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Tag: digital transformation
SupplyOn joined over 4,000 attendees at the 2024 Gartner Supply Chain Symposium/ Xpo in sunny Orlando. Together, we were all on a mission to connect and gather knowledge and insight about the latest supply chain trends and technology to bring resiliency to their organization's supply chain. These are my 5 key takeaways from this inspiring event:Resilience & Risk: The supply chain has always been challenging and fragile, even before the global pandemic. Still, today, disruptions have become more frequent and severe. Analysts advise making changes in supply chains to depart from an “antifragile” state. There must be a focus on resilience and risk management while adopting proactive strategies to achieve resilience.AI/Data-driven Decision-Making: Accurate, up-to-date data has always been critical for supply chains. Organizations must harness the power of data analytics to gain actionable insights, optimize operations, and drive informed decision-making at every level of the supply chain.Digital Transformation: Organizations must fully embrace digital transformation in their supply chains. Technology must be leveraged to enhance visibility, agility, and efficiency across the supply chain.ESG/Sustainability: In my opinion, the US has been slower to move forward with ESG requirements, but this topic is gaining traction, especially as global requirements are impacting the US in multiple ways. Gartner highlighted that ESG is growing recognition within the supply chain. Beyond being kind to our planet, it is clear, organizations must reduce carbon footprint, ensure ethical sourcing practices, and promote social responsibility in order to remain competitive in the global marketplace, while reducing costs.Partnerships: Partnerships are essential for growth and collaboration within the supply chain. Forging strategic alliances with suppliers, customers, stakeholders, and solution providers is critical to driving innovation, mitigating risks, and creating shared value.Partnering with SupplyOn can transform your supply chain to become resilient.SupplyOn offers a comprehensive suite of digital supply chain solutions that align with the key takeaways from this latest event. For over 20 years, SupplyOn has been partnering with organizations to accelerate their digital transformation journey, enhance resilience, promote sustainability, foster collaboration, and leverage data-driven insights to drive competitive advantage in today's dynamic business landscape.
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.
In the dynamic business landscape, digital transformation has emerged as a game-changer. As organizations try hard to stay competitive and relevant, it's no longer a question of if but how and when they should embark on their digital transformation journey. However, achieving a return on investment (ROI) from these efforts is not a given; it requires a strategic approach. Here is a brief summary, after 14 years in the industry, of the five building blocks to consider when embarking on a digital transformation initiative to ensure and deliver the ROI you expect.1. The right scopeOne of the fundamental drivers of digital transformation ROI is defining the right scope. Without a clear understanding of what needs to be transformed and why, your efforts can become unfocused and wasteful. Start by identifying specific pain points, goals, and the expected outcomes. This will allow you to prioritize and allocate resources effectively, ensuring that your digital transformation initiatives align with your business objectives, and most importantly, it allows you to track where the ROI is coming from.2. When the decision is made: go all in!Digital transformation isn't just about embarking on the journey; it's about ensuring you reach the destination successfully. One critical driver of digital transformation ROI is completing the transformation and fully digitizing the processes.When a project remains incomplete or certain processes aren't fully digitized, companies often find themselves in a challenging situation. They end up managing both the old, legacy systems and the newly digitized processes simultaneously. This not only leads to operational inefficiencies, but also dilutes the potential ROI.To maximize your digital transformation ROI, it's crucial to ensure that the transformation journey is comprehensive and delivers on the defined scope. This will not only streamline operations, but also allow your organization to fully leverage the benefits of digital technology, ultimately delivering the desired return on investment.3. If you don’t get started, you’ll move backwards: pilots as a means to test, learn and capitalizeDigital transformation doesn't have to be an all-or-nothing endeavor. A successful approach often involves starting with pilot projects. These smaller initiatives provide a testing ground for new technologies and processes, allowing you to test your assumptions, learn, and capitalize, before scaling up. Pilots also demonstrate the benefits of digital transformation to stakeholders, building trust and buy-in across the entire organization.4. Change management: bringing new solutions into usageSuccessful digital transformation is as much about managing people as it is about implementing technology. Change management is a critical driver of ROI because it ensures that your workforce is equipped to adapt to the new digital environment. Effective communication, training, and support mechanisms help employees to make a smooth transition and become advocates for the change rather than resistors.5. Managing the change: bridging the old and the newWhile change management sets the stage, ongoing management of the change is essential and requires a delicate balancing act. Digital transformation is not a one-time event, but an ongoing process. It's not just about defining the new processes post-digitization, but also about handling the past activities that were managed with the old processes.This includes defining the new processes, managing the legacy processes/non-digital methods, continuously monitoring the transition, and ensuring that value is delivered, even after the digitization project is finished.By successfully managing the change and bridging the gap between old and new processes, your organization can make the most of its digital transformation efforts and achieve a higher ROI, even when dealing with legacy activities. This holistic approach ensures that no stone is left unturned on your journey toward a more efficient and digitally empowered future. In conclusion, delivering ROI through digital transformation is attainable, but it demands a strategic and comprehensive approach. It starts with defining the right scope, gaining full commitment, and initiating pilots to validate your efforts. Effective change management ensures that your workforce is aligned with the transformation, and ongoing management keeps your initiatives on the path to success. By embracing these five drivers, your organization can not only navigate the challenges of digital transformation but also reap the rewards of a more efficient, competitive, and innovative future.
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.
