SCM Insights Industry 4.0 – use the potential for success today! There’s no doubt about it: Industry 4.0 – frequently also referred to as the Internet of Things – will become the dominant issue of the next few years. But the subject is full of pitfalls. On the one hand, it is obvious that players must act quickly in order not to be left behind and lose market shares. On the other hand, it is not clear exactly what has to be done. Industry, research and politics are still struggling to find a definition of the subject and the necessary standards. Many companies also fear that implementing Industry 4.0 concepts will require extremely high investments.Some very pragmatic and low-cost approaches already exist, such as those established in the automotive industry, which already link many thousands of companies to each other. This can be the first step for companies in their approaching this subject and in quickly achieving initial successes in terms of increasing efficiency and cost savings. (more…)
SCM Insights Me purchasing, you logistics – the organizational and procedural separation of corporate functions leads to sub-optimum results from the point of view of the supply chain Although the discipline "Supply Chain Management" combines aspects of purchasing and logistics from a procedural point of view, both functions exist in the majority of manufacturing companies as separate organizational units. This fact has generally been taken for granted up to now without questioning the overall aspects.The Supply Chain Management Faculty of the University of Tennessee has taken a closer look at this topic and discovered something interesting "We have met the enemy and he is us …!" (more…)
SCM Insights · Technology Industry 4.0, M2M and the Internet of Things and Services in the automotive industry: The next generation of e-business? Many articles today deal with Industry 4.0 and communication between machines and production facilities across company boundaries.In the related area of the Internet of Things and Services, key players in the automotive industry are hard at work describing application models intended to provide added value, in particular for road users. In terms of information technology, the trends are all about triggering activities through the transfer of data — activities intended to make daily company life as well as daily mobility easier, safer and more pleasant. But just what do these buzz words really mean? (more…)
SCM Insights · Use Cases Continental Automotive leads the way: Full control of inbound transport management Do you have full control of your inbound freight—even before the forwarder has been actually commissioned?Do you know the actual volumes on your individual supplier and plant routes? Do you also know the available service levels and forwarders for these volumes?Do you have streamlined processes in place for checking freight invoices or possibly even a self-billing invoice process for freight costs? Are you able to break down your freight costs and track them to individual materials? Do you know what materials are in which transport and the current location of each transport? Do you have all this in a single system? (more…)
SCM Insights · Use Cases Success factors when introducing a global transport management organization The successful use of a transport management system (TMS) requires an operations model – one that takes a global approach to establishing and controlling global activities in the area of transport management and includes the organization, processes and IT. Without an operations concept like this, any savings resulting from network optimization projects, the introduction of a TMS or the retendering of freight contracts quickly evaporate. (more…)
SCM Insights · Use Cases Mitigating supply risks: Integrating suppliers and transportation service providers using the SupplyOn notification portal to ensure process reliability When it comes to procurement and logistics, all business enterprises at the global level are faced with similar challenges. Procurement and material supply processes are becoming more complex, yet at the same time inventory costs have to be reduced while improving material handling.In order to achieve effective, sustainable improvements in this environment, precisely coordinated, mutually agreed collaboration between all inbound supply chain partners is an absolute must. You must define and codify processes with your suppliers and transportation service providers to minimize supply chain risks.You should ask yourself the following questions: (more…)
SCM Insights · Technology Industry 4.0, M2M and the Internet of Things and Services: What are the challenges? Many studies have examined the opportunities afforded by Industry 4.0, M2M and the Internet of Things and Services. And all of them show that networking aspects of life that are completely independent at this time will yield opportunities that would have read like something from a science fiction novel just ten years ago.But, as I mentioned in my previous post, we need to bear in mind a few important parameters of crucial importance to the success of the technologies we are discussing here:Standardization of the information to be transferred (formats, content) and compatibility of the transmission channels.All the standard activities we are familiar with (and those mentioned above as well) largely use proprietary protocols for data exchange that inevitably involve a certain degree of competitiveness. These protocols are certainly appropriate over the short term and for pilot applications. But: This approach does not work for sustained, large-scale use. A cross-company and professionally operated solution is essential here. (more…)
SCM Insights · Use Cases Realizing savings potential for indirect purchases In many organizations, the optimization of procurement processes and the resulting savings are primarily sought and found in the purchasing of direct materials. Some people still underestimate indirect purchasing and fail to appreciate its significance: “How can I possibly optimize buying a pencil?”But indirect materials involve much more than pencils, pens, and coffee machines. There are far more important and complex areas, such as the whole of the company’s IT equipment, its office furniture and – not to be underestimated – the procurement of all kinds of services.It really is well worth thinking about possible process optimizations in the procurement of indirect materials, which can achieve significant procurement savings. (more…)
SCM Insights · Use Cases Supply bottlenecks in the procurement of spare parts are a thing of the past Especially in the procurement of spare parts, there are often shortages in the supply chain. The main reason is that ordering and delivery processes are usually manual – i.e., once orders are placed by fax or e-mail, they disappear in a black box until delivery. During that time, you can’t tell whether the supplier has received the order or not, whether they are in a position to deliver on time, when the goods will be shipped, or when they are likely to arrive. (more…)
SCM Insights Are you collaborating already, or do you just exchange data? In spite of the continuing spread of the Internet and the associated improvements to companies’ electronic networks, business processes are still largely based on the exchange of unstructured data by e-mail or even fax.This may well surprise us, particularly as the fourth industrial revolution, ‘Industry 4.0,’ was proclaimed some time ago, (more…)
