Home' MHD Supply Chain Solutions : MHD May-Jun 2016 Contents OPTIMISE YOUR
he supply chain community is continually
being challenged to deliver operations
in the most effective and cost-efficient
manner. The prospect of corporate cuts to
budgets puts greater emphasis on using the
supply chain to reduce costs and enhance value.
But what if I told you that successful
organisations have shown that it is possible to
make cost savings of up to 20% whilst operating
a world-class supply chain?
With the latest enterprise technology, these
organisations have reduced the total purchasing
cost of materials, controlled their stock levels,
accelerated fulfilment while lowering overhead
costs, and optimised their delivery performance.
Silos hamper supply
While most companies have invested in
enterprise software, their systems often don’t
cover the entire supply chain. There’s also a
question mark over whether they are modern
and agile enough to exploit new technologies,
like the Internet of Things, for example.
Information silos still hamper supply chain
operations. We see poor information exchange
at two levels: within organisations, and between
parties in the supply chain. Better integration
could greatly improve coordination to improve
efficiency and lower costs.
We are also seeing a host of new technologies
like Enterprise Operational Intelligence, 3D
Printing, wearable devices, and the Internet of
Things (IoT) – coming onto the market with the
potential to boost efficiency even further.
With the IoT, equipment or devices within
the supply chain can communicate directly
with operators and provide a rich source of
information. This can be analysed alongside
information from existing systems, such as
enterprise resource planning (ERP).
We have been developing Enterprise
Operational Intelligence technology to turn this
'Big Data' into something useful. We can create
a real-time map of the entire supply chain
and link it to enterprise software to monitor
processes via key performance indicators to
deliver on strategic goals.
Actionable Operational Intelligence
In our experience, you need to have an
integrated real-time overview of the business
to inform actions that reduce costs and
enhance value. Typically, in the past, that sort
of actionable intelligence wasn’t available until
some predefined point – a two-week, monthly
or even yearly report. With real-time access to
data, however, you can make decisions that
affect current operations rather than the end of
the week or even later.
An Enterprise Operational Intelligence
platform provides functionality for numerous
aspects of the end-to-end operations, including
real-time analytics, dynamic forecasting,
workflow management, process management,
risk and compliance. Raw transactional data
from IT systems is consolidated into a single
dynamic management layer, providing powerful
On top of that, you can build a performance-
based logistics (PBL) enterprise incorporating a
number of the following elements:
• Contract for supportability and availability.
• Connect processes, performance and risk.
• Connect all parties in the supply chain
• Connect KPI, workflows and reports to your
• Align global sourcing strategies.
• Eliminate waste within your supply chain.
• Implement supply chain performance man-
• Achieve transparency of inventory levels.
• Measure and manage all costs together.
• Fully automate your reports.
A single version of the truth
Connected management cockpits are designed
to deliver one version of the organisational
truth. With an integrated environment you can
have all the information you need presented
in a clear, role-based way. Users can see clear
visualisations allowing them to anticipate,
control and react to changing demands. It also
enables collaboration across the supply chain
and other business functions, such as finance,
which drive efficiencies.
By connecting your existing IT source
systems, you can make changes to processes
without making manual, time-consuming
costly changes to underlying ERP and other
source systems. This ability provides leading
organisations with the much-needed agility to
deliver at lower cost without affecting capability
to enhance the value they provide.
Rob Stummer is the managing director,
Australia and New Zealand, for global
enterprise applications company IFS. For more
information visit www.ifsworld.com/au.
With the Internet of Things, new
devices within the supply chain will
provide data for analysis alongside
existing information sources.
“By connecting your existing IT source systems,
you can make changes to processes without making
manual, time-consuming costly changes to underlying
ERP and other source systems.”
MHD SUPPLY CHAIN SOLUTIONS — MAY / JUNE 2016
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