Home › Blog › Articles posted by Christian Kastl

SupplyOn Blog

Christian-Kastl

Christian Kastl

Manager Industry 4.0

It’s exciting to live in the digital age. We will see a lot of new developments which will drive new business models. I’m interested in the fields of Industry 4.0, Smart Factory und Smart Logistics and in my blogs, I try to bring some light in the big space of new solutions and trends in this fields.

Posts by Christian Kastl:

SCM Insights

The future of companies is integrated planning: why S&OP and IBP need external data sources

Just recently, I attended the S&OP Summit in Amsterdam – the leading conference on Sales and Operations Planning (S&OP). My aim was to find out about the new possibilities and developments in S&OP and IBP so that I could show SupplyOn customers the added value of integrating planning and execution. Strategic planning has always been at the heart of a successful company. Processes such as S&OP and IBP (Integrated Business Planning) provide a structured framework for this. But despite decades of further development, many companies are still struggling with the same challenges: data silos, a lack of proof of added value and internal resistance. It is particularly striking how little consideration has been given to integrating external data sources into these processes.The importance of S&OP and IBP for companiesS&OP and IBP help to align a company's strategic, operational and financial plans. They are designed to create transparency, make data-based decisions and increase agility in the market. Companies that successfully implement these processes benefit from:More efficient operations through coordination between departmentsBetter forecasts through a unified view of supply and demandHigher resilience to market changes and risksBut the key to truly integrated planning lies not only in internal collaboration, but also in the ability to take external influences into account at an early stage.External data: the missing piece of the puzzleIn an interconnected world, external factors such as market trends, supply chain disruptions, geopolitical events and weather conditions have a significant impact on corporate planning. Companies that integrate external data sources into their S&OP and IBP processes have a clear competitive advantage:Better demand forecasting: Data from suppliers, customers and third-party providers help to predict demand more accuratelyProactive risk management: early warning systems based on external data sources can identify disruptions in the supply chain more quicklyOptimization of the supply chain: real-time data on traffic, inventory levels and production capacities enable more efficient resource allocationData quality as a basic requirementA crucial factor for success is the quality of the data. Companies must ensure that their internal and external data sources:Consistent and alignedReal-time capable or at least available in real timeTransparent and comprehensibleThis requires not only technological investments, but also organizational changes. Teams need to be trained, processes adapted and a data-driven corporate culture fostered.The path to integrated planning of the futureTo realize the full potential of S&OP and IBP, companies should follow these steps:Break down data silos: A central platform for integrating internal and external data is essential.Demonstrate added value: The benefits of integrated planning solutions must be clearly communicated to overcome internal resistance.Prioritize external data: Partnerships with third-party providers, integration of suppliers, e.g. via SupplyOn, and technologies such as AI and machine learning can help to use external data more effectively.Continuous improvement: S&OP and IBP are not static processes. They must be regularly reviewed and adapted to new market conditions.ConclusionThe future of successful S&OP and IBP projects lies in the integration of external data sources, such as those provided by SupplyOn for capacity or risk management. By taking this step early on, companies not only create the basis for better decisions, but also strengthen their competitiveness in an increasingly complex and dynamic world. It is time to fully exploit the potential of data – for truly integrated planning and sustainable success!
The future of companies is integrated planning: why S&OP and IBP need external data sources
SCM Insights

S&OP and IBP: two industry trends?

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.
S&OP and IBP: two industry trends?
SCM Insights

Connected Ecosystems – a new era for the industry?

In a rapidly changing political and technological world, mutual trust between business partners plays an increasingly important role. Collaboration within trusted supply networks is becoming a critical competitive factor. It is the basis for successful cooperation within the industry. Trust is also built through the timely and comprehensive provision of data that is shared by all parties. The resulting ecosystem brings immediate economic benefits and is the building block for end-to-end industrial digitalization.So far, 2024 has been a year of constant challenges: Geopolitical conflicts, economic crises, and rapid technological leaps are all putting politics, business, and society to the test. Despite all the uncertainties, many events have made one thing clear time and again: We can only move forward together. That is why we need partners from other countries, other industries and other parts of our supply chain - partners we can trust.Politicians in Germany and industry have recognized this. Various initiatives such as GAIA-X, Manufacturing-X or Catena-X have been launched to bring together the various players in an integrated value chain. SupplyOn was also addressed, as SupplyOn has been operating an ecosystem for more than 20 years, has continuously expanded it and is now also interoperable with other ecosystems such as Catena-X.In a business context, such a network requires one thing above all else: mutual trust. Those who collaborate beyond their own company boundaries and strategically share information with partners, suppliers, customers or government agencies need a secure, reliable digital environment!IDC's "Future of Industry Ecosystems 2023" study shows once again that ecosystems and business success are closely linked: 90% of respondents said they will increasingly rely on connected data ecosystems in the future and plan to maintain or accelerate their investments in them. The drivers are:Increased business agility,greater process automationimproved system integration, andincreased data sharing with partners, also for ESG reasons.It is no secret that data and distributed data is what gives networked ecosystems their unique value. Teams and systems in different companies, locations or government agencies can access the same data in real time. Access rights control the shared view of the data, giving stakeholders an unprecedented view of their own information and a clear understanding of the big picture. Based on this broader insight from multiple systems, stakeholders can now make more informed, faster decisions.In practice, we have already seen that this approach to digital collaboration is successful. Companies such as Pfizer and Biontech were able to research a vaccine against Covid-19 in a very short time, and leading companies such as Henkel and Covestro are already using the digital twin to make their contribution to decarbonization across teams. At a large company like Henkel, each business unit functions as a separate company. In one project, more than 4,000 physical and virtual sensors were installed in different areas and integrated into a single system. These sensors measure electricity, fossil fuels, compressed air, steam, water, and waste water, showing energy consumption on a plant-wide level, as well as in individual production areas and technologies. This enables Henkel to clearly identify where and how energy is consumed in different teams and parts of the company, and to initiate measures to reduce energy consumption. As a result, they have improved energy consumption and emissions data across the supply chain by 5 to 6 percent per year.The integration of artificial intelligence (AI) throughout the system provides even greater competitive advantages. Predictive and prescriptive analyses, for example, make it possible to predict bottleneck situations in the supply chain in good time, identify risks and thus proactively avoid supply bottlenecks. Here, too, SupplyOn is already using AI solutions in its ecosystem to strengthen the resilience of the supply chain, make inventories and bottleneck situations visible, minimize risks and thus enable faster and better-informed decisions. This enables them to ensure that products and services meet customer expectations and that ESG regulations, among others, are implemented efficiently (see SupplyOn's ESG Suite).Buyers, planners, schedulers, suppliers and customers: Each stakeholder benefits from a holistic view of the value chain with improved transparency and real-time data. An analysis by Aveva shows that integrated ecosystem thinking enables industry leaders to increase profitability by 10 percent, triple return on investment and achieve up to 20 percent higher sustainability performance. The SupplyOn experts will be happy to advise you on how to successfully implement an ecosystem.
Connected Ecosystems – a new era for the industry?
SCM Insights

Unlock the power of integrated S&OP and Capacity Management

In today’s dynamic marketplace, staying ahead of the competition means being agile, efficient, and customer-focused. Achieve unparalleled supply chain excellence by integrating sales and operations planning (S&OP) on the buyer's side with robust capacity management on the supplier's side with SupplyOn Capacity Management. This strategic alignment not only optimizes resources but also drives substantial financial benefits.Why integrate S&OP with supplier capacity management?Enhance forecast accuracy: Synchronize your sales forecasts with supplier production plans to accurately manage demand. The benefits include minimizing stockouts and excess inventory, boosting customer satisfaction and reducing costs.Optimize resource utilization: Leverage your supplier's capacity knowledge to ensure resources are used efficiently. This reduces operating costs and increases productivity by balancing workloads.Improve market responsiveness: Quickly adapt to market changes with real-time data sharing and collaborative planning. Reduce lead times and improve your ability to respond to customer demands quickly, resulting in greater customer satisfaction.Reduce costs and maximize profits: By optimizing stock and avoiding supply chain disruptions you can capitalize on improved profit margins and cash flow for greater profitability.While the benefits of integrating S&OP with supplier capacity management are clear, achieving these advantages requires a structured approach and the right tools. Organizations need a systematic strategy to transform their supplier relationships from traditional buyer-seller interactions into true strategic partnerships. The following steps outline how to build and maintain such an ecosystem, leveraging digital solutions like SupplyOn Capacity Management to enable seamless collaboration and real-time visibility.Strategic steps for building a successful ecosystem with your suppliersBuild collaborative relationships: Foster strong partnerships with your suppliers through transparent communication. Establish regular joint meetings and collaborative platforms such as SupplyOn Capacity Management for seamless information exchange.Develop joint forecasting processes: Align demand forecasts with supplier capacity capabilities through collaborative planning and management. Conduct monthly meetings where buyers and suppliers jointly review and adjust forecasts and capacity plans, supported by seamless integration of S&OP planning with SupplyOn Capacity Management.Conduct regular capacity assessments: Assess and understand the capacity constraints and capabilities of your suppliers. SupplyOn Capacity Management provides early warning of impending shortages and helps to proactively manage potential bottlenecks.Leverage advanced analytics and scenario planning: Evaluate different demand and capacity scenarios to prepare for market fluctuations. What-if analysis tools for stress testing supply chain scenarios, developing contingency plans and SupplyOn Capacity Management's simulation of best capacity strategies help to avoid bottlenecks and ensure financial benefits.Align performance metrics: Establish common Key Performance Indicators (KPIs) to measure and drive performance across the supply chain. Collaborative monitoring of metrics such as forecast accuracy, lead time, and service level performance ensures a reliable supply chain and reduces costs.Enhance flexibility and responsiveness: Implement agile supply chain practices to quickly adapt to changes in demand. Digitization with SupplyOn Capacity Management enables flexible manufacturing agreements and agile production schedules.Realize the full potential of your supply chainBy integrating S&OP with SupplyOn Capacity Management, you can create a resilient, responsive, and highly efficient supply chain. This strategic alignment will not only optimize the use of resources, but will also lead to significant financial gains.Experience the transformation:Demand management: Achieve accurate forecasts and optimal inventory levels.Capacity management: Utilize supplier capacity efficiently to reduce costs.Financial outcomes: Increase revenue, improve cash flow, and maximize profitability.Take the next step towards supply chain excellence. Contact us today to learn how our integrated S&OP and Capacity Management solution can drive your business forward.Your success is our priority. Let's build a better supply chain together.
Unlock the power of integrated S&OP and Capacity Management
Industry News

The Digital Product Passport is due to start — are you prepared?

Creating transparency across the entire life cycle of a product: this is what the Digital Product Passport (DPP) aims to achieve. On November 23, 2023, the European Commission published a regulation that will come into force in 2024. Due to the highly interconnected international supply networks, this regulation not only affects companies in the EU, but also has an indirect impact worldwide.What is the Digital Product Passport (DPP)?The regulation contains detailed requirements for the content of the DPP. The Digital Product Passport should contain information about the following topics:Product identity and origin Product composition and propertiesEnvironmental impact of the productProduct repairability and recyclabilityEvery citizen should then be able to access the described information via a QR code or a hyperlink attached to the product.The German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) has already published a list of the product groups for which the DPP will be mandatory by 2025. These areEnergy consumption-relevant products: Household appliances, office equipment, consumer electronics and lighting fixturesLarge electrical and electronic equipment (EEE): Televisions, refrigerators, washing machines, dishwashers and air conditionersTextiles: Clothing, shoes and bed linenPackaging: Plastic packaging, metal packaging and paper and cardboard packagingWhat is the Digital Product Passport for?According to the ministry, the introduction of the Digital Product Passport will make an important contribution to the circular economy. The DPP will enable consumers to make more sustainable consumption decisions. It will also help manufacturers to improve the environmental impact of their products.Concrete impacts of the DPP:Consumers will be able to recognize more easily which products are repairable and which are not. This will help to ensure that more products are repaired and fewer end up in the garbage can.Manufacturers will be encouraged to design their products in such a way that they can be repaired more easily. This will lead to an extension of the service life of products.The recyclability of products will be improved. This will help to ensure that more raw materials from old products can be reused.The introduction of the DPP will be an important step towards a more sustainable economy.Implementation of the digital product passport in practiceThe SupplyOn Traceability solution supports customers and suppliers along the supply chain in collecting and providing the data required for the DPP. The data is then available to authorized users for further processing in the SupplyOn Data Lake called DAISY (data space industry). In addition, SupplyOn's Digital Twin solution offers a wide range of options for providing data to all participants in the industrial network.The EU has already announced that the list of mandatory product groups will be expanded in the future. The European Commission plans to review and adapt the DPP regulation every three years. SupplyOn will follow developments very closely and expand its services for new product groups and content accordingly.
The Digital Product Passport is due to start — are you prepared?
SCM Insights · Technology

Digital twin: are you ready for new business models?

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!
Digital twin: are you ready for new business models?
SCM Insights

Why Transport Management should be an important component of your digitization strategy

It' no longer a secret that Transport Management can reduce costs and increase delivery reliability. Consequently, more and more SupplyOn customers are using our Transport Management Solution (TMS) to consolidate shipments, optimize routes and automatically check freight invoices.These are just three reasons which have the potential to cut freight costs by more than 10%. But what other reasons also speak for integrating Transport Management into your digitization strategy? (more…)
Why Transport Management should be an important component of your digitization strategy
SCM Insights

Visibility, Analytics & Intelligence: Get full transparency on your supply chain, not just in times of crisis!

Planning, purchasing, logistics and transport management are traditionally separate processes, typically located in different departments. The material planners determine how many parts production requires and order these from the supplier, considering safety stocks. The suppliers operate in their own systems, as does the transport service provider. What, when, in what quantity and at what time is to be delivered usually remains unclear until goods receipt. (more…)
Visibility, Analytics & Intelligence: Get full transparency on your supply chain, not just in times of crisis!
SCM Insights

In times of Corona, how can Track & Trace help to solve the challenges ahead?

The Corona pandemic took us all completely by surprise. Few people expected a "black-swan" event like this. And even the boldest risk scenarios have not foreseen or dealt with the scale of the problem we are currently experiencing.Supply chains have been severely disrupted or even completely collapsed within a short period of time, especially in the automotive and aviation industries. If important suppliers stop producing, warehouses are not working and transports out of "red zones" are not possible, then production cannot be maintained, or only with great difficulty.But not everything has come to a standstill. Where production is still going on, it is now particularly important to know what is happening during transport, how long are the waiting times at the borders, where are the restrictions and what time effects will this have on the delivery. (more…)
In times of Corona, how can Track & Trace help to solve the challenges ahead?