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Tag: digital supply chain
Production processes can be severely disrupted when it is only discovered on the scheduled delivery date that the ordered production material will not arrive on time. Since this material often travels through long and complex supply chains consisting of many planning, ordering, production, and delivery processes, bottlenecks are not uncommon in practice. The problem is exacerbated by the fact that modern manufacturing plants often have very low inventory levels, meaning that materials are delivered just prior to production.It is therefore particularly important that production and material planners are informed as early as possible of any potential delivery problems. Only then can timely action be taken, such as ordering a replacement or rescheduling production.Shortly before delivery, the goods are in transit. During this time, the carrier closely tracks and monitors the status of the shipment. However, modern transportation times can be very short, and notification of delivery delays often comes too late to take countermeasures.Insight into supplier productionThe solution is to identify discrepancies in production planning and production at the supplier long before transportation. SupplyOn automatically collects a wide range of standardized production data from the supplier. This makes it possible to track which production quantities are in the planning phase and which are actually in production. The transmitted data also makes it possible to monitor production progress and determine which specific production step the order is in. This provides visibility down to the sub-assemblies and raw materials used.The power of our production-to-supply solution is that quantities in production can be mapped directly to buyer requirements. This provides immediate visibility into which requirements are already scheduled with the supplier or are already in production. By constantly monitoring the progress of work, the AI-powered system automatically learns normal production lead times and also recognizes when current production is slower than usual.Using AI to spot variances before they become a problemA complex, continuously learning predictive model based on historical monitoring data calculates an estimated completion date, taking into account recently observed production times and current work progress. This makes it possible to estimate, either during production or before production begins, whether the manufactured goods will be ready for shipment and whether the desired delivery date can be met.The highly AI-driven system generates early warnings for various situations:The planned production quantity is too lowThe planned production start is too lateThe quantity in production is insufficient to meet the upcoming demandThe production start is too late or will be delayed to meet the delivery dateBased on the forecast of the current production time, it is also possible to determine when the production for the upcoming demand has to start in order to avoid delivery delays. The system also records the difference between the quantity produced and the quantity delivered. This can be used to determine the percentage of scrap and to calculate a recommended production quantity in addition to the recommended start of production.In addition to clear graphical and tabular displays, the predicted delivery date, recommended production start and recommended production quantity can be sent directly to the customer's ERP system. This means that the AI system's calculations are available to the customer at the line item level.Optimized planning at both ends of the supply chainBy combining demand and production data and performing intelligent calculations, the system provides valuable insights to both the purchasing and supply sides, enabling both to improve their planning processes. This increases the likelihood that production will start on time and in sufficient quantity.Production delays are automatically detected and alerts are generated, providing insight into exactly where production is stuck. This allows for timely and targeted adjustments
Sales and operations planning (S&OP) has come a long way since its origins in the 1970s as a production planning tool. Today, as supply chain technology advances, S&OP is evolving into a more integrated approach. By expanding into areas like product management, demand planning, capacity management, finance, and corporate strategy, S&OP has transformed into what we now call Integrated Business Planning, or IBP. IBP provides a strategic view of the supply chain that integrates business planning and forecasting with corporate goals in a single model, extending the previous S&OP that was limited to individual silos.As with all planning tools, the results achieved with IBP are highly dependent on the quality of the data. The use of digital technologies and data analytics is critical to better predict demand and optimize production planning. Modern demand forecasting systems help companies respond more flexibly to market changes. Digital twins and AI-based tools are used to simulate complex supply chains and predict potential disruptions. GenAI models are helpful for the big picture, while specialized AI models and machine learning (ML) provide more accurate results than previous technologies.However, all analytics are based on data—and the more accurate and comprehensive the data, the better the planning results. So, if you are wondering how you can improve your supply chain planning system to create more value for your customers and more profitability for your business, take a step back and ask yourself the following questions:What do individual leaders in the organization want to achieve?What does their data tell them?What is the quality of the data?What conclusions can be drawn from the analysis results?In the area of data and data quality, SupplyOn offers two tools that can be used to improve data quality: Capacity Management and Traceability.In the case of capacity management, the available capacities at the supplier are queried in various time frames on the basis of the customer's delivery call-off data. Providing qualified capacity data to IBP enables more accurate planning. Combined with data from internal systems, this results in more accurate demand planning—and a very detailed picture of supply chain reliability.SupplyOn's traceability system also requests data such as quality information, which, when integrated into the IBP, provides a more accurate plan of availability and possible quality deficits. This allows the plan to be adjusted or countermeasures to be taken in good time.A number of customers have already taken this into account when considering the introduction of an IBP system and have implemented a connection to SupplyOn with very positive results. We would be happy to provide you with more detailed information on the integration and benefits of SupplyOn solutions in your planning environment.
Unfortunately, cybercriminals continue to gain access to corporate IT infrastructure, encrypt data, and then demand large sums of money to "decrypt" it. The impact on affected companies is devastating! It often takes several months before they can operate as they did before the attack.Even if your company has planned for this eventuality: What if one of your key suppliers is affected? How long can you produce without them? How can you continue to manage the relationship if EDI is down and email is out?True to the motto "better safe than sorry", we at SupplyOn offer our customers the creation of an emergency plan for such cases - before the disaster strikes. The aim of the plan is to implement and support an orderly and monitored cooperation with the affected companies within 24 hours. All order types such as JIT/JIS, orders, KANBAN or VMI, etc. can be integrated.In the first step, our experts work with the client to develop a customized contingency plan and define the necessary adjustments and actions. The second step is to define the preparations for the emergency. Once all the necessary actions have been defined, the plans are communicated - in paper form, of course - along with all the key contact information. This ensures that the right people in your organization are notified in the event of an emergency, for example, via their personal cell phones.In the event of an emergency, you and the supplier concerned initiate immediate measures and determine the next steps together with SupplyOn. This includes the immediate registration and activation of the supplier on the SupplyOn platform as well as the transfer of open and current orders and delivery schedules to the Supply Chain Collaboration solution. Together with our consultants, the first steps with the supplier are then carried out and monitored. The support provided by SupplyOn gives the suppliers concerned peace of mind and avoids unnecessary delays and queries to Customer Support.The package offered by SupplyOn supports your suppliers in the first steps out of the chaos and on the way to an orderly production process. In addition, the SupplyOn platform prevents the malware from spreading to your company and ensures that business can continue to be conducted electronically as before.Got curious? Then get in touch with us below.
With 100% of processes digitized and automated, a supply chain is a dream for every supply chain manager and the aim of many companies for many years. But why do so few reach the final goal of 100%? In the second episode of Inside Supply Chain, we get to the bottom of this question and also provide the solution - the 3+1 approach.On the home straight: With 80% so close and yet so far awayTaking a look at the example of a global company: Millions of transactions are processed annually in over 60 countries and in 20 different languages. As a result, digitization poses various challenges.Rare contact: The greatest difficulty lies in including business partners in the digital processes with whom only sporadic contact. According to the Pareto principle, these make up around 20% in most companies.Security gaps and the use of different communication channels: Due to the absence of regular exchange, communication often happens via channels such as telephone and e-mail. Not only is this inefficient, but security aspects also play a central role here. Especially in times of data and transactions protection being a top priority.Incorrect master data: If there is no regular contact, contact data is often incorrect or even missing - from changing contact persons to structural changes in the company. There are many reasons for insufficient data quality with infrequently contacted business partners.Increasing demand for compliance and fulfilling stricter ESG regulations: A 100% digital and automated process appears to be essential to ensure not only the efficiency but also the security of the supply chains.Achieving success with the 3+1 approachThe digitization of supply chain processes require not only technical solutions, but also a clear methodological structure. In this context, SupplyOn applies the 3+1 principles, which have proven to be a key strategy for an effective and secure conversion of the previously non-digitalized 20% of the supply chain processes.Principle 1: The transactional approachThe first principle, the transactional approach, extends further than the pure technical use and focuses on the targeted establishment of connections. Here any communication connection is only activated when essential for the process. This means a targeted reduction in unnecessary interfaces. It not only creates efficiency, but also minimizes potential vulnerabilities for security risks.Principle 2: Individual responsibilityThe second principle emphasizes individual accountability in gathering information. Instead of centralized data collection, the responsibility for researching and providing the required information lies with the respective parties. This not only promotes transparency, but also efficiency in fact-finding and reduces redundancies.Principle 3: Data clearing after each transactionThe third principle recommends consistent data clearing after completed transactions. Deleting contact data right after the transaction, ensures that only current and valid data is used for future business operations. This step is not only relevant from a data protection perspective, but also contributes to the quality of digital supply chain processes.The "Plus 1" principle: Monitoring and continuous improvementThe final step, usage monitoring and continuous improvement, closes the circle. It enables the analysis of past transactions, the identification of patterns and the continuous development of the system. By systematically evaluating the processes, weaknesses can be identified, security mechanisms optimized, and efficiency further increased. This iterative approach ensures that digital supply chain optimization is not seen as a singular measure but is continuously adapted to changing requirements.More than just closing a gapThe goal of these measures is not only to close the 20% gap, but also to provide incentives for users to further adopt digitization tools.This initiative also represents a pioneering step towards a digitally optimized supply chain structure in the context of global business activities. It demonstrates that the complete digitization of supply chains are not just steps towards increasing efficiency but also essential for closing security gaps. A consistent implementation of the 3+1 design principles focuses on efficiency, sustainability and security. It also creates a motivating incentive for partners and users to actively participate in this digital transformation.We are convinced that achieving 100% digitization brings challenges, but it is worth facing up to them: The result is a strengthening of competitiveness through increased efficiency - and thus securing the future viability of our customers.
Like most people this year, I had every intention of writing about the New Year in January, but honestly, the busyness of last year never stopped; it carried over not only from last year, but from 2022, through the holidays, and into this year. Now I feel like I blinked and landed in February. It seems only fitting to write about this new year during the Lunar New Year, especially since this is the Year of the Dragon. Dragons are a revered symbol of power and thought. It is considered the luckiest sign in the Chinese Zodiac. If you know me, then you know my pension for dragons. This year, the mythical creature is paired with the element of wood, which is said to bring good fortune, action and growth. What better way to get started on my old 2020 goals that have reemerged from lockdown and new goals than to blaze a new trail on the heels of a fierce dragon? After the pandemic crisis came to a screeching halt, organizations had to scramble and implement stopgap measures just to get by. When we emerged from the pandemic in 2021, it was paralyzing, with an uncertain world around us while we figured out the new normal. In 2022, organizations began to share more about the challenges they were facing and put effort into understanding new ideas and solutions that could change their current state. In 2023, I saw organizations get more serious about change, especially around digital transformation strategies and initiatives. Now, finally, 2024 is the year when organizations will be driven to change.10 success factors for digital supply chain transformationHere are my mission-critical, key factors for successful supply chain digital transformation in 2024 and beyond:True leadership: Digital transformation is more than a one-time mandate from headquarters; it is a true commitment. It requires an ongoing effort from a C-level leader to not only educate and drive this change, but also to bring their best street fighting skills and rocket science thinking cap to ultimately make the change happen.Strong team: Assemble the best teams that get it and share the vision, passion, and drive to work together to understand and document the current situation, research solutions, build a business case, plan deployment, lead internal and external change management, launch, and work to continually improve processes and the solution.Partnership: Digital transformation is an investment in every sense of the word. The right supply chain collaboration tool is a complex solution that connects data from multiple data points. It requires analysis, planning, design, mapping, configuration, testing, and training. To make this transformation a success, it's critical to choose a solution provider that can guide, educate, support, and share your vision and mission. One that will be with you before, during and after.Be open: With any type of change, it's critical to be open to different ideas, processes, and solutions. The digital world moves at lightning speed and has changed for the better. It can be hard not to get stuck in the past with old technology that maybe didn't work well and outdated concepts that are no longer relevant. Step back, explore, and look at the big picture to find a new way.Understand ROI: Return in Investment (ROI) is both tangible and intangible. It will also vary from one organization to the next. There is no quick ROI answer for a solution; it's going to take some work to build it so it's real and measurable. For the tangible part, the starting point must come from existing data and be aligned with financial goals. For example, simple goals might be to reduce inventory or emergency freight costs. This is easy enough to do the math with current costs and then figure out the reduction targets. The intangible ROI can be much harder to measure, but the benefits can be more impactful. For example, reducing manual effort could result in a happier team that can be proactive rather than reactive, which in turn could result in better planning, optimized build schedules, less overtime, better pricing, less downtime, more on-time deliveries, and some very surprising cost savings. For the intangible ROI, talk to your team and create an estimate. Then align that with some of their goals.Budget: Digital transformation is an investment and requires money to make it happen. A realistic budget with a twenty percent contingency is optimal. It's also critical to look beyond the annual fee for the solution and understand that there are not only external implementation costs, but also internal resources required to implement new solutions, such as a one-to-one ratio of days from your solution provider. It's also important to know what's really included in the package beyond the bottom line price tag. Also, do not forget to budget for change management if you want the project to be successful.Change Management: Implementing a new solution without a change management strategy is like buying a car without wheels and expecting it to go anywhere. Change management requires a solid plan that includes clear goals and messaging, an internal and external portal with information, training and progress. It requires a strong kick-off presentation from leadership and an ongoing, scalable dialogue both internally and externally with stakeholders.The right solution: Finding the right solution and tools takes some time and research. Make sure it meets your current needs, but is also scalable for your future. Configurable is definitely better than custom, as the latter can turn into something that cannot be updated later. Continual enhancements and updates are also a plus to avoid painful and costly migrations in the future. Make sure it works with any ERP and 3rd party solution. It should have plenty of support options. Most importantly, it should be easy to use—after all, it's no good if it's not used.Realistic goals: While there is an urgency to digital transformation, the process takes time and internal teams are working on this mission in addition to their full-time jobs. Depending on the day-to-day business, the research phase alone can have many starts and stops. Planning, budgets, internal approvals, legal, alignment, and preparation can also be delayed. Faster isn't better if the solution isn't right, the implementation isn't done right, and the whole project lacks change management.Solid roadmap: It's easy to get excited and geeked out about digital transformation. Don't skip the planning stages. Create a solid roadmap for your journey, and know that it's okay to make mid-course corrections if necessary. Be flexible, open and mindful.2024! Ready. Set. Go in like a dragon.
From 2018 to 2021, the value of production in the Leonardo-led supply chain grew by 14 percent, from 21.4 to 24.4 billion euros. How was this possible? Leonardo is a large defense and aerospace company, a sector that in Italy includes other major players such as Thales Alenia Space, Avio Aereo and Macaer. The company led by Roberto Cingolani, just in 2018 initiated the important Leap (Leonardo Empowering Advanced Partnerships) program with the dual purpose of creating a digitally integrated ecosystem and promoting advancement in terms of innovation and resilience of strategic suppliers. Quality, cost, time, and technology utilization targets were defined. Then, Leap evolved: sustainability targets were added, with Leap - Partnership for Sustainability. But all this would have been difficult to achieve without AirSupply.But what is AirSupply? It is a powerful tool for purchasing departments (provided by SupplyOn, a company with headquarters in Hallbergmoos, near Munich, but also with offices in China and the United States). It is a shared industrial Cloud platform that optimizes more than just the working relationship between the manufacturer and suppliers, but also communication with suppliers in the downstream supply chain. It enables suppliers not only to connect and receive purchase orders; but also to change, within certain limits, delivery times and quantities. Above all, the platform is characterized by high visibility: suppliers can see if there is a decrease in demand from Leonardo's customers, and based on that they can adjust their raw material purchases. If, on the other hand, demand is robust, they can make longer-term purchases, which result in financial savings. This has increased the resilience of the supply chain, and allowed Leonardo to shorten lead times.87 percent of the 4,000 suppliers using the platform are SMEs. For example, Lombardy-based Logic (active in the development of avionics and electromechanical subsystems and components); Marche-based Civitanavi Systems (which makes inertial navigation and stabilization systems); Apulia-based Manta Group (which produces aerostructures for both fixed and rotary wings); and Campania-based Ala (active in the distribution and supply of advanced logistics services). Leap's next step? That of working on CO2 emissions. The context is still the Partnership for Sustainability, but the idea is to reduce the environmental impact of companies. That is the challenge for the next few years, and it concerns, of course, the whole supply chain. Progress toward the targets will be measured scientifically.Giacinto Carullo, Chief Procurement & Supply Chain Officer at Leonardo, talks about all this.What information systems do you use for dealing with your supplier network? What technologies?We use the AirSupply system, a powerful procurement management tool used by large Groups such as Airbus, Thales, Safran, Dassault, Liebherr, Premium Aerotech and Daher. It was to harmonize and standardize collaboration with suppliers to have a common digital platform and procurement process within the group. AirSupply enables high traceability, responsiveness and inventory control in our supply chain. First, it was piloted, for indirect spending, by Leonardo Global Solutions; then, for direct procurement, by the Aircraft and Aerostructures divisions; and finally, by the Helicopters and Electronics divisions. Essentially, it is a Cloud portal: suppliers connect and receive purchase orders. Most importantly, they have visibility into confirmed orders, with the ability to modify them.What exactly does the ability to change confirmed orders mean? Within what time frame can they do so and to what extent?The time frame depends on the type of supply, e.g. for products within the 12-month lead time, typically the first two to three are "frozen," followed by three to six "flexible" months, during which, in agreement with Leonardo logistics, it is possible to change the quantity - by 10%, 15% - and the delivery date. There are then several additional "forecast" months, in which the supplier sees commitment, but this does not necessarily result in an order.And who benefits from not translating a pledge into an order?In the AirSupply system, when there is a decrease in our customers' demand for Leonardo's products, our suppliers see it. As a result, they can make their own calculations and, for example, buy a smaller amount of raw materials that they need to make their components. Conversely, this long-term visibility allows suppliers – when they know demand is intense – to make long-term purchases, which generally saves them money. All of this has the dual effect of increasing supply chain resilience, especially in times of stress; and allowing lead times to be shortened.Does this mean that suppliers must adopt AirSupply?The system is a KPI in our Industrial Sustainability Roadmap. In short, AirSupply adoption is a key driver for supply chain digitization and high-level procurement. Our goal is to use the portal for more than 80 percent of supplier transactions. More than 5 thousand suppliers are currently using it, including more than a thousand in "full" digital integration mode. It means that the most important suppliers are already operating on the platform, which helps to create a digitally integrated and synchronized supply chain ecosystem.How does this fit in with Leap - Leonardo Empowering Advanced Partnerships - a program launched in 2018?Leap is a program to transform and accelerate the development of the supply chain. It is designed as a constantly evolving model. The initial point, but also the "key" point, is that it is intended to increase the level of partnership. The excellent supplier becomes a long-term, "stable" partner, and consequently gains visibility in the system, and enjoying the certainty of the relationship can invest in its own business and growth (including technological growth) contributing to its competitiveness, ours and that of all the other players involved. Partners are called upon to increase quality and must be excellent in operations. This is first and foremost in our interest. Our CEO, Alessandro Profumo, has repeatedly stressed this; Leonardo cannot be sustainable and competitive if its supply chain is not: the quality and safety of the final products depend on it, as do the flexibility and ability of the company's business model to adapt to technological challenges. What we offer our suppliers is a long-term perspective of cooperation, putting them in the best conditions to be able to plan and pursue their investments over the long term, thus also supporting their ability to compete independently in the market. Supplies to meet the fulfillment of our contracts can in fact last for as long as 20 years; it is good for the supplier to remain in the market for an equivalent period, to provide the components and services essential to us and our customers. AirSupply strengthens the partnership and makes it more streamlined and secure. Moreover, in 2021 Leap underwent a major upgrade.What update have you made to Leap in 2021?The program has evolved into Leap Partnership for Sustainability. The dimensions of sustainability have been added to those of quality and technology. Now partners are required to address security, health & safety, environmental and social responsibility, risk management. And they must share their strategies in this regard. In short, in 2021 we started building our ideal partner. Starting with an assessment.Did you carry out an assessment in 2021?Yes. The assessment involved 500 suppliers, the most important ones, and covered something like 200 KPIs. Already the fact that they were confronted with all these dimensions was important, for them, because it showed them the path to take by involving the staff. However, after "measuring" the degree of maturity of the partners on the dual quality-sustainability front, we began the maieutic approach.What does the maieutic approach consist of?We guided the 500 partners along the growth path, helping them to achieve their goals. With necessarily different actions from each other, based on the weaknesses of the partners manifested during the assessment. Some showed greater difficulties on processes, some on other aspects. In any case, we outlined a plan with two main objectives.What are the two main goals of your supply chain growth strategy?First, that of ensuring the strength and sustainability of the supply chain. Precisely because suppliers are called upon to provide us with services and components for periods of up to 20 years, they must be able to continuously improve their performance – the bar of objectives is continually being raised. Second, that of creating a significant number of Tier-1s (first-tier suppliers; typically, they know the strategies of the OEMs, know what technologies the OEMs are investing in, and are aware of their projects. In some cases, based on this information, they direct the whole supply policy and regulate its flows – note of the editor) and Tier-2 (basically specialists, who develop individual components on the basis of know-how established over the years – note of the editor) of international dimensions. Moreover, we are giving up supplier exclusivity. The fact that they have a strong partnership with us does not mean that they cannot or should not work with competitors. If they are good for us, they will be good for Airbus, for example. And in the marketplace they become more sound, more competitive and more resilient, helping to build a positive-sum game. All this merely increases the sustainability of our supply chain.What is the next step?The next step is to work on CO2 emissions. The context is still the Partnership for Sustainability, but the idea is to reduce the environmental impact of companies. That is the challenge for the next few years, and it affects, of course, the whole supply chain. Progress toward the targets will be measured scientifically, because Leonardo is part of Sbti (Science Based Targets initiative), a global initiative established in 2015 (by a collaboration between several organizations, such as the Carbon Disclosure Project, the United Nations Global Compact, the World Resources Institute and the World Wide Fund for Nature – note of the editor) to help companies set emission reduction targets in line with climate science and the goals of the Paris Agreement. The metrics used are very precise. The goal, for Leonardo, is a 40 percent drop in emissions by 2030.Does your supply chain generate a lot of emissions?Actually, the largest share of emissions is certainly downstream, among those who use, for example, our helicopters or airplanes. We have few energy-intensive factories; when it comes to the aerospace industry, this is equivalent to 2 percent of global emissions – but 1.5 percent is due to those who do aviation. So almost all of it.Among other partnership activities, you help your suppliers from a financial perspective. How does that work?Here, the "how" is very important, because it makes a difference. Results are generated or not generated because of the "how." Specifically, we have made agreements with seven banking groups to do supply chain financing. For example, we as Leonardo enjoy special factoring conditions (the assignment of credit – note of the editor): it was agreed that they should be extended to our suppliers. These moreover can get advances not only on invoices, but also on Leonardo's orders. For them it is a great help: since the lead time lasts 12 months, they must expose themselves financially; if they can get financing from banks on good terms, it is easier for them.And why did the banks agree to it?Because banks are familiar with our supplier program, and as a result they think that in the case of our suppliers we see a decrease in credit risk.There were 67 key suppliers of Leonardo, with a turnover of 1.3 billion euros and a total of 7,500 employees, who participated in the Elite-Leonardo Lounge program developed with Elite di Borsa Italiana. What did it consist of?In a development path aimed at entrepreneurs and top managers of supplier companies to accelerate their growth by facilitating access to capital, network, and key skills. Through it, companies were able to create a long-term strategic business plan and shared it with Leonardo. A key step: by overlaying our plan with theirs, we were able to assess whether the suppliers were heading in the same direction as us, especially in terms of technological development. What's more, about 50 M&A transactions have occurred in our supply chain; 70 percent of these involve companies that have gone through the Elite route. It means that they felt the need to strengthen themselves in terms of size, and this is good for us; it is also good for them from the point of view of competitiveness.What are the current obstacles for Leonardo's supply chain?For Italian suppliers, the problem is to be able to be competitive in the European context. As for the average size, these are small companies; as for the level of digitalization, it is good in relation to the average Italian company, but it is not yet at the level of the European average. In short, these companies need to be able to make a major leap forward. For this, a great product is not enough: you need planning, management, investment, long-term vision. And you must work on all these dimensions at the same time. It is not easy, but it is certainly not impossible. This interview by Marco de' Francesco has been published in Italian in the online magazine Industria Italiana: https://www.industriaitaliana.it/leap-leonardo-airsupply/
Managing both automotive and aerospace, as well as complex manufacturing, has kept me busy attending back-to-back conferences in 2023. It's only fitting to title my latest blog post with a nod to an old advertising colleague and friend, Steve O'Connor, who used to host an annual "Ski Like You Drive" event in Wisconsin (the Vail of the Midwest, sort of). It's fascinating to observe the strong connection between these industries, which share many suppliers. Automotive manufacturing, with its faster production and shorter lead times, is often at the forefront of transportation technology. Now, as Jetson's-style flying cars become a reality, they are becoming even more intertwined.As we approach the mid-year mark, it's clear that 2023 has flown by, driven not only by the series of conferences in the aerospace and automotive sectors but also by the surge of inquiries about our supply chain solutions. Now more than ever, organizations are seriously engaged in digital transformation efforts, with tight deadlines to meet. One customer aptly described the current situation as a "two-year backlog." After the uncertainty caused by the global pandemic, we face the same old challenges, along with new ones and ongoing unknown risks.A hectic yet exciting year so far: conference insightsThe Stellantis Town Hall Meeting kicked off my conference circuit. Hosted by MEMA (Original Equipment Suppliers) in the Detroit area, this conference provided an overview of Stellantis' future vision and strategies. It was a half-day session followed by an opportunity to meet the team and network with industry professionals.Next up was the PNAA’s Annual Aerospace Conference, called Advance 2023. This well-attended conference brought together hundreds of aerospace professionals from over 350 companies at the Lynwood Convention Center in Seattle. It was a great occasion to reconnect with old friends and explore the current and future state of aerospace, including technology advancements and supply chain challenges such as shortages, more visibility, transparency, and our ecosystem. Technology and tools were top of the list of subjects, and the message was clear for need for partners in the supply chain. I managed to contain myself and not stand up in the audience, wave my arms, and yell, "Hello, come talk to me about SupplyOn". Global discussions were in play, with a close eye on our overseas counterparts.Circling back to the East, I visited the South Carolina Automotive Conference in Greenville, South Carolina. The hot topic here was sustainability, an increasingly crucial aspect of the automotive industry. It was an excellent opportunity to learn from industry pioneers and explore the latest advances in sustainable practices. The conference also featured a display of Clemson University's autonomous vehicle, which showcased cutting-edge 3D printing technology.In between the conferences, meetings, workshops, and proposals we held our Annual SupplyOn North American Summit in South Carolina, near our North American headquarters. The summit was led by our Global CEO, Markus Quicken, and our North American CEO, Derek Baggerly. We concluded our summit with a tour of the BMW factory, complete with robots, exoskeletons, and hydrogen-fueled golf carts. This summit also kicked off customer and shareholder visits to North America. What’s unique and special about these visits is the engagement with our customers and the inclusion of their feedback into our technology roadmap. This is one of the key reasons I call SupplyOn the “Goldilocks” company: just right the right size to support customers like BMW and Airbus but also the right size to be agile, flexible, and accessible in order to partner genuinely.Next up was the Aerospace Industries Association (AIA) SMC Conference, hosted by Boeing in Phoenix, Arizona. This conference always provides an intimate setting for OEMs and suppliers to get together. Honestly, these events feel like part family reunion/part work happy hour but with very informative and inspiring sessions—topics surrounding supply chain challenges with parts, policies, governance, ESG, and future predictions.Aeromart followed shortly after AIA in Montreal, Canada. This conference toggles back and forth between Montreal and Seattle each year, further building our alliance. Discussions centered around supply chain challenges, future needs, labor shortages, visibility, transparency, and leveraging technology and tools. SupplyOn had a prominent presence at the conference, hosting a booth and delivering a workshop by our CEO, Derek Baggerly, to bring the buzzwords to business case. Sustainability, transparency, visibility, and ecosystems, to name a few.Throughout 2023, the demand for our supply chain software has been overwhelming, leading me to prioritize partnerships and skip a couple of conferences. However, this high demand signifies the growing importance of digital transformation in supply chains. As we move forward, transparency, visibility, collaboration, and sustainability remain key drivers in meeting the needs of 2023 and beyond.Looking forward to the Paris Air ShowWrapping up the mid-year recap, I'm excited to attend my first Paris Airs Show. This is an important event, particularly with the increased interest from North America. I'm honored to be a part of the show and look forward to engaging with industry professionals, learning more about aerospace organizations, and enjoying the airshow. Stay tuned for the show's highlights, the rest of 2023, and more!
A digital twin is defined as the digital image of a product or process. It supports process optimization, early error detection, and automation gains along the entire value chain. New, service-oriented business models can be created based on the digital twin. However, the German economy is still having a hard time with digitization and an even harder time with digital twins."A large proportion of companies are using digital technologies to secure their competitiveness, but not to develop new business models, for example in the form of digital, portfolio-complementing value-added services," says Michael Finkler, VDMA Board Member for Software and Digitalization, in a recent article for Industry of Things (article in German).Digital twin — already a realityAdmittedly, digital twins are not yet at the forefront of many conversations and processes at customers and suppliers to create new value-added products and services. Nevertheless, SupplyOn has been working on this in the background for some time. For each material number, for example, all available data — even at serial number level — is combined and made available. This makes it possible, for example, to automate goods receipt or to provide quality data electronically. SupplyOn supports various initiatives in this regard, such as Industry 4.0, Asset Administration Shell (AAS) or Catena-X standardization.Hence, the foundation is laid for companies to develop their own value-added services or secure competitive advantages based on a digital twin. Now it's time to get active and creative!
How do you achieve a resilient supply chain with transparency, visibility, and sustainability in 2023? Focus on these four areas:CollaborationActual two-way collaboration is necessary to achieve supply chain resiliency. Instead of chasing down parts, real-time updates and feedback all in one place are needed to make the best decisions. In order to achieve this, accurate data and the right tools are imperative for this process to create a holistic environment for both your organization and supply chain for ultimate success together. DataTo create more effective and efficient supply chain management we need data. Everyone wants data and has it in some form. Unfortunately, what is referred to as a "data lake" is often more like a bunch of random muddy puddles in a field after a huge rainstorm; not clear, not connected, unknown depths, and is generally very messy. So how do you collect it and connect it to analyze it efficiently? With digital tools.ToolsFor accurate data, visibility, resiliency, and sustainability, ultimately, you need the right tools. Organizations everywhere realize and understand that more tools are required to level up a system, replace a system, or bridge the gaps with existing systems. With the right tools, data can be collected and organized in an easy-to-use platform with dashboards and reports at your fingertips to continually monitor, collaborate and analyze your data. True PartnershipManufacturers everywhere have a lot at stake. However, going away is the "do it or else" attitude regarding supply chain. Instead, it is being replaced with holistic, collaborative, and honest relationships with key suppliers and competitors. In 2022, I heard more and more, "how can we work together to get this done?" Wordsmithing mashups with competitor + partnership + friendship are coming into play like 'friendtitor,' 'partnitor,' and 'competiship.' Right now I am loving this more open-minded approach to chaining business processes and practices. I'm excited to be a part of this ecosystem and change for the future.
