FUNCTIONALITY END-TO-END SUPPLY CHAIN VISIBILITY UPSTREAM / SUPPLIERS Supplier health


STRATEGIC (YEARLY)


Supplier & product segmentation Product traceability


INTERNAL


Supply chain network mapping Supply chain segmentation


Product Lifecycle Management


DOWNSTREAM / CHANNELS Distributor health


Market & customer segmentation Customer omni-channel buying behaviour


Total land costs SKU & shipment TACTICAL (MONTHLY) Supplier production plan Supply risk alert & contingency


Cost-to-serve SKU & customer


Capable/Available to Promise (CTP/ATP) Multi-echelon Planning


Demand shaping Forecasting & demand sensing Demand & promotion planning


Order acknowledgement


OPERATIONAL (WEEKLY/ DAYLY)


Material/Component Inventory Advanced Shipping Note (ASN) Shipment in transit INBOUND


Stock on hand Order planning


Adherence to plan Order status PROCESSING


On-shelf availability POS data


Delivery Schedule Digital Proof of Delivery (POD) OUTBOUND


multinationals use tools for supply chain network design.


Internally focused visibility revolves around supply chain segmentation, the cost-to-serve per product, and the capaci- ties and bottlenecks affecting the ability to supply.


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The last of the three focus areas relates to the downstream visibility towards the sales and distribution channels and the end customers. Rapidly changing custo- mer needs mean that the demand variabi- lity and the ability to forecast it reliably are of strategic importance. Gartner’s recent study confirms this. At tactical level, it has become increasingly important to have insight into the profitability of each cus- tomer, and the rise of e-commerce means that the delivery status and track & trace have become a crucial part of visibility at operational level.


Software vendors


Now that computers have such enormous power and visualization possibilities, and


that systems are ever-easier to integrate – whether in the cloud or not – a growing number of software vendors are venturing into supply chain visibility. Not only size- able (and largely American) software sup- pliers such as SAP, E2open, JDA, Logility, AEB, Software AG, Descartes, Amber Road, Tesisquare, Elemica, One Network Enterprises, Elementum and GT Nexus (now part of ERP supplier Infor) are thro- wing themselves into visibility solutions, but so too are emerging international companies such as Gravity Supply Chain, MPO, Shippeo and Pro Alliance.


Widely varying solutions


On closer inspection of the visibility solu- tions, it appears that the type of functiona- lity on offer and actually implemented for users varies widely between the various software suppliers. To help companies gain a clear picture of what kind of visi- bility they need, Supply Chain Media has developed this matrix containing details of the specific functionality in the three


focus areas: upstream, internal and down- stream.


The ideal scenario – mainly for big multi- nationals but also for smaller ones – is a single supply chain control tower which provides a complete overview of the whole chain. In practice, however, it turns out that various leading multinationals have multiple control towers. Unilever has a logistics control tower in Poland, for example, and up until recently also had a procurement control tower in Switzer- land. Drinks manufacturer Diageo has a control tower for demand in Budapest and one for supply in Amsterdam. Furthermore, if a multinational does succeed in working with a single con- trol tower, it often comprises multiple systems. Henkel developed its supply chain control tower in Amsterdam itself by connecting various different systems together, and only part of it is in the cloud. Just like its competitors, this company still has a long way to go to achieve full end-to-end supply chain visibility.


SUPPLY CHAIN MOVEMENT, No.31, Q4 2018


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