipment manufacturers, suppliers, and transportation providers. The platform rapidly identifies and helps trace all assets from supply chains to track packing containers in real-time. The process optimizes the costs and service levels.
The Success of Adaptive Architecture in Supply Chains
Companies that have taken the extra step towards adaptive architecture can add features and functions quickly without damaging existing relationships. They can focus on data-driven decisions with artificial intelligence to optimize the process and create customer interactions in an authentic atmosphere. This process creates a solid foundation to form a control tower on existing systems. They can then focus on replacing outdated solutions that are easy and less expensive.
Overall, the leading companies that are pushing a flexible supply chain have a competitive edge.
