SCM Insights Digitalization is not an end in itself. A commentary Christian Kastl October 5, 2017Last updated: March 4, 2021 Share on Facebook Share on LinkedIn Share on Xing Share via email With digitalization, the claim is far behind reality. However, it is essential to push ahead with digitalization in a targeted manner, especially with regard to cross-company cooperation.Wherever you look, “digital” is THE overriding theme. Digitalization is not particularly new and by no means simply a future scenario for the years 2020 to 2030.No, the digitalization of tasks and processes has been around for quite some time now. And there is still some homework left to be done. Because, unfortunately, the business world is not yet as digital as it could – or should – be. There is still room for improvement, particularly when it comes to cross-company collaboration. Fax, phone and email are nonetheless commonly used for sending orders, contracts, delivery and stock details, and other information.EDI is certainly not new as a standard for sharing just such information. The automotive and the aerospace industries have been collaborating with suppliers via EDI for many years now. And that doesn’t just apply to manufacturers working with their Tier 1 suppliers. It extends right down to the very start of the supply chain.Unfortunately, this is not the case in other sectors, while in many places the topic of digitalization is, of course, gaining momentum.At the beginning there is digitalization, …What is lost in all the hype surrounding digitalization is that:Digitalization is not an end in itself.In fact, digitalization of the supply chain is above all about increasing security of supply – the reliable supply of all required production materials.Of course this requires transparency. Transparency over whether the supplier can deliver the goods in the desired amount and quality by the stipulated deadline. This transparency can only be achieved via direct electronic data connecting of ERP systems – as with EDI.… at the end a satisfied customer.In turn, high transparency vis-à-vis the supply situation significantly decreases the risks of making a delivery promise to customers that cannot be kept. This increases customer satisfaction. And, ultimately, everyone profits.Foundation for the digital futureDigitalization of the order and delivery process is thus the basis for all further action. It is only a basic process, but a fundamental one. The IoT and sensor data can subsequently be transmitted over it.Sensors will never communicate by fax or email.Instead, they require an electronic highway á la EDI. And sensor data will become increasingly important in the supply chain of the future. It will allow components, for example, to be clearly traced, deliveries to be monitored by Track & Trace and test and operating data to be analyzed.The digitalized supply chain also lays the cornerstone for another important topic of the future: Predictive Maintenance.
When the Supplier Network Becomes Part of the SolutionFor large corporations, supplier data has become one of the most critical foundations for resilient, compliant and future-ready supply chains. Whether it is product information, material data, sustainability requirements, regulatory reporting or customer-specific data requests – suppliers are increasingly asked to provide more information, more often, and in more detail.But the question is not only:…Learn more More details about When the Supplier Network Becomes Part of the Solution
Rethinking the Digital Product Passport: Why SupplyOn Is Making Material Master Data a Strategic BackboneGlobal supply chains are at a turning point. What was long considered an operational discipline is increasingly evolving into a data-driven management task under regulatory pressure.Sustainability requirements are becoming increasingly stringent, data requirements are growing exponentially, and companies must manage both across complex, international supplier networks. At SupplyOn, we are observing this transformation across all…Learn more More details about Rethinking the Digital Product Passport: Why SupplyOn Is Making Material Master Data a Strategic Backbone
SupplyOn partners with ServiceNow: Closing the gap between internal procurement and supplier collaborationMany companies today have their internal procurement processes well under control: requirements are recorded digitally, approvals run through workflows, and escalations are regulated. And yet, where the supply chain begins, there is often a disconnect: collaboration with suppliers continues to rely on emails, PDFs, Excel spreadsheets, or isolated portals. This costs time, leads to errors,…Learn more More details about SupplyOn partners with ServiceNow: Closing the gap between internal procurement and supplier collaboration