From solo acts to a Symphony: How data orchestration allows the entire supply chain to harmonize
In an orchestra, it’s the conductor’s role to interpret the score that is being performed, set the tempo and arrange it through gestures to the individual musicians. In supply chains, the orchestrator plays a similar role. They are interpreting an OEMs network of plants and dealers to develop viable logistics networks, identifying the frequency – or tempo – of where, when and how products are moved, and communicating the information at the right time to the right people to allow for more informed decision making. With the demand for data continuing to grow, the ability to aggregate and orchestrate data across the supply chain is what will allow OEMs to better manage their supply chains.
Orchestrating data across the entire outbound supply chain
Imagine a global manufacturer of cars or heavy equipment, with a global production and retail network that includes countless suppliers and service providers whose performance needs to be constantly monitored and measured. Managing all these moving pieces can be challenging, as one decision can impact other aspects of operations – even if not immediate. To manage these increasingly complex and frequently disrupted supply chains, having access to the right data across multiple modes of transportation and carriers, and being able to orchestrate it to make better informed decisions is critical to meet production and sales targets.
“OEMs want the ability to see a holistic view of their entire supply chain – regardless of geography, carrier, mode of transportation or type of product that’s being shipped – but they also need to see how individual aspects of their supply chain are performing,” says Magnus Ödling – VP Business Development, Digital Supply Chain Solutions. “This are the types of information that they need to can respond to disruptions and measuring performance, beyond just being given access to their own data.
”Orchestrating supply chain data means collecting, aggregating, visualizing and “making sense” of data that provide all of the necessary insights for a wide range of roles within an OEM and other suppliers and services providers across the network, but also building the necessary infrastructure that can receive and synthesize all of the data points.
Identifying the right data to guide more informed decision making
“Providing complete and accurate information is the foundation for orchestrating our customers’ supply chains,” says Mikael Bjørklund – COO, Digital supply Chain Solutions. “In order for individuals in key roles to understand how their decision making can impact performance or address deviations, it is crucial to have information that spans across networks, carriers and service partners.
Data points range from milestones and events along the supply chain, estimated times of arrival, inventory quantities, and cost and emission related information. For example, a global supply chain manager at a construction OEM needs a custom dashboard to see the performance of all carriers and partners from factory to dealer across each part of the network.
Similarly, someone at a dealership can have a different view of just their pipeline of vehicles into their dealership all the way from the order stage, the ETA for vehicles in route to that same dealership, and an accurate, and up-to-date count of a vehicles already delivered. This allows a dealership to take decisions that supports them in meeting their sales targets, using different data points than an OEM supply chain manager would use to evaluate cost-effectiveness of their suppliers.
“These insights give customers the ability to know exact inventory levels at a particular location while also having a clear picture on what units are inbound, what additional work needs to be done to them before they are dispatched, and if there are any delays or exceptions that need to be managed,” says Mikael.
Mikael Bjørklund – COO, Digital supply Chain Solutions
Creating a more collaborative approach to managing supply chains
“Seeking out root causes is always better than treating symptoms. What may look on the surface as a simple failure to meet a KPI may have a much more nuanced story behind it,” says Magnus.
As OEMs look at their network holistically, rather than a series of coordinated activities performed by several different providers, they can foster a more collaborative mentality with a common understanding of what’s happening throughout the supply chain beyond each supplier’s individual responsibilities.
“The desire is to create a feeling of trust and transparency across all players involved in the network,” adds Magnus. “While it may be an untraditional practice to share data with a third party, is now a driving force in enabling better predictability and performance of supply chains around the world.”
