Home › Blog

Welcome to the SupplyOn Blog

The Digital Product Passport (DPP) is coming – and here’s what you need to know

The European Union wants to promote the circular economy and will therefore gradually introduce the Digital Product Passport (DPP) for various product groups by 2030.It will start in February 2027 with the battery passport, which will then be mandatory for all batteries with a capacity of more than 2 kilowatt hours. This will be followed by a number of other product groups, such as metals, electronics, and tires, but also completely different industries such as the fashion industry will come into focus.Why a digital passport for products?In the future, digital product passports will ensure that all relevant product data is transparent and accessible to all parties involved. Unique product identification allows consumers and service providers in the value chain to find comprehensive information, such as:Origin of materialsManufacturing processesChemicals usedRepair options and recycling informationCO₂ footprint Proof of compliance with legal requirementsTo ensure that this information is available and accurate, companies along the supply chain should collect all necessary data and pass it on to their customers.How can the DPP be implemented in practice?In the future, products will have a QR code or other unique identifier, such as an NFC or RFID chip, in the DPP. These can be read via the internet. The data should be available locally from the manufacturers (or companies they've hired). The data is divided into free and public information, such as operating instructions or videos, technical declarations of conformity, the origin of the product, or information on circularity in the material cycle. In addition, there will also be paid services, such as predictive maintenance or spare parts orders. A variety of payment models are conceivable here, from a one-time purchase to licensing.With the introduction of the DPP, it will become necessary for companies in Europe – and probably also all companies that supply to Europe – to exploit the full potential of digitalization. The DPP will contain more than 150 data points, which can no longer be maintained or validated manually.The DPP for batteriesThere is not yet a single DPP, but the definition is underway and has already been largely completed for the battery passport. Currently in pole position for implementation are the administration shell (the digital twin, see IEC 63278-ff) and the digital type plate (DNP4.0 = Digital Nameplate, see IEC 61406-1/-2). The DPP is intended to be particularly SME-friendly, but even the definitions of the standards are complex, and it will certainly not be enough to create standard interfaces for suppliers and producers. Currently, there are no systems that provide or record the data and generate a DPP with all the necessary data from a BOM, for example.SupplyOn has therefore been involved in various committees and international support projects relating to the DPP for some time. At the same time, SupplyOn is working on solutions to enable companies to meet the legal requirements for collaboration securely and cost-effectively. The fact that more than 140,000 manufacturing companies worldwide are already networked via the SupplyOn platform greatly simplifies the implementation of the DPP in this regard.From "nice-to-have" to "must-have"The Digital Product Passport is no longer an option, but is becoming a key instrument for sustainable transformation and legally compliant production in industry. Companies that invest early in structured product data and digital infrastructure can secure strategic benefits – not only in terms of compliance, but also through new business models and stronger customer loyalty.

SCM Insights

Four reasons to reshore and diversify your suppliers

In 2025, global trade has gone from unpredictable to adversarial. Dramatic tariff peaks and valleys on Chinese goods. Painful U.S.–EU duties and countermeasures. Pendulum swings on steel and aluminum levies. And volatile conflicts in Europe, the Middle East, and Asia all at once.Procurement and supply chain executives understand that diversified sourcing is now a strategic imperative. But simply shifting away from China or reconfiguring Tier-1s in Mexico won’t make your supply chain more resilient. For that, you need the right digital infrastructure.SupplyOn’s platform empowers intelligent reshoring, nearshoring, and supplier diversification without trading one crisis for another. It enables you to react fast and manage whatever comes next. Here are four reasons to get started now. 1. Reshoring momentum is unavoidable but complexDid you know that 81% of multinationals are actively reshoring? For example, EU manufacturers are ramping up nearshoring in Central and Eastern Europe to lower their risk exposure overseas and to simplify logistics.But the real cost of diversification is coordination. It’s identifying, assessing, and onboarding suppliers fast. Avoiding compliance gaps. Managing unfamiliar logistics lanes. And making sure quality and delivery don’t suffer during the transition.Without end-to-end visibility and automation, the cure can be worse than the disease.2. Diversification doesn’t have to be difficultSupplyOn offers the only multi-enterprise SaaS platform that supports the full lifecycle of reshoring and supplier diversification, from initial risk identification to last-mile execution. Here’s what our solution offers.Supplier Management: Qualify new suppliers in days, not monthsTap into a pre-integrated network of 140,000+ qualified global suppliers.Use AI-automated surveys to collect relevant supplier data.Cut onboarding effort by up to 60%, while maintaining data quality and compliance.Result: You don’t just add suppliers; you de-risk your supplier portfolio.Source-to-Contract: Award based on real landed costUse tariff information (baseline, country-related, or product-based) and logistics costs to model the true total cost of ownership.Set up and run e-sourcing events in record time.Fully integrate quality assurance into the sourcing process.Result: Better sourcing decisions. Lower exposure. Clear audit trail.Supply Chain Collaboration: Get everyone on the same pageOne portal for all suppliers, from Tier-1 to Tier-N. Manage forecasts, POs, ASNs, and invoices in one place.Auto-detect delivery delays, missed forecasts, and compliance gaps early.Sync with your ERP system and avoid spreadsheet chaos in transition periods.Result: Operational continuity, even as your supply base changes.Transport & Logistics Management: Avoid new blind spotsPredictive ETA, track & trace, dock/slot scheduling, and freight cost allocation.Smart rerouting when Red Sea risks, port strikes, or customs issues arise.Forecast of volumes so you’re first in line to book container capacities on critical lanes.Result: You don’t replace one bottleneck with another.Risk Intelligence: Make risk visible before it becomes costGeo-risk cockpit visualizes hotspots (tariffs, weather, conflict zones) in near real time.Combine internal POs and capacity data with external feeds.Get predictive alerts before disruptions cascade.Result: You switch from being reactive to proactive and avoid many risks upfront.3. Reshoring provides real ROI (when done right)Smart supply chain executives avoid these five mistakes:Not involving quality and logistics early. Sourcing is just the tip of the iceberg.Ignoring Tier-2 risk. Your Tier-1 may look local, but their sub-suppliers may not be.Underestimating onboarding friction. Paperless, real-time collaboration is a prerequisite.Over-indexing on cost, ignoring resilience. A 5% cheaper supplier is worthless if they cannot comply to requirements.Treating diversification as a project, not a process. Supply chains evolve. So should your network.4. Diversification generates results that move the needle70% faster sourcing cycles via automated e-auctions and smart scoring.20% reduction in process overhead through unified collaboration workflows.15% improvement in on-time delivery by eliminating handoffs and transport blind spots.90%+ invoice automation means no more slowdowns or documentation issues.

SCM Insights

“Success as a Service”: Supplier Onboarding at SupplyOn

Supplier Onboarding is the first and most important step for successful digital collaboration with your business partners via SupplyOn. But what does it take to get started smoothly? Here we show you in words and pictures how we successfully bring our customers and their suppliers on board through expertise, communication, and experience.Why Supplier Onboarding is crucialIntroducing new processes via a digital platform is anything but trivial, but it is feasible. With our approach to supplier onboarding, you can master the complexity. Our goal is to integrate suppliers into our platform efficiently, reliably, and sustainably. The key to this lies in close cooperation with our customers. A successful onboarding project thrives on partnership-based coordination between the customer and our experienced team. Behind every project is not only a team of experts, but also a well-stocked toolbox that makes onboarding as efficient as possible.Communication as a success factorWe work with our customers to develop customized communication strategies to inform suppliers, convince them of the benefits, and get them excited about using the platform.After all, without the active participation of suppliers, there is no added value for the customer.Technical excellence and personal supportA smooth onboarding process requires precision. The quality of the supplier master data is crucial—only with up-to-date and correct contact details can a connection to suppliers be established. In addition, our dedicated call center team actively supports suppliers during the registration process and helps to overcome any obstacles at an early stage.More than just technical connection: Enablement as a goalOur claim goes beyond purely technical onboarding. We see supplier onboarding as “enablement” – in other words, empowering users to use the platform efficiently and independently. To this end, we provide central information portals that bundle all important project information, instructions, training, information events, and explanatory videos. These portals serve as a central hub during the onboarding phase – a real added value for everyone involved.The human factor countsEven complex projects can be implemented successfully when a structured approach meets experience – and when the human factor is not neglected. This is exactly what the SupplyOn onboarding team stands for: technical excellence, strong communication skills, and always with a personal touch.The video featuring this articleJoin us in the video “Supplier Onboarding” for exclusive insights into our daily work.

Inside

Inside our in-house User-Centered Design training – How SupplyOn supports its employees and what it does for them

At SupplyOn, supporting our employees doesn’t just mean offering benefits, it means empowering them with the mindset, skills, and tools they need to grow, collaborate, and make a real impact. One way we do this is through hands-on, cross-functional training initiatives like our in-house User-Centered Design (UCD) training.Equipping Our People to Think User-FirstThe UCD training, created and led entirely by our in-house UX team, is more than a session on design. It’s an investment in how our people approach problem-solving. By guiding participants through real-life scenarios, the training helps teams from Consulting, Marketing, and Supplier Onboarding learn how to:Identify genuine user needs instead of reacting to vague feature requestsMap out user journeys to uncover pain points and opportunitiesDefine clear, human-centered requirementsCollaborate more effectively across teams by aligning around user goalsThis approach gives our employees practical tools to tackle their daily challenges – whether it’s onboarding suppliers, building campaigns, or improving customer processes – with a fresh, user-first perspective.Creating Learning Spaces That ResonateWhat sets this training apart is its authenticity: it’s not delivered by an external coach but by a colleague who understands our day-to-day realities. This makes the experience more relatable and the lessons more directly applicable.And the impact is clear:“I was surprised to see how much work design actually is – way more than just drawing nice pictures.”“This gives us a great baseline to start changing how we approach problems.”“I want to bring this into practice and think more often from our users’ perspective.”These reflections show just how transformative a well-designed internal learning experience can be.Fostering a Culture of Growth and CollaborationWith this initiative, SupplyOn is sending a strong cultural signal:We believe in learning from each other, we prioritize collaboration that crosses team boundaries, we empower our people to challenge assumptions and improve the way we work – together.This kind of internal development strengthens not only our business, but our people. It helps every team member feel equipped and encouraged to grow in their role.Looking AheadWe’re excited to see more teams participate in future sessions. Because when our employees understand our users better, they create better solutions and that’s a win for everyone.Want to learn more about UCD? Usability and product design at SupplyOn – it is all about our users

SCM Insights

Geopolitical risk: Steer your supply chain through turbulence

Trade tensions, export bans, and regional conflicts are rewriting the rules of global supply chains. One spark, whether a tariff, a blockade, sanctions, or a new law, can derail production, inflate costs, and fray customer trust overnight.Companies must be ready to shift suppliers and adapt their cost structures quickly. SupplyOn’s AI-driven platform empowers you to steer securely through geopolitical turbulence while keeping costs under control.Volatility and uncertainty can lead to disruptionCurrently, companies involved in global trade must navigate shifting geopolitical risks, as well as new regulations:New U.S. tariffs could inflate production costs by 10–20%.Chinese-Taiwan tensions could halt semiconductor shipments and crash the automotive and tech sectors.Armed conflicts in Ukraine and the Middle East are pushing up prices, delaying shipments, and throttling availability across industries.Compliance risk for new regulations such as CBAM could damage your reputation and result in penalties.Such risks can lead to shutdowns at Tier-1 or Tier-2 suppliers, or high freight rerouting fees. Last-minute sourcing changes can add millions in unexpected costs.Build strong and resilient supply chainsSupplyOn’s platform is designed to help you detect risks early and respond fast. Here is how the four core solutions help you anticipate and mitigate geopolitical risks.Supply Chain Collaboration (SCC)Full transparency into supplier activities, logistics status, and regional instability enable you to stay informed and agile.Gain real-time visibility from forecast to order execution.Get AI-driven exception alerts for disruptions or delivery delays.Eliminate paperwork with digital Advanced Shipping Notices (ASN), customs declarations, and invoicing workflows.Source-to-Contract (S2C)Flexible sourcing and contract tools let you respond fast to market shifts, tariffs, or compliance changes.Adjust sourcing fast by launching new e-sourcing events in minutes.Use AI for scoring suppliers on cost, stability, compliance, and geopolitical exposure.Accelerate negotiations through live e-auctions to secure competitive terms with reduced risk.Supplier ManagementVisualize global supplier risk and monitor deeper tiers in your network.Use geo-risk cockpits to map exposure to conflict zones or sanction areas.Achieve n-Tier visibility to uncover conflicts or risks in the sub-tiers early.Integrate external data (such as from Dun & Bradstreet) to have a clear picture of suppliers’ financial health.Transport ManagementGain real-time insights to avoid delays and cost spikes from shipping disruptions.Predict ETAs and get alerts before delays impact production.Reroute shipments instantly when risk hot spots emerge, with AI proposing alternative routes.Track shipments live to reduce customs dwell time and document errors.Detect freight cost anomalies, including unexpected tariffs or surcharges.Take the wheel to outmaneuver riskIn a world where tariffs can spike overnight and conflicts can disrupt key shipments, you need to anticipate what’s around the corner. SupplyOn’s platform delivers real-time data and AI-driven alerts. Customers report that they can cut response times by up to 30% and reduce logistics costs by 20%.SupplyOn also simplifies ESG reporting. It gathers CO2, CBAM, and PCF data from suppliers, sends reminders, and prepares reports for EU submissions. This helps you stay compliant and avoid fines without extra workload.Why SupplyOnWith 300 million ordered parts processed daily, SupplyOn supports the largest industrial network of its kind. It is built to connect seamlessly with ERP systems such as SAP S/4HANA or Oracle. Multilingual support teams ensure fast adoption.More than 200 major manufacturers and network of 140,000 supplier rely on SupplyOn. Our success-as-a-service model goes beyond software to deliver measurable results and continuous improvement.

Use Cases

Achieve clarity, control, and compliance in purchasing with Supplier Lifecycle Management

Times are tough for procurement. More risk, more rules, less time. Strategic buyers are contending with global tariff swings, geopolitics in crisis mode, shortages of critical raw materials, and rising ESG expectations. To keep up with changing circumstances, they have to actively manage and continuously adapt their supplier base.Besides identifying and qualifying reliable suppliers, procurement teams must uncover and mitigate risks early. Also, they need to maintain full control over supplier approvals and classifications, all while ensuring traceability and compliance.With SupplyOn Supplier Lifecycle Management, buyers have a clearly structured, automated process that streamlines supplier management. It generates tangible added value for purchasing, quality, risk management, and compliance teams.The SupplyOn process explained step by step1. Identify and pre-qualify suppliersSupplyOn is the leading global supplier network for the automotive, aerospace, and manufacturing industries, connecting more than 140,000 companies. You are able to efficiently locate suitable business partners or seamlessly onboard existing contacts.Your benefit: Fast, targeted supplier search based on verified dataRather than starting from zero, you gain access to a broad and verified network within the SupplyOn supplier community.2. Use customized qualification profilesQualification requirements vary by product group, region, division, or risk level. Supplier Lifecycle Management lets you define individual qualification profiles. Then it automatically creates questionnaires, verification documents, checks, and evaluation criteria, among others. All that without involving IT or having to search manually for up-to-date templates.Your benefit: An automated and audit-ready qualification processEveryone involved in the qualification process evaluates suppliers based on standardized criteria. This ensures consistent, transparent decisions. In case circumstances change, you can easily adjust or adapt your criteria.3. Recognize risks at an early stageThrough the structured, context-sensitive process, the right information is automatically requested based on supplier type, location, and product group. This lets you identify and mitigate risks, whether financial, quality-related, or ESG-driven, before they can disrupt operations.Your benefit: Informed supplier selection with minimized riskRisks are systematically uncovered and evaluated. You can select reliable and strategically aligned suppliers based on solid data.4. Ensure cross-departmental cooperationTeams from procurement, quality, sustainability, risk management, and other business functions collaborate within a shared, role-based system. Tasks such as audits, risk assessments, and certificate reviews are automatically assigned, then deadlines are tracked and results centrally documented.Your benefit: Clear responsibilities and smooth coordinationEveryone knows what to do and when. You eliminate duplication and avoid communication gaps.5. Apply structured approvals and strategic classificationsOnly authorized users can approve suppliers and assign strategic classifications, such as "preferred supplier" or "new business on hold." Any changes, such as issues related to ESG or performance, can be immediately reflected in the classification status.Your benefit: Confident decisions and traceable complianceApprovals and classifications are based on accurate, reliable data and aligned with the company-wide sourcing strategy.6. Maintain central data in the supplier profileAll relevant supplier information, including qualifications, evaluations, certificates, approvals, and classifications, is stored in a central digital profile. The data is always up to date and fully integrated across systems.Benefit: Full transparency and control over supplier dataYou no longer need to search through emails or spreadsheets. All supplier data and performance reports are readily accessible in one place.Conclusion: Structure leads to successSupplyOn Supplier Lifecycle Management is more than a software tool. It provides a tried-and-tested, structured and strategic process that ensures secure supplier selection, mitigates risk, and breaks down internal silos.As members of a global network, potential suppliers become trusted, long-term partners who are transparent, compliant, and secure.

SCM Insights · Technology

Illuminate your supply chain: Discover the power of SupplyOn Supply Chain Locations

The biggest risks are the ones you don’t see. In today’s complex and volatile global market, companies are grappling with issues such as geopolitical tensions and strict regulations. At the same time, unexpected disruptions often hide deep within multi-tiered supplier networks.Supply chain transparency has never been more critical - or more elusive. Many risks go unnoticed until it’s too late. But what if you could illuminate your entire supply chain? Not just Tier 1 suppliers, but also further down the supply chain, where individual components are processed and assembled.SupplyOn Supply Chain Locations is a pioneering solution that enables companies to make their entire value chain transparent and manageable, from the smallest production steps to finished components.The challenge: You can't manage what you can't seeMany organizations today suffer from a fundamental visibility gap. They know who their Tier 1 suppliers are. But beyond that? It’s often a black box. Risks often remain undetected in the sub-tiers.Common risks in manufacturing supply chains include:Regional concentrationSingle points of failureSub-tier supplier capacity issuesRegulatory requirements (for example, LkSG, UFLPA, CSRD)Without a clear line of sight into the full production process and all entities involved, companies struggle to trace quality issues, assess ESG performance, or ensure compliance.The solution: Map your manufacturing realitySupply Chain Locations enables you to display the entire manufacturing footprint, multi-level deep. It provides business-critical visibility by enabling you to:Map the full supply chain network, multi-level and location-specificIdentify manufacturing locations and work steps beyond Tier 1Collaborate efficiently with suppliers through built-in SupplyOn platform integrationCollect data in a structured, standardized format for easier traceability and internal integrationSemiconductor manufacturing, for example, involves numerous distinct, geographically dispersed steps. From wafer sorting to backend testing, or sub-assembly to final packaging, Supply Chain Locations illuminates every touchpoint.Data collection: A structured, scalable approachHaving accurate, comprehensive data informs you of potential risks tied to specific geographies or dependencies. Through flexible templates and multi-level data inquiries, businesses can capture:Supplier identities on all tier levelsManufacturing site locations (BoM structure-driven)Specific work steps at each site (e.g., grinding, assembly, finishing)This data flows seamlessly into internal systems or is utilized across other SupplyOn solutions, such as Risk Management, Sourcing, and ESG, creating a truly connected supply chain management ecosystem.Key benefits: See more, move faster, improveCritical data is shared across functions to anticipate potential events and improve reliability. Unprecedented visibility: Gain a complete picture of your manufacturing network, identifying entities and activities you previously couldn’t see. Proactive risk management: Spot concentration risks and geopolitical exposures. Identify single points of failure before they become disruptions. Regulatory compliance, simplified: Comply with LkSG, UFLPA, and CSRD more effectively by leveraging accurate, traceable supply chain data. Enhanced quality management: Trace product quality issues directly back to specific processes or sites—no more guesswork or fragmented analysis.Trusted foundation: Integrate and collaborateSupply Chain Locations benefits from the robustness of the SupplyOn platform. Here is where technology and collaboration join forces, providing you with:Secure, multi-tenant architectureVast existing supplier network, with many already onboardDeep integration with sourcing, procurement, and quality systemsEfficiency through data standardizationYou can also leverage the SupplyOn platform for efficient communication and data transmission by suppliers. Supplier collaboration is the key to building resilience, ensuring compliance, and enhancing quality control.Ready to illuminate your supply chain?Risk does not stop with Tier 1. So don’t be left in the dark. Avoid surprises with SupplyOn Supply Chain Locations. Gain the visibility you need to make better decisions, faster. Build strategies that are grounded in real, actionable supply chain intelligence.

Inside

Supply Chain Digitalization Consultant at SupplyOn: Taking responsibility and shaping the future of the supply chain

An interview with Christian Poetzel, Manager Consulting Supplier Management at SupplyOnThe role of digitalization consultant is more important today than ever before - especially in supply chain management. At SupplyOn, exciting career paths are opening up for people who want to actively shape the digital transformation of global supply chains. Christian Poetzel, Manager in the Consulting division, gives an insight into his day-to-day work, describes the skills required in this role and shows what development opportunities are open to consultants at SupplyOn.What does your everyday life as a Manager in Consulting look like?Christian: We support companies in digitizing their supplier relationships and making them more sustainable. My team and I help to make data in complex supply chains transparent and to optimize processes in a targeted manner. Together with our customers, we create the basis for greater efficiency and stability in their supply chains.My job as a manager is to create the framework conditions so that my team can successfully implement projects. This includes analyzing processes, identifying potential and implementing our digital software solutions together with our customers.No two days are the same: sometimes the focus is on internal coordination, sometimes we work closely with our customers on strategic projects. The focus is always on the question of how we can translate specific requirements into tailor-made digital solutions. The variety of topics makes the work not only varied, but also very exciting.What key skills does a consultant need in the field of supply chain digitization?Christian: Clear, structured communication and a good feel for different perspectives are important skills - both internally and externally. Close cooperation with our customers requires us to understand complex requirements and present them in an understandable way. It is important to develop viable solutions in a team and with the customer.In addition to strong communication skills, personal responsibility and a solution-oriented approach are required. The digital transformation in supply chain management is constantly evolving. Anyone who is open to change and enjoys learning new things is in good hands with us. We encourage independent action and expect our consultants to take responsibility - right from the start. Maria-Pia Drago and Xiurong Cai, for example, show what this looks like in everyday life in their experience report “Taking Ownership”.At a professional level, you need a certain affinity for IT and experience in project management. Our daily tasks include planning, coordinating and implementing our digital solutions for international customers. Structured process thinking is also important in order to analyze and sustainably improve complex supplier processes. These skills help us to drive forward the digital transformation of our customers in a targeted manner.What career paths does SupplyOn Consultants offer in the field of digitalization?Christian: At SupplyOn, there are many opportunities to actively shape your own career path. If you start as a Consultant Digitalization, you can specialize in a specific area - such as transport management, supplier relationship management or quality management. These specializations offer the opportunity to delve deeper into a specialist area and establish yourself as an expert.With increasing experience, the tasks and responsibilities grow. Many colleagues initially take on smaller projects or sub-projects and later manage comprehensive programs for our customers. The transition to a management role is often gradual - as was the case with my colleague Kathrin. She started as a working student, later managed several projects in parallel and is now a manager at SupplyOn.There are exciting global projects for anyone looking for international collaboration. Working closely with global teams is part of our everyday life. It is important to us that everyone finds an individual path that suits their own strengths and goals - whether in an expert role or as a manager. In any case, SupplyOn offers the opportunity to actively shape the digital transformation and take on responsibility.Why is SupplyOn an attractive employer for consultants in digitalization?Christian: At SupplyOn, we create an environment in which thinking and shaping are expressly encouraged. Our consultants make decisions where their professional expertise lies - in the team and directly in the project. This gives them room to contribute their own ideas, develop solutions and implement them together with our customers.Our collaboration is based on team spirit and co-creation. The focus is on our customers' requirements and the development of sustainable solutions. This opens up new perspectives and the opportunity to continuously develop your own skills.At the same time, we attach great importance to individual development. Whether through targeted further training, new tasks in a different role or the next step towards leadership - we encourage and support you on your path. Those who work for us have the opportunity to really make a difference.What appeals to you most about your leadership role?Christian: I am particularly motivated by the opportunity to accompany and support my team. It is an enriching task to create a framework in which people can develop their skills and take on responsibility. I find it fulfilling to see how colleagues take on new tasks and contribute their own ideas.I also love the impact we have with our work. We support our customers in making their supply chains more efficient and creating transparency - and thus make a tangible contribution to their business success. The variety of projects, collaboration with international teams and the dynamics of digital transformation ensure that no two days are the same. This mix of strategic responsibility, teamwork and variety is what makes this role so appealing to me.You can find more insights into leadership and responsibility here: Vibrant leadership culture

SCM Insights

Reduce costs: optimize production timing and quantities depending on demand and capacity

In today's competitive economy, the efficient management of production processes is a key success factor. Companies are faced with the challenge of planning production times and quantities in such a way that they both meet demand and minimize costs. But how can this balancing act be achieved?In this article, we look at how matching demand and capacity is the key to cost optimization and how our software solution with its powerful simulation and optimization feature makes a decisive contribution to this.The basics: Why are production timing and quantities so important?A company's production is closely linked to several factors: Demand, available capacity, storage costs and delivery times. Inefficient planning can have serious consequences:Overproduction leads to increased storage costs and a risk of write-offs if products become obsolete or are not sold.Underproduction, on the other hand, causes supply bottlenecks that result in lost sales and possible damage to customer relationships.Optimizing production timing and quantities helps to minimize these risks and at the same time reduce costs along the entire value chain.Key factors for optimization1.Demand forecastThe basis of all production planning is a precise forecast of demand. This includes analyzing historical sales data, taking seasonal fluctuations into account and observing market trends. Modern technologies such as machine learning and big data can make a significant contribution here by identifying patterns and correlations more quickly and accurately.2.Capacity managementProduction capacity is often limited by resources such as machines, personnel and materials. Companies must ensure that they utilize their capacities optimally without risking overtime, expensive production relocations or high machine wear and tear.Flexible capacity models - such as shift systems or external production partners - offer scope to cushion peaks in demand.Cost factors also play a decisive role.Our solution: Simulation feature for flexible "what-if" analysesThe complexity of modern production planning is often complicated by uncertainties and dependencies in the supply chain. Our software solution addresses this problem with an integrated simulation feature that offers customers and suppliers alike enormous added value.With this feature, companies can flexibly and efficiently carry out "what-if" analyses to evaluate possible scenarios:How does a sudden increase in demand affect the number of my alerts?What happens if a supplier delays a delivery?What production quantity minimizes the total costs for a given stock limit?How critical would a temporary reduction in capacity be?The simulation provides answers to these questions in real time. That way you can:Recognize bottlenecks at an early stage and take action before they occur.React flexibly to external influences, such as seasonal fluctuations or market changes.Increase efficiency by finding the optimal balance between production, storage and transportation costs.AI-supported suggestions for optimizing production planning can almost completely relieve you of the manual effort of demand and capacity planning.The interactive visualization and the ability to share simulations with your partners bring all stakeholders together to make informed decisions and jointly develop an optimally coordinated strategy.Based on these parameters, our tool determines optimized production planning and even provides insights into the basis on which decisions were made.

SCM Insights

Key takeaways from the webinar: How Bosch Rexroth runs modern Demand Capacity Management (DCM) in 2025

In our recent webinar, "How Bosch Rexroth runs modern Demand Capacity Management (DCM) in 2025," key experts from Bosch Rexroth provided comprehensive insights into managing today's increasingly complex and volatile supply chains. Here are the extensive highlights from the session, which offer valuable lessons and practical strategies for other manufacturing companies:1. Comprehensive Integration of Digital PlatformsBosch Rexroth emphasized the importance of fully integrating digital platforms across their entire operational ecosystem. By employing these integrated systems, Rexroth has achieved seamless real-time collaboration with global suppliers, thus gaining complete visibility and control over their supply chain. This integrated approach addresses critical challenges such as data fragmentation, inconsistent supplier communication, and slow decision-making, enabling manufacturers to swiftly adapt to changing market demands and conditions.2. Transparency and Analytics for Enhanced Decision MakingBosch Rexroth demonstrated their sophisticated use of transparency and predictive analytics powered by SupplyOn’s advanced tools. Predictive analytics enables fast demand simulation, proactive capacity management, and the ability to swiftly respond to potential disruptions. Other manufacturing companies facing uncertainties such as demand volatility and unexpected supply chain interruptions can leverage predictive analytics to anticipate changes, optimize resource allocation, and strengthen overall supply chain resilience.3. Agile Supply Chain ProcessesA significant challenge highlighted by Bosch Rexroth was the difficulty in maintaining responsiveness amid unpredictable demand changes and supply disruptions. To address this, they have developed highly agile supply chain processes underpinned by robust and continuous supplier collaboration. By emphasizing flexibility, Bosch Rexroth has successfully managed unexpected fluctuations, avoiding inventory shortages and excesses, thus ensuring customer satisfaction and operational efficiency. Manufacturers can adopt similar agile methodologies to enhance responsiveness and flexibility in their supply chains.4. Real-Time Supplier Collaboration with Capacity TrackerBosch Rexroth specifically detailed their strategic use of SupplyOn’s Capacity Tracker, a crucial tool for achieving real-time supplier collaboration and capacity monitoring. This innovative tool allows Rexroth to identify potential bottlenecks early, proactively manage supplier performance, and significantly reduce lead times. Other companies can implement similar real-time tracking solutions to improve supplier responsiveness, minimize disruptions, and achieve more reliable forecasting.5. Automation and Process OptimizationBosch Rexroth extensively highlighted the importance of automation in overcoming labor-intensive, error-prone manual processes. By automating routine operations, Rexroth has significantly improved operational efficiency, reduced human error, and enhanced overall process accuracy. Automation frees their teams to focus on strategic initiatives, driving innovation and long-term improvements. Manufacturers should view automation not merely as a method for cutting costs but as a strategic enhancement for operational effectiveness and competitive advantage.Additional Challenges AddressedDuring the webinar, Bosch Rexroth also discussed several additional challenges faced in modern supply chain management:Data Complexity and Integration: Managing disparate data sources and integrating them effectively was identified as a common struggle. Rexroth’s digital integration strategy demonstrates the importance of centralized data management.Supply Chain Visibility: Gaining complete visibility throughout the supply chain is essential but often difficult due to fragmented systems and disconnected suppliers. Bosch Rexroth's implementation of real-time tracking and analytics provides a clear example for other manufacturers.Resource Allocation: Efficient resource allocation in response to fluctuating market conditions requires sophisticated analytics and predictive capabilities, which Rexroth successfully addresses through advanced analytics.What Other Manufacturing Companies Can LearnManufacturing companies aiming for excellence in supply chain management can significantly benefit from adopting Bosch Rexroth’s comprehensive and proactive strategies. Integrating digital platforms, employing predictive analytics, fostering agility, enhancing real-time supplier collaboration, proactively managing international trade risks, and leveraging automation collectively lead to tangible outcomes. These include improved forecast accuracy, reduced lead times, increased operational efficiency, and measurable return on investment.

Welcome to the SupplyOn Blog

The most popular articles at a glance

Increasing the resilience of global supply chains through holistic approach

Focus on innovation: an interview with board member Dr. Stefan Brandner

Leonardo extends AirSupply to the entire supply chain and kicks off second phase of Leap

Maximize ROI with AI-driven supply chains