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FOOD & BEVERAGE
companies to create a dashboard focused on suppliers and customers, along with clear traffic light ratings. This makes it easy to identify areas of greatest risk, share this information, and address potential weak points in the supply chain. 2. Keep your finger on the supply chain
pulse with warehouse management and a smart factory setup Efficient warehouse management can help
Take the digital leap to avoid the ‘butterfly effect’ on future supply chains - in today’s volatile environment, businesses must act fast to address supply chain issues before they lead to widespread disruption
RESOLVE SUPPLY CHAIN ISSUES
Andrew Newton, Dynamics 365 Business Central Food Consultant at Columbus UK, explains how long-term digital transformation using AI and predictive maintenance can help create resilient, flexible and efficient supply chains
Brexit and COVID-19 has been no different. Even now, as world economies reopen, demand for energy, labour and transport has skyrocketed. This of course places pressure on just-in-time, cross-border supply chains to keep warehouses open and shelves fully stocked. Disruptions lasting a month or longer are happening every 3.7 years on average. When the Ever Given vessel got stuck in the
S
Suez Canal back in March 2021, it showed the true impact a single event can have on the entire global supply chain. But today’s companies must now also contend with lorry driver shortages and the economic results of price inflation alongside changing customer expectations and short-term shopping fads – demonstrating just how vulnerable and less reliable current supply chains are. Inefficient supply chains can be a crippling
economic burden, with hidden costs that are difficult to quantify. In many cases, companies just don’t have the end-to-end visibility of their supply chains to make them aware they even have a problem. Rising transportation and warehousing costs, increased capital tied up in inventory and unhappy customers are quite often the first warning signs, but many companies are still
34 MAY 2022 | PROCESS & CONTROL
upply chain issues are typically only discovered during times of crisis – and this latest disruptive period following
not set up to take corrective action. It’s now time for companies to stop relying
on disparate and siloed operations – and digitalisation holds the answer. In particular, technologies from AI to predictive analytics tools can help companies future-proof supply chains from widespread disruption.
1.Master planning with traffic light ratings
will strengthen supplier networks In the current environment, concern around
product sourcing is at an all-time high with many businesses considering a shift to local suppliers. Kellogg’s for instance managed to quickly source a new supplier closer to home to overcome disruption in the early months of the pandemic – but with technological assistance, supply chain flexibility can be more than a one-off reactive shift. Supply Chain Management software with
inter-company functionality can set up traditional relationships between manufacturing, distribution and retail companies. It can also configure master planning so that sales demand created within one company automatically passes through the supply chain to the final source of supply. This enables companies to incorporate new requirements in order to build supply chains back for the varying demand. An ERP system with an integrated business intelligence tool, such as Power BI, allows
businesses prevent product shortages during times of increased demand and, at the other end of the spectrum, having too much ‘dead stock’ – and this is where data intelligence can play a key role. IoT and AI devices can receive real-time data on the capacity and consumption of goods, providing businesses with the end-to-end visibility to stay on top of stock availability and capacity constraints caused by new customer demands. Technology can even act as a supply chain
safeguard against less expected changes. For instance, businesses can create system alerts with Supply Chain Management software and heat maps of warehouse processes to flag exceptional supply chain situations. This could be for when product inventory levels are below target minimums, or actual supplier lead times that exceed those planned, to help businesses improve on-time delivery and customer experiences. 3.Optimise production performance by
keeping track of outside pressures On the production line, technology can
provide a greater level of connectivity, especially when it comes to automated operations. For instance, businesses can replace manual processes with ERP systems to receive automatic updates on equipment performance and more easily keep up with regular maintenance. This boost in workforce productivity and equipment efficiency can increase uptime, throughput and quality. But keeping track of outside pressures is key.
Mixed reality technology and predictive analytics tools can make it easier to manage resource use and product standards. AI and Machine Learning (ML) tools for example can keep track of market trends, making it easier for businesses to anticipate potential shifts in customer demand and raw material availability. ERP systems with flexible planning and forecast models on the other hand, can be beneficial for industries such as food and beverage that often suffer from weather changes. Forecast models can take into account current and historical weather patterns, allowing businesses to accurately base production cycles. AI and ML tools can also monitor the supply
chain’s environmental and ethical risks. This is important with the rise of ethical consumerism, which globally has seen 93 percent of consumers expecting brands to take action on local, social and environmental issues.
Columbus UK
www.columbusglobal.com
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