Tag:

supply chain

Launch of the Supply Chain Prompt Contest

by Editorial Team September 21, 2023

Generative AI, in particular Chat GPT, can be a valuable tool to supply chain, procurement and logistics professionals.

By using natural language processing, it can provide quick and efficient support to your suppliers, customers or partners. It can also help with route optimization by analyzing shipping data and making suggestions to improve delivery times and reduce costs.

Chat GPT can also be used to automate tedious and repetitive tasks and help improve communication within the supply chain organization by allowing all parties to access real-time information, reducing the risk of miscommunication and errors.

We are thrilled to announce the launch of the Supply Chain Prompt Contest!

As a valued member of the supply chain community, we would like to invite you to participate and showcase your expertise in this exciting competition.

We are seeking innovative and useful prompts for ChatGPT, Bard or Bing, specifically tailored for the supply chain, procurement and logistics profession.

By submitting your prompts, you stand a chance to win free memberships to the Global Supply Chain Council (GSCC) and have your winning entries published in our SupplyChains magazine.

Submit your best prompt today on http://chainte.ch/prompt

September 21, 2023

Web3 Digital Twins: Revolutionizing the Supply Chain Industry

by Editorial Team September 21, 2023

Unveiling the Future of Supply Chain with Web3 Digital Twins

Join us as we delve into an insightful discussion on the transformative power of Web3 Digital Twins in the supply chain industry. Learn from industry leaders Vamsi Krishna C and Krishna Sumanth C, as they share their expertise and vision for the future of supply chains.

In a recent YouTube discussion titled “Web3 Digital Twins in Supply Chain,” industry leaders Vamsi Krishna C, the Marketing Head, and Krishna Sumanth C, the Tech Head of a startup called Karpine, shared their insights on the transformative power of Web3 Digital Twins in the supply chain industry.

The discussion began with an introduction to the concept of Web3 Digital Twins and their potential applications in supply chain management. The speakers acknowledged the challenges faced by the supply chain landscape and the need for new emerging technologies to revolutionize the way supply chain processes are managed and optimized. They explored how digital twins can create a secure and transparent representation of physical assets, processes, and transactions within the supply chain network.

Vamsi Krishna C, with a background in mechanical engineering and a passion for technology, emphasized the importance of ensuring that inventory entered into an ERP system matches actual inventory. The solution proposed is the use of digital twins, which create a physical and software representation of each product. The digital twin is connected to the ERP system through an RFID sticker, which ensures that the two are bridged. The entire data is captured on the blockchain, creating an immutable ledger.

Krishna Sumanth C, who holds a master’s degree in cryptography and quantum computing, discussed the use of RFID technology to automate the reading of data on products, eliminating the need for physical counting or barcode scanning. RFID readers can read up to 30 meters and push data to blockchain systems, creating an automated inventory system that matches with ERP systems.

The speakers also touched on the potential benefits of a product that customers use frequently, and suggested that implementing an NFT program could generate positive cash flow. They also mentioned the use of frictionless checkout systems, such as QR codes, in airports and other locations.

In conclusion, the insights shared by these industry leaders underscore the transformative potential of Web3 Digital Twins in the supply chain sector. As we move forward, it’s clear that embracing this technology is not just an option but a necessity for supply chain professionals.

So, what do you think about the future of Web3 Digital Twins in supply chain management? How do you see it impacting your industry? We invite you to share your thoughts and join the conversation in the comments below. Let’s embrace the future of supply chain together!

For a more detailed understanding of the topic, you can watch the full YouTube video.

September 21, 2023

ESG-Compliant Firms are More Profitable, Says Bain and Ecovadis

by Editorial Team September 21, 2023

A recent report from consulting firm Bain & Company and sustainability ratings provider EcoVadis has found that companies that prioritize environmental, social, and governance (ESG) factors are more profitable than those that do not.

The report analyzed data from over 3,900 companies across the globe and found that ESG-compliant firms had an average profit margin that was 4.7% higher than non-compliant firms. Additionally, ESG-compliant firms also had a lower cost of debt and were less likely to experience negative financial events, such as bankruptcies and fraud.

The report also found that ESG compliance was correlated with stronger brand value and customer loyalty. Companies that prioritized ESG factors were more likely to have a positive brand reputation and a loyal customer base.

ESG factors refer to a company’s performance in areas such as environmental sustainability, social responsibility, and corporate governance. These factors are becoming increasingly important to investors and customers, as they seek to align their investments and purchases with their values.

The report from Bain and EcoVadis highlights the business case for prioritizing ESG factors, showing that companies that do so are not only doing the right thing for society and the environment but are also more profitable in the long run.

However, the report also notes that many companies still face challenges in implementing effective ESG strategies. One major challenge is the lack of standardization in ESG reporting and measurement, which can make it difficult for investors and customers to compare and evaluate companies’ ESG performance.

To address this challenge, the report recommends that companies work towards standardizing ESG reporting and measurement, in order to increase transparency and comparability. Additionally, the report recommends that companies develop robust ESG strategies that are aligned with their business goals and values.

Overall, the report from Bain and EcoVadis underscores the importance of ESG factors for companies’ long-term success. As investors and customers increasingly prioritize sustainability and social responsibility, companies that prioritize ESG factors will be better positioned to attract investment and customers, while also achieving long-term profitability.

September 21, 2023

Estée Lauder Lags Behind Rivals in China’s Booming Beauty Market

by Editorial Team September 21, 2023

The multinational beauty firm Estée Lauder is facing supply chain issues in China that have caused a drop in market share in comparison to its rivals. China, which has the largest cosmetics market in the world, is a significant development engine for the beauty sector. The challenges faced by Estée Lauder serve as a reminder of how supply chain disruptions affect the sector, which is increasingly dependent on the nation for production and sourcing.

According to reports, Estée Lauder’s supply chain issues are a result of the corporation placing an undue amount of dependence on a single Chinese manufacturer to produce a crucial product. The facility was forced to close for an extended period of time because to COVID-19 breakouts and labor shortages, which led to delays in product shipments and shortages on store shelves. Not only Estée Lauder but other cosmetics manufacturers in China are having supply chain issues. Due to China’s tighter regulatory environment and growing tensions with the West, other participants in the business are also dealing with similar difficulties.

Estée Lauder has moved to diversify its manufacturing and sourcing operations away from China in order to lessen the impact of the supply chain disruptions. According to reports, the corporation has grown manufacturing in other nations including Vietnam and Malaysia and is looking into opportunities for shifting production to other Southeast Asian markets. However, it might take some time for these changes to take effect, and they might not entirely make up for the lost income in China.

The difficulties faced by Estée Lauder in China serve as a reminder of the value of a diversified supply chain and the necessity of contingency planning. Even though China is still a crucial market for the beauty sector, businesses must be ready for supply chain interruptions and unforeseen circumstances that could affect their operations. To increase the visibility and resilience of the supply chain, this entails diversifying manufacturing and sourcing operations across several nations and investing in technology and data analytics.

Not only the beauty business in China is having supply chain issues. Labor shortages, regulatory crackdowns, and geopolitical tensions are also causing disruptions for businesses in other sectors, such as technology and the automotive industry. Supply chain disruptions in one region of the world can have an impact on enterprises all over the world as the world becomes more connected.

In conclusion, Estée Lauder’s supply chain issues in China should serve as a lesson for businesses who rely significantly on the nation for sourcing and production. While there are many advantages to conducting business in China, businesses must also be ready for the dangers and difficulties that come with doing business there. Businesses must diversify their operations and invest in supply chain resilience if they want to succeed in the increasingly complex and unpredictably changing global economy.

September 21, 2023

Navigating the Automotive Supply Chain: From Disruption to Resilience

by Deni Putri September 21, 2023

The Automotive Supply Chain Revolution: Strategies for a Resilient Future

In a world of unprecedented challenges, how is the automotive industry reshaping its supply chains for long-term resilience? Dive deep into the insights from Capgemini Research Institute’s 2023 report to understand the transformation underway and the strategies setting the pace for the future.

The automotive industry, with its intricate supply chains and complex manufacturing processes, has faced a series of disruptions that have tested its resilience. From global pandemics to geopolitical shocks, the industry’s conventional wisdom has been put to the test, prompting a reevaluation of long-standing practices.

Key Insights from the Report:

A New Reality: The past few years have seen the automotive industry grappling with unprecedented supply chain disruptions. This new, volatile reality has forced companies to rethink their strategies and adapt to changing circumstances.
Challenges and Adjustments: While many organizations have adjusted to remain competitive in this transformed landscape, the industry at large has struggled. Systemic challenges persist, and new ones have emerged, including an over-reliance on inventory boosts to manage uncertainty, waning sustainability efforts, and tensions between OEMs and suppliers.
The Need for Transformation: To navigate these challenges, automotive organizations must reinvent their supply chain models. The future of the automotive supply chain hinges on being intelligent, data-driven, and agile.
Building Resilience: The report delves into strategies that can help organizations address current challenges. It emphasizes the importance of automotive supply chain trends like nearshoring and highlights the need for structural, cultural, and technological changes to turn supply chains into sources of competitive advantage.

Quotes from the Report:

“Organizations have found themselves in an environment that requires more agility and responsiveness from supply chain management in the automotive industry.”
“To deal with present upheavals, automotive organizations need to re-invent their entire supply chain models to create a future of the automotive supply chain that is intelligent and data-driven.”
“We conclude with how organizations can move beyond reacting to current events and turn their supply chains into sources of competitive advantage in the future by implementing structural, cultural, and technological changes.”

Key Takeaways:

Embrace Change: The automotive industry’s future success hinges on its ability to adapt and evolve in the face of challenges. Embracing change and being proactive is crucial.
Intelligence is Key: The future of the automotive supply chain is data-driven. Leveraging data and analytics can offer solutions to some of the sector’s most pressing challenges.
Collaboration and Innovation: In an industry as complex as automotive, collaboration and innovation are essential. Partnerships can drive transformation, foster resilience, and pave the way for a brighter future.

Engage with Us!
We’d love to hear your thoughts on the future of the automotive supply chain. How do you see the industry evolving in the face of challenges? What strategies do you believe will be most effective in ensuring long-term resilience? Share your insights in the comments below!

September 21, 2023

Elevating Supply Chain Risks: A Boardroom Priority in the New Business Landscape

by Editorial Team September 21, 2023

The importance of supply chain risk management has skyrocketed, making it a top priority for corporate boards. This shift has been triggered by the COVID-19 pandemic, which exposed the vulnerabilities of supply chains and the significant impact of disruptions on businesses. But what are the supply chain-related issues that warrant board-level attention, and how can they be effectively managed?

The Evolution of Supply Chain Management

In the past, supply chain teams operated behind the scenes, with little need for risk dashboards or mitigation strategies. However, the pandemic has shattered these glass walls, thrusting supply chain risks into the spotlight and onto board agendas.

The Rising Challenges

Global supply chains are grappling with escalating energy and commodity costs, geopolitical tensions, and a surge in cyberattacks. In this increasingly complex environment, corporate boards are not taking supply chain continuity for granted.

Four Key Supply Chain Risks Worthy of Board Attention

1) Impact on Revenues and Costs

Supply chain risks that materially impact the bottom line are sure to capture the board’s attention. These risks may arise from a key supplier’s failure to deliver a crucial component, leading to the company’s inability to fulfill its own obligations. They may also stem from rising prices, as seen in the chip industry, where companies have struggled to pass on increased costs to their customers.

2) Reputational Impact

Companies relying on a global network of suppliers are at risk of reputational damage. This could result from a compliance scandal related to corruption or sanctions violations. If a company’s internal controls are weak, the price of non-compliance in these heavily enforced areas can be high, and the reputational damage can be substantial.

3) High-profile Risks

Risks that consistently make business headlines are likely to feature on the board’s agenda. Cyber risk is a prime example, posing a constant threat to a company’s operations. A successful attack on a supplier can compromise their customers’ sensitive data, disrupt deliveries, and potentially allow access to customers’ internal systems.

4) Impact of Supply Chain Adjacent Risks

The final group of risks is related to those already on the board’s radar. For instance, sustainability and climate risks are well-known board agenda items, but the impact of these risks on the supply chain is often overlooked. Most corporate sustainability commitments are delivered by companies’ suppliers, while climate risk is a crucial aspect of supply chain resilience.

Conclusion

The COVID-19 pandemic has elevated the importance of supply chain risk management, making it a boardroom priority. As businesses navigate this new landscape, effective management of these risks is crucial for ensuring business continuity and resilience.

What are your thoughts on the role of supply chain risks in boardroom discussions? How do you see these risks evolving in the future? Share your thoughts and comments below.

September 21, 2023

Utilizing Artificial Intelligence’s Potential: A New Era in Supply Chain Management

by Editorial Team September 21, 2023

Supply chain management is not an exception to how artificial intelligence (AI) is transforming businesses throughout the world. Supply chain management could benefit from the efficiencies, cost savings, and streamlined processes that artificial intelligence (AI), a technology that allows robots to mimic human intelligence, can bring about. This has been prompted by the increased requirement for companies to react swiftly and successfully to the constantly shifting market conditions.

The Transformation of Supply Chain Management: The Role of AI

Aspects of the supply chain are being transformed as a result of AI. The effects of AI are wide-ranging, affecting everything from planning and sourcing to production, delivery, and returns.

Planning: Predictive analytics enabled by AI aid businesses in more precise demand forecasting, which enhances inventory management. Companies like Amazon, for instance, are using AI to predict customer demand and make sure the proper products are always in stock.

Sourcing: AI is being used to evaluate supplier performance, evaluate risks, and find cost-saving options. This aids companies in creating supply networks that are more reliable and economical.

Manufacturing: Predictive maintenance, which reduces machine downtime by foreseeing breakdowns, is one way AI is boosting productivity in the industrial sector.

Delivery: Delivery logistics are being transformed by AI. AI-powered autonomous vehicles and drones are now used for deliveries, increasing efficiency and lowering human mistake rates.

Returns: AI can help businesses automate their return procedures, cutting down on the time and expense associated with processing returns.

The advantages and disadvantages of AI in supply chain management

Despite the enormous advantages of AI in supply chain management, its implementation has its own set of difficulties. One the one hand, AI has the potential to greatly increase operational effectiveness, lower costs, and boost customer happiness. Additionally, it can assist businesses in swifter market adaptation, strengthening the resilience of their supply networks.

But there are challenges involved in incorporating AI into supply chain processes. It needs a substantial investment and a personnel with expertise in AI technology. Additionally, organizations must manage the ethical and privacy issues raised by the usage of AI.

The Role of AI in Supply Chain Management in the Future

In the future, supply chain management will increasingly rely on artificial intelligence (AI). In fields like real-time tracking, risk management, and sustainable sourcing, we may anticipate seeing a growth in the application of AI. Furthermore, the growth of AI will probably encourage the creation of new business models in the supply chain sector.

In conclusion, it is undeniable that AI will influence supply chain management in the future. Businesses can enhance their operations and obtain a competitive edge in the market by utilizing its power. However, in order to fully profit from AI integration, businesses must handle the difficulties that arise.

The AI revolution is only getting started in the field of supply chain management, and the opportunities are unlimited. Those who are willing to adopt this revolutionary technology will definitely find the future to be full of exciting opportunities.

We hope that by offering insights into how AI is affecting supply chain management, this paper will serve as a useful resource for anybody looking to comprehend this quickly changing environment. We are excited to follow this journey and report on it as the further development of AI technology promises a new era of efficiency and innovation in supply chain management.

September 21, 2023

Charting the Path to Sustainable Supply Chains: Insights and Steps to Success

by Editorial Team September 21, 2023

Embracing Sustainability in Supply Chains: A Guide to Transformation

In an era where sustainability is no longer a choice but a necessity, how can businesses adapt their supply chains? This article delves into a recent guide by Flexport.org, offering insights from green supply chain leaders and outlining actionable steps towards sustainability.

In the face of growing environmental concerns and increasing consumer demand for sustainable practices, businesses are recognizing the need to green their supply chains. A recent guide by Flexport.org, titled “Small Steps Towards Sustainability: Insights from Green Supply Chain Leaders,” provides valuable insights and practical steps for businesses embarking on this journey.

The guide emphasizes that sustainability within supply chains is shifting from a “nice-to-have” to a “priority.” Studies indicate that Scope 3 emissions, which occur within a company’s supply chain, can account for between 65% and 90% of total emissions. For smaller and mid-sized companies that lack the resources and capacity of bigger companies, the path towards sustainability can feel daunting, confusing, and at times uncertain.

Flexport.org interviewed sustainability champions from partners like Cotopaxi, Framework, Klean Kanteen, O My Bag, and Tricon Energy to rewrite the playbook for companies who might not know where to start. The guide synthesizes five critical learnings to make sustainability achievable for everyone:

Start with a Materiality Analysis: Elizabeth Carlson from Tricon Energy suggests starting with a simple materiality analysis or a social and environmental risk and impact assessment of the company’s operations, including the supply chain.
Get Clear on Your Motives: Annie Agle from Cotopaxi emphasizes the need to understand why your company is focusing on certain sustainability aspects over others.
Deliver on Your Promise: Brett Renlund from Klean Kanteen stresses the importance of fulfilling your sustainability commitments.
Build It Into Your Model: Amanda McElmurray from Framework advises integrating sustainability into your business model from the start.
Collaborate Creatively For Change: Elizabeth Carlson from Tricon, Femke Lotgerink from O My Bag, and Annie Agle from Cotopaxi all advocate for creative collaboration to drive change.

Takeaways:

“Sustainability is becoming a priority within supply chains, accounting for a significant portion of a company’s total emissions.”
“Starting with a materiality analysis can help companies understand their social and environmental impact and risks.”
“Building sustainability into the business model and collaborating creatively can drive change and make sustainability achievable for all.”

We’d love to hear your thoughts on the path towards sustainable supply chains. How is your organization embracing sustainability? What challenges and successes have you encountered? Share your insights and join the conversation in the comments section below.

September 21, 2023

Interview with Dana von der Heide, Founder of Parcel Perform

by Editorial Team September 21, 2023

We interviewed Dana von der Heide and discussed her background, what made her starting the company, the type of solutions they provide, the competitive landscape and much more…

Check out his LinkedIn profile: https://www.linkedin.com/in/danavonderheide/

Visit https://www.parcelperform.com/ for more information on the company.

For more ChainTech startups, solutions and founders, visit https://www.chaintech.net/

September 21, 2023

The Metaverse at Work: Transforming Transportation, Supply Chain, and Logistics

by Editorial Team September 21, 2023

Leveraging the Metaverse for Industrial Efficiency: A Deep Dive into Transportation, Supply Chain, and Logistics

The metaverse is no longer a buzzword confined to the realm of consumer applications. This article explores a report by Ernst & Young and Nokia, shedding light on how the industrial and enterprise metaverses are revolutionizing the transportation, supply chain, and logistics sectors.

The metaverse, a term often associated with gaming and social networking, is making significant strides in the industrial and enterprise sectors, particularly in transportation, supply chain, and logistics. A recent report by Ernst & Young and Nokia, titled The Metaverse at Work, provides a comprehensive analysis of the current state and future potential of the metaverse in these sectors.

Contrary to the popular belief that the metaverse is a futuristic concept, the report reveals that the industrial and enterprise metaverses are already here and growing rapidly. The study, conducted across six geographies and four industries, presents a consistent global picture, demonstrating how metaverse use cases are being practically planned and deployed across key verticals.

The report highlights that the benefits realized by early adopters generally exceed the expectations of those in pre-deployment stages. It underscores the true challenges they’ve faced, often hinged on technical infrastructure, and reveals that the partners they are employing to face these challenges are not necessarily the companies seen as driving the advancement of the metaverse.

One of the key findings of the report is that companies believe in the power of the metaverse, with only 2% of respondents viewing it as a buzzword or fad. Furthermore, 58% of companies planning to enter the industrial and enterprise metaverses have already done so through at least a pilot program.

In the context of transportation, supply chain, and logistics, the metaverse offers significant potential. For instance, visualized predictive maintenance and autonomous/remote-controlled maintenance robotics are two use cases that have shown promising results. By overlaying sensor data on a digital twin, information can be made more actionable for technicians, leading to improved process efficiency and sustainability due to minimized machine downtime and extended machine lifetimes.

Moreover, the use of autonomous or remote-controlled robotics for maintenance and repairs allows for prompt interventions for vehicles on the move. This not only results in capital expenditure (CAPEX) reduction and sustainability benefits due to extended machine lifetimes but also improves safety by reducing the need to put humans in higher-risk environments for certain repairs.

The report also emphasizes the importance of technical enablers that allow for enhanced collection, transmission, storage, and processing of data, which are foundational to launching metaverse use cases. These enablers include cloud computing, AI/ML, industrial data collection, and network. For instance, cloud computing enables the storage and processing of the large quantities of data inputs and outputs required to orchestrate metaverse use cases. AI/ML is indispensable for modeling digital twins and creating realistic environments and simulations and interpreting data/making predictions.

However, the deployment of metaverse use cases is not without risks. The primary concerns for metaverse use cases are cyber, information security, and data privacy, with over 60% of respondents citing these as primary risks. Cyber and information security risks are paramount across a range of digital use cases but are amplified by the drastic increase in data, that industrial and enterprise metaverse use cases will produce. Data privacy risks can prove especially complex, particularly as companies expand the scope and scale of use cases to reflect a more interwoven, data-driven virtual ecosystem, incorporating valuable, potentially sensitive, data assets.

Takeaways:

The industrial and enterprise metaverses are already here and growing rapidly, with significant potential for the transportation, supply chain, and logistics sectors.
Visualized predictive maintenance and autonomous/remote-controlled maintenance robotics are two promising use cases in these sectors, leading to improved process efficiency, sustainability, and safety.
The benefits realized by early adopters of the metaverse generally exceed the expectations of those in pre-deployment stages, underscoring the tangible value of the metaverse in the industrial and enterprise sectors.

We’d love to hear your thoughts on the application of the metaverse in the transportation, supply chain, and logistics sectors. How is your organization leveraging the metaverse? What challenges and opportunities do you foresee? Share your insights and join the conversation in the comments section below.

September 21, 2023

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In a world of unprecedented challenges, how is the automotive industry reshaping its supply chains for long-term resilience? Dive deep into the insights from Capgemini Research Institute’s 2023 report to understand the transformation underway and the strategies setting the pace for the future.

Key Insights from the Report:

Quotes from the Report:

Key Takeaways:

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