Supply chain control towers are pivotal hubs that harness technology, organizational structure, and processes to gather and utilize data, offering a panoramic view of the supply chain. This enhanced visibility aids in making informed decisions that align with strategic goals, providing analytical support, and facilitating collaborative execution of processes both within and outside the organization.
A supply chain control tower is a centralized platform that leverages advanced technology and processes to provide comprehensive visibility and analytics for strategic decision-making. It enables businesses to respond proactively to supply chain events, optimize operations, and collaborate effectively with stakeholders. This article delves into the concept, components, and implementation strategies of supply chain control towers, highlighting their benefits and addressing potential challenges.
In the complex and dynamic world of supply chain management, the demand for customer service excellence is ever-increasing. To meet these demands, the introduction of new technological solutions is essential. A supply chain control tower is not merely a visibility tool; it is a strategic system that focuses on high-priority visibility issues rather than attempting to cover the entire supply chain end-to-end.
Different types of control towers can be identified based on the segment of the supply chain they address, such as internal, vertical, horizontal, or cross-chain control towers. For the purpose of this discussion, we will focus on the vertical control tower.
The three key benefits of a supply chain control tower are:
To construct an effective control tower, the following five components must be considered:
Identifying and prioritizing the features required for a control tower is crucial. These features should address the challenges of the supply chain and include:
Understanding the supply chain's infrastructure, capabilities, and strategy is the first step after defining the control tower's outcomes and expectations. This involves reviewing all internal and external supply chain members and their operations to identify areas where the control tower can add value.
Identifying the supply chain business processes influenced by the control tower initiative is essential. The control tower's construction must align with business process orchestration, and any necessary updates to ERP systems or other processes should involve business process owners.
Reviewing all systems and data assets is a complex but necessary step. The core data often comes from an ERP system, and all systems involved in business process execution must be integrated with the control tower.
Choosing the right integration platform is critical. The platform should support data acquisition, device management, data storage, multi-enterprise networking, and data security.
A structured approach is necessary for developing an effective control tower. This includes a high-level plan that will be discussed in more detail in a subsequent article.
Several risks are associated with building a control tower, including:
Supply chain control towers can significantly improve operational performance, enhance customer service, reduce inventory, and provide better control and visibility of outsourced partners. They also enable the prediction of uncertainties through analytics and data assets.
One example of an advanced solution is the fruiSCE™ Control Tower, which offers real-time visibility, collaboration, and decision support powered by AI and IoT. It can integrate with multiple systems and proactively support supply chain leaders.
Supply chain control towers are transformative tools that can make supply chains more agile and competitive. By providing real-time visibility and enabling proactive decision-making, they help businesses deliver value and maintain a competitive edge in today's fast-paced market.
What is the Complete Overview of Supply Chain Management?
Supply chain management (SCM) is the broad range of activities required to plan, control, and execute from materials to production for delivery in potentially the most economical way. SCM incorporates integrated planning and implementation of the processes needed to optimize the flow of materials, information and capital into functions that include demand planning, sourcing, production, inventory management and logistics - or storage and transportation. Companies use both business strategy and specialized software in these efforts to create a competitive advantage.
Top Transportation Management Challenges In Industry Today
Transportation management is a subset of supply chain management with a primary focus on the logistics movement of goods across the supply chain through multi-modal transport types. Transportation system became the backbone of any economy and which will make or break the echo system and disrupt public life and economies at the same time.
What are the benefits of a manufacturing execution system?
Manufacturing Execution System(MES) helps organizations to plan, execute, manage, and monitor the production process. MES supervises machines, operators, resources, and inventory with complete traceability across the manufacturing process. Work center level reporting for material balancing, operation time, operational performance and machine data is reported seamlessly against each production order.
