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Hemanth Holla
Senior Manager, SupplyChain Practice
Navigating Supply
Chain Disruptions
POINT OF VIEW
with an integrated control tower
The global market in 2021 is
faster, more digital and more
competitive than ever.
Customers carry the baton, and demand signals
keep flowing into the enterprise from more and
more different channels.
The modern supply chain dynamics
require innovative capabilities and
strategies to deal with uncertainties,
improve resilience and implement holistic
solutions to balance costs, services,
deliveries and customer expectations.
Supply chain leaders need to manage a
highly complex supply chain for the global
business environment and deal with
disruptions to keep the bottom line and
top line intact. However, for decades, poor
supply chain visibility has suffocated the
industry.
© 2022 Tredence. All Rights Reserved.
2
While function-specific analysis is
time-consuming, cross-functional insights
are even more challenging and require
sifting through large volumes of data.
Thus, business unit heads lose sight of the
strategic ambitions of the overall supply
chain. The lack of supply chain visibility is
overwhelming and keeps on staggering.
II. Lack of know-hows, tools,
technologies to generate insights
With the advent of digital data, volume,
accessibility and insights generation
through analytics are critical to creating a
sustainable supply chain. However,
because analytics is not widely adopted,
the data is poorly used.
The data engineering and analytics
capabilities in most supply chains are
insufficient. As a result, supply chain
leaders often cannot effectively use
relevant data at the required speed. They
also lack diagnostic and advanced
analytics tools/technologies and often fail
to understand the nature of use cases or
problems in the supply chain.
I. Data and application silos
Vertical organizations often fly blind.
Yes, that is true. Most companies are vertically
integrated and use systems such as ERP, TMS,
WMS, MRP to manage their functional
departments. The functions primarily rely on
plans developed within such systems to drive
execution, monitoring & control. As a result,
critical information such as customer
demand, logistics, function-specific supply
challenges & backlogs is siloed and invisible
to other departments.
Here are the four challenges
impeding the modern supply chain.
According to a survey by Supply Chain
Drive, only 6% of companies believe that
they have achieved complete supply
chain visibility.
III. Lack of predictive & prescriptive
capabilities
As per the Chartered Institute of
Procurement & Supply Risk Index’s report, the
average annual economic loss caused by
major natural disasters around the world is
approximately US$211 billion.
Supply chain leaders also need to leverage
new capabilities to predict market moods,
deviation and unanticipated geopolitical
landscape.
However, most existing advanced analytics
applications cater to solving point problems.
There is an acute shortage of capabilities to
use prescriptive or simulative simulations or
what-if analysis to investigate broader
issues in the supply chain and make
recommendations. In addition, there are only
The above four challenges require building a
digital control tower with data engineering
functions and pipelines on top of a solid data
layer. Establishing a simplified data
architecture with an automated framework
can integrate master data andtransactional
data sources in a streamlined manner,
ensuring the availability of necessary data
across multiple silos to obtain accurate real-
time visualization of the overall supply chain
health. AI/ML-driven analytics and rapid
© 2022 Tredence. All Rights Reserved.
3
Gartner reports, 79% of supply chain
leaders believe that the
internet/platform- based approach is the
most critical new business model.
a few good AI/ML-driven analytics solutions
out there that prevent executives from using
machine learning and limit the automation
of the supply chain.
IV. Lack of off-the-shelf solutions
Every use case or nature of the problem
varies from customer to customer. So
off-the-shelf products cannot meet
customization and personalization
requirements. Regarding the KPIs that
businesses want to measure, use cases vary
from company to company, making it
impossible for off-the-shelf applications to
handle. Such rigid solutions put the burden
on supply chain leaders to get data in the
desired format. Indulgent customizations,
choice complexities often lead to value
destruction.
Digital control tower enabling end-to-end supply chain
visibility capabilities
scenario planning can provide speed,
consistency and flexibility to achieve
controllable and manageable supply chain
functions, thereby helping executives gain a
competitive advantage.
© 2022 Tredence. All Rights Reserved.
4
Two critical elements of an ideal
Supply Chain Control Tower
An ideal Supply Chain Control Tower
(SCCT) is a cross-departmental,
system- integrated “information hub”
that provides end-to-end visibility.
There are two key elements to build/
implement an ideal SCCT.
I. Real-time visualization catering to
different personas
Executive Insights:
An ideal supply chain control tower will
provide a bird’s eye view of the overall
supply chain health. It will enable the
leaders to collect and distribute
information, identify risks and respond
strategically.
Execution Insights:
SCCT’s state-of-the-art setup caters to
the nuanced aspects of the supply chain
health for multiple execution persona –
analysts or managers at the DC level or
fulfillment center to view the various KPIs.
It provides them with information to
monitor, measure and manage different
aspects of the supply chain, including
transportation, inventory movement and
operational activities.
II. Use case approach for
autonomous supply chain
The ideal supply chain control tower can
guide leaders/managers to explore potential
use cases. It will allow them to find the most
critical challenges that profoundly impact
the overall performance of the supply chain
and use advanced analytics, such as
machine learning, advanced forecasting, or
advanced scenario planning. In this way,
they can combine use cases with
visualization and diagnostic capabilities and
automate the supply chain as they mature.
Conclusion: Control towers are stepping stones towards autonomous
supply chain
The supply chain control tower provides complete visibility from high-level monitoring layers to
execution details, so the executives can optimize, manage, plan and execute supply chain
processes and operations faster and more accurately. The addition of anomaly detection,
automated root cause analysis and response capabilities will further simplify the transition
towards a cognitive supply chain control tower.
Tredence is one of the leading data engineering and data analytics companies in the US,
Europe and APAC. Our Supply Chain Control Tower is built based on years of experience solving
complex supply chain problems with AI and advanced analytics. We provide real-time visibility
to your entire supply chain, driven by modular KPIs customizable for your needs.
Find out how Tredence can help improve visibility and efficiency through our supply chain
analytics services.
Reach out to us at info@tredence.com.
© 2022 Tredence. All Rights Reserved.
5
Benefits of control tower implementation
End-to-end visibility
Improved decision making
Enhanced inventory control
Reduced compliance penalties
Integrated supply chain
Reduced network failures
Optimized buffer inventory
Accurate demand planning,
better scheduling, reduced
cycle times and inventory
levels
© 2022 Tredence. All right reserved.
About the Author
Hemanth Holla
Senior Manager, Supply Chain Practice
Hemanth is a supply chain management
professional with extensive experience in
supply chain consulting and digital
transformations. He has worked in multiple
digital transformation projects to help clients
with process improvements and efficiencies
in the areas of production scheduling (Finite
Scheduling), supply chain planning, MRP,
master scheduling, procurement, quality and
related supply chain areas.He is really
passionate about solving supply chain
problems using a combination of process
improvements & technology.

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Navigating supply chain disruptions.pdf

  • 1. Hemanth Holla Senior Manager, SupplyChain Practice Navigating Supply Chain Disruptions POINT OF VIEW with an integrated control tower
  • 2. The global market in 2021 is faster, more digital and more competitive than ever. Customers carry the baton, and demand signals keep flowing into the enterprise from more and more different channels. The modern supply chain dynamics require innovative capabilities and strategies to deal with uncertainties, improve resilience and implement holistic solutions to balance costs, services, deliveries and customer expectations. Supply chain leaders need to manage a highly complex supply chain for the global business environment and deal with disruptions to keep the bottom line and top line intact. However, for decades, poor supply chain visibility has suffocated the industry. © 2022 Tredence. All Rights Reserved. 2 While function-specific analysis is time-consuming, cross-functional insights are even more challenging and require sifting through large volumes of data. Thus, business unit heads lose sight of the strategic ambitions of the overall supply chain. The lack of supply chain visibility is overwhelming and keeps on staggering. II. Lack of know-hows, tools, technologies to generate insights With the advent of digital data, volume, accessibility and insights generation through analytics are critical to creating a sustainable supply chain. However, because analytics is not widely adopted, the data is poorly used. The data engineering and analytics capabilities in most supply chains are insufficient. As a result, supply chain leaders often cannot effectively use relevant data at the required speed. They also lack diagnostic and advanced analytics tools/technologies and often fail to understand the nature of use cases or problems in the supply chain. I. Data and application silos Vertical organizations often fly blind. Yes, that is true. Most companies are vertically integrated and use systems such as ERP, TMS, WMS, MRP to manage their functional departments. The functions primarily rely on plans developed within such systems to drive execution, monitoring & control. As a result, critical information such as customer demand, logistics, function-specific supply challenges & backlogs is siloed and invisible to other departments. Here are the four challenges impeding the modern supply chain. According to a survey by Supply Chain Drive, only 6% of companies believe that they have achieved complete supply chain visibility.
  • 3. III. Lack of predictive & prescriptive capabilities As per the Chartered Institute of Procurement & Supply Risk Index’s report, the average annual economic loss caused by major natural disasters around the world is approximately US$211 billion. Supply chain leaders also need to leverage new capabilities to predict market moods, deviation and unanticipated geopolitical landscape. However, most existing advanced analytics applications cater to solving point problems. There is an acute shortage of capabilities to use prescriptive or simulative simulations or what-if analysis to investigate broader issues in the supply chain and make recommendations. In addition, there are only The above four challenges require building a digital control tower with data engineering functions and pipelines on top of a solid data layer. Establishing a simplified data architecture with an automated framework can integrate master data andtransactional data sources in a streamlined manner, ensuring the availability of necessary data across multiple silos to obtain accurate real- time visualization of the overall supply chain health. AI/ML-driven analytics and rapid © 2022 Tredence. All Rights Reserved. 3 Gartner reports, 79% of supply chain leaders believe that the internet/platform- based approach is the most critical new business model. a few good AI/ML-driven analytics solutions out there that prevent executives from using machine learning and limit the automation of the supply chain. IV. Lack of off-the-shelf solutions Every use case or nature of the problem varies from customer to customer. So off-the-shelf products cannot meet customization and personalization requirements. Regarding the KPIs that businesses want to measure, use cases vary from company to company, making it impossible for off-the-shelf applications to handle. Such rigid solutions put the burden on supply chain leaders to get data in the desired format. Indulgent customizations, choice complexities often lead to value destruction. Digital control tower enabling end-to-end supply chain visibility capabilities scenario planning can provide speed, consistency and flexibility to achieve controllable and manageable supply chain functions, thereby helping executives gain a competitive advantage.
  • 4. © 2022 Tredence. All Rights Reserved. 4 Two critical elements of an ideal Supply Chain Control Tower An ideal Supply Chain Control Tower (SCCT) is a cross-departmental, system- integrated “information hub” that provides end-to-end visibility. There are two key elements to build/ implement an ideal SCCT. I. Real-time visualization catering to different personas Executive Insights: An ideal supply chain control tower will provide a bird’s eye view of the overall supply chain health. It will enable the leaders to collect and distribute information, identify risks and respond strategically. Execution Insights: SCCT’s state-of-the-art setup caters to the nuanced aspects of the supply chain health for multiple execution persona – analysts or managers at the DC level or fulfillment center to view the various KPIs. It provides them with information to monitor, measure and manage different aspects of the supply chain, including transportation, inventory movement and operational activities. II. Use case approach for autonomous supply chain The ideal supply chain control tower can guide leaders/managers to explore potential use cases. It will allow them to find the most critical challenges that profoundly impact the overall performance of the supply chain and use advanced analytics, such as machine learning, advanced forecasting, or advanced scenario planning. In this way, they can combine use cases with visualization and diagnostic capabilities and automate the supply chain as they mature.
  • 5. Conclusion: Control towers are stepping stones towards autonomous supply chain The supply chain control tower provides complete visibility from high-level monitoring layers to execution details, so the executives can optimize, manage, plan and execute supply chain processes and operations faster and more accurately. The addition of anomaly detection, automated root cause analysis and response capabilities will further simplify the transition towards a cognitive supply chain control tower. Tredence is one of the leading data engineering and data analytics companies in the US, Europe and APAC. Our Supply Chain Control Tower is built based on years of experience solving complex supply chain problems with AI and advanced analytics. We provide real-time visibility to your entire supply chain, driven by modular KPIs customizable for your needs. Find out how Tredence can help improve visibility and efficiency through our supply chain analytics services. Reach out to us at info@tredence.com. © 2022 Tredence. All Rights Reserved. 5 Benefits of control tower implementation End-to-end visibility Improved decision making Enhanced inventory control Reduced compliance penalties Integrated supply chain Reduced network failures Optimized buffer inventory Accurate demand planning, better scheduling, reduced cycle times and inventory levels
  • 6. © 2022 Tredence. All right reserved. About the Author Hemanth Holla Senior Manager, Supply Chain Practice Hemanth is a supply chain management professional with extensive experience in supply chain consulting and digital transformations. He has worked in multiple digital transformation projects to help clients with process improvements and efficiencies in the areas of production scheduling (Finite Scheduling), supply chain planning, MRP, master scheduling, procurement, quality and related supply chain areas.He is really passionate about solving supply chain problems using a combination of process improvements & technology.