What does it mean to have an orchestrated supply chain?
Supply chain orchestration is essential in end-to-end manufacturing for supply chain leaders to have clear visibility into how to improve operational performance. Enabling teams to work together across functions and technology is the only way to deploy a sustainable strategy in today's ever-changing global supply chain.
Murphy’s law states that “anything that can go wrong will go wrong.” This is an important mindset for manufacturers to consider in the state of the current global supply chain. With ongoing disruptions, supply chain leaders are beginning to invest in the value of advanced analytics solutions that allow for full-scope visibility and comprehensive insights that protect against unforeseen material shortages and delays. Supply chain orchestration creates a framework to aid these technological solutions, and create a plan for the constant disruptions modern manufacturers are facing.
What is supply chain orchestration?
Supply chain orchestration is an end-to-end manufacturing process approach that looks holistically at the global supply chain to give manufacturers total visibility into their business processes. Utilizing real-time monitoring, tracking, and other critical data to target potential disruptions before they become larger problems. It also includes a large focus on connectivity and strengthening partnerships with suppliers and other partners to allow the supply chain to operate with more agility. All stakeholders have a clear understanding of what the process is, and are in sync when it comes to making business decisions because they are backed by data-driven analytics. The goal to establish an agile supply chain is possible with the ability to easily adapt to changes and disruptions without compromising profits and business growth.
What is components are necessary to complete supply chain orchestration?
There are three main components to fully optimize operational performance.
Step 1) To start the supply chain orchestration process is establishing an outline for visibility in your organization. Businesses need a clear framework for understanding the visibility needs of an organization and the structures in place to fill these needs. With a clear view of the current supply chain, business leaders can see where potential disruptions lie, and how they could affect other areas of the organization.
Step 2) Next is to build a foundation for resilience. Looking at the current state of business affairs such as the diversification of suppliers and where the manufacturing materials come from will help establish the current baseline of resilience. Supply chain leaders must then use this information in combination with the visibility gained from the previous step to come up with ways to manage risk and increase their resilience.
Step 3) The final necessity for the supply chain orchestration framework is a full review of the organization’s operating model. Similar to the previous steps, business leaders must establish what the current plans in place are as well as what their current position in the supply chain is. Once they have a clear understanding of where the business currently stands, they can implement recommendations from the previous steps to increase visibility and optimize their operations.
Many organizations have the structure of supply chain orchestration but lack the tools necessary to implement solutions.
Advanced analytics solutions help modern manufacturers evolve towards supply chain maturity with actual real-time insights into the global supply chain. They can provide recommendations for greater visibility, resiliency, and overall better ways to operate. Leveraging real-time data to identify opportunities and give actionable recommendations that are based on data teams may have otherwise never had access to. Advancing technology is no longer an option for businesses, but a necessity for today’s manufacturers. The key for supply chain leaders is to find the best solution for their organization, and that will empower their teams to operate at the most efficient level.
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