Digital Transformation Upstream Supply Chain
To optimize the management of upstream supply chains using advancing technologies, there is a need to integrate data and technology in innovative ways. A prominent consultant has identified 5 critical technologies that support the digital transformation of supply chain management, known as Supply Chain 4.0:
- Predictive Analytics
- Artificial Intelligence
- Cloud Computing
- Internet of Things
- Robots [1]
By combining these technologies with digital supply chain models and simulation capabilities, a platform solution can be created to identify potential factors that may impact supply chain operations in real time. This allows for quick action to be taken to minimize any negative effects.
An effective upstream supply chain platform should incorporate data from sources such as legacy applications, internal data sources (including IoT), and third-party alerting services. These data sources should be integrated with a digital model of the supply chain that accurately reflects the operational status of all nodes and transportation links, as well as the dependencies between them. Computer models should be developed to capture the capacities and vulnerabilities of each node, allowing users to project the potential effects of operational changes, streamline operations, or reduce costs.
Such models should also allow for the assessment of mismatches between supply and demand due to changing sales projections, the impact of unexpected warranty claims or part deliveries, potential disruptions caused by weather, strikes, cyber-attacks, or changes in conditions along the supply chain, as well as the consequences of delayed, incomplete, or defective shipments, caused by government actions or private sector errors.
1 https://www.gep.com/blog/technology/the-new-normal-for-supply-chains; Dec. 27, 2022; downloaded 3/17/2023