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Supply Chain Control Tower the Information Link for Operations Across the Live Enterprise

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Supply Chain Control Tower the Information Link for Operations Across the Live Enterprise Supply Chain Control Tower The information link for Operations across the Live Enterprise 02 Supply Chain Control Tower | The information link for Operations across the Live Enterprise The Live Enterprise – A paradigm shift for companies 04 The Supply Chain Control Tower – Our Point of View 05 Deloitte Project Insights from a Premium Automotive OEM 08 Digital Supply Chains – An Outlook 13 Contact 14 03 The Live Enterprise – A paradigm shift for companies In today’s world, companies have more supply chain data at their fingertips than ever before – vital information that helps to create real­time insights and improve operational performance. Achieving competitive advantage in their Having access to supply chain data is just actions and execution becomes possible the first step. The second step is to connect when we can link core functions and lever­ and structure the available information age greater volumes of more precise data to provide end­to­end transparency for planning purposes. and real­time visibility. The gateway to transparency is the Supply Chain Control Digitalization is no longer simply a buzz­ Tower, a central information cockpit that word – it has become our shared reality. integrates business processes across the By harnessing a range of (newly) available supply chain and supports rapid exception technologies to foster better, more management. By leveraging intelligent data dynamic management of daily business analytics, it is instrumental in creating a operations, companies are gradually responsive supply chain that uses retro­ evolving into Live Enterprises. The uniform spective data insights to create actionable data pools, made possible by the Internet insights in a sustainable way. of Things, promote in­depth analyses and machine learning in almost real­time. The result is a connected and transparent sup­ ply chain with agile decision­making and faster execution – a new form of corporate governance. For decades, companies have based their decisions on historical data. Today’s Live Enterprises with integrated real­time data are making a paradigm shift towards a sys­ tem that allows them to “manage the future based on the present”! 04 Supply Chain Control Tower | The information link for Operations across the Live Enterprise The Supply Chain Control Tower – Our Point of View The Supply Chain Control Tower (SCCT) Key functionalities include: is the “nerve center” of a Live Enterprise, • Real­time and end­to­end visibility of which orchestrates and integrates supply chains decision­making across a company’s • Insight and root cause identification operational capabilities. Typically, the SCCT • Predictive alerts and recommendations is operated by a small cross­functional • Response agility as well as team, which is empowered to make both • Enhanced performance management tactical and short­term decisions. By applying advanced analytics and feedback loops, it supports continuous improvement of supply chain planning and execution. Overall, the SCCT leverages structured and unstructured data across functions and value chain partners. Fig. 1 – Supply Chain Control Tower enabling visibility across core operational functions lannin Sourin anuaturin rer oiti anaeent itriution 05 The SCCT supports holistic decision­mak­ learning. The SCCT increases response data gathering. In the data integration and ing based on end­to­end visibility in all agility to internal or external changes on data storage layer, integrated nodes form a core operational functions such as product both the tactical and the operational level. single point of connectivity to the extended development, planning, sourcing, manu­ Overall, it leads to enhanced performance supply chain network. The fourth layer is facturing, order management as well as management and improved KPIs. for data processing and workflow execu­ logistics and distribution. Enhanced visibil­ tion. All of the required intelligent business ity also promotes efficiency measures and A fundamental prerequisite for every Sup­ logic must be available in this layer. enables effective contract management ply Chain Control Tower is a well­designed with value chain partners. By making infor­ digital core that links several IoT technolo­ On top of the digital core, the Supply Chain mation transparent across all functional gies to power the SCCT with near real­time Control Tower adds another three layers. silos, we can identify root causes, trace data. In general, the digital core comprises The visibility layer aggregates data for end­ problems to their origins and ultimately four layers. to­end oversight and enables prioritized enable self­driving supply chains. actions through visualizations. These The lowest level in the digital core includes visualizations foster business process and To create actionable forecasts, the SCCT IT systems such as cloud platform or enter­ scenario analyses to support decision­mak­ deploys scenario­based modelling and prise resource planning systems, business ing at the operational and the tactical analytics. It also creates predictive alerts to applications and IoT sensors. Network data level. The insights and strategy level relies recommend action for potential events that is synchronized on an ongoing basis, bring­ on forecasting and advanced analytics might occur in the near future using histor­ ing together the data of core systems, apps to derive business insights that facilitate ical and real­time data as well as machine and sensors and allowing for synchronized strategic decision­making. Fig. 2 – Different layers of a Supply Chain Control Tower Control Tower nsihts an strate ecision spport isiilit ounation Data processing and workflows ata interation an storae etork ata snchronisation ore sstems apps an sensors 06 Supply Chain Control Tower | The information link for Operations across the Live Enterprise Fig. 3 – Different layers of a Supply Chain Control Tower wn Copany ternal Control Supply Chain Control Tower Tower Control iiility Conitie ue ae n ean Supply lannin inanial nteration onoi Supply lannin ean lannin Senario Lon meim Lon meim anaeent ean shortterm shortterm Senin ewent lan Soial eia S IBP lannin eution roution MRP DRP Sheulin Supplier Supplier anuaturin arehoue Tranport rer etwor urhaetoay 3PLs eution eution eution anaeent Collao- eute ration Core peration inane Cot Controllin Channel artner Capability Connections But how do you integrate the Supply Chain derive predictions. Where shortages are Control Tower into the typical IT system identified for certain production lines, the landscape of an industrial company? The SCCT can generate predictive alerts, e.g. SCCT resides on top of planning and execu­ to reschedule production orders to meet tion systems and adds end­to­end control the overall demand. As the SCCT connects capability as shown in figure 3. Having with other enterprises and external data access to real­time execution data from the sources, response agility within the value core ERP system and other data sources, chain is even higher than in the ecosystem the SCCT creates transparency across all when it comes to reacting to sudden core operational functions within one dash­ changes. We can therefore better and board application. more frequently adapt the value chains to customer demand and service level expec­ Besides providing real­time information, tations, ultimately reducing unit costs and the SCCT can also enrich the actual produc­ increasing profitability. tion output within the planning horizon and 07 Deloitte Project Insights from a Premium Automotive OEM Our Client For example, there are more than 1,000 erogeneous, with several systems in place A manufacturer of premium passenger suppliers delivering approx. 30 million to support logistics processes from ERP and cars. parts from all over the world to our client’s EDI to yard management systems. In order locations every day. Several vehicle and to get an overview of the status of a single The Challenge CKD1­plants as well as a handful of service material, the user had to log into several IT As production capacities continue to providers assemble thousands of cars, applications, which required a lot of manual expand and the supplier base grows as a adding up to more than two million vehicles effort and led to stock inaccuracies. Even result, our client saw its regional and inter­ per year. The logistics function manages suppliers were forced to use several differ­ continental supply chain network become about 7 billion material movements annu­ ent systems to schedule their deliveries. more complex and its management activi­ ally. In this complex environment, our client ties more intense. This led to major chal­ needs innovative IT solutions to ensure effi­ The client was keen to solve those issues lenges in terms of material supply and cient supply of all its production facilities. and announced that the key goals of their logistics efficiency within the overall net­ 2020 logistics strategy would be supply work of vehicle plants. The client’s existing IT system landscape chain transparency, real­time visibility and could be characterized as complex and het­ connectivity. Fig. 4 – Global Supply Chain Network of the OEM – Illustrative 08 1 Completely knocked­down vehicles Supply Chain Control Tower | The information link for Operations across the Live Enterprise Fig. 5 – The Inbound Dashboard of the Supply Chain Control Tower – Illustrative The Vision of the Project For example, if a delivery were significantly The overall objective was to implement an delayed
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