Month: July 2020

The Coronavirus pandemic has exposed the fragility of the modern supply chain, as companies struggle to acquire the products and raw materials needed to keep revenue flowing. With many businesses relying heavily on a limited number of trading partners, many located in hard-hit areas like China, the scale of the supply chain disruption has been a wake-up call. Mark Segner, VP Global Sales, Descartes, explains.

Pummelling the Bottom Line

COVID-19 shockwaves are being felt around the globe, with one in six companies adjusting revenue targets downward. Figures from the Office of National Statistics revealed that 72% of businesses in the UK reported that they are exporting less than normal, and 59% of reported that they are importing less than normal due to the impact of Coronavirus.

According to a survey by the Institute for Supply Management (ISM), nearly 75% of companies reported supply chain disruptions due to the COVID-19 outbreak, with lead times doubling and delays compounded by a shortage of air and ocean freight options. A recent survey of Descartes customers also found that 31% are looking for alternative suppliers, and their usage of tools to find alternative supply sources has increased by 21%. Given the sheer scale of the disruption, many different types of businesses are unlikely to have a plan in place to address supply disruption from China and other countries.

Re-thinking Sourcing 

With the global supply chain often more complex than many comprehend, very few organisations can trace their supply chain beyond their Tier 1 suppliers, and many are uncertain of the location of their second and third-tier suppliers. To fully understand supply-side risk, Deloitte notes that advanced digital solutions are “generally required to trace supply networks reliably across the multiple tiers of suppliers.” Indeed, manufacturers, retailers, and distributors are in uncharted waters as they race to identify new supply sources.

Global Trade Insights Guide the Way

With the daunting task of navigating the rapidly changing global trade landscape, where should your organisation begin? Actionable global trade data is your lifeline for supply chain resilience. In the face of COVID-19 disruptions, global trade intelligence solutions can help businesses swiftly find alternative suppliers in a concise three-step process:

1. Identify potential sources; Know the market to make better sourcing decisions

A sophisticated global trade intelligence solution can assess market dynamics, revealing the impact of both the Coronavirus and recent tariff changes on specific commodity imports and exports by mapping the global flow of shipments and identifying recent volume shifts. Previous shipment volumes reveal which suppliers have capacity for your sourcing demands, while bill of lading (BOL) data helps you easily identify names, addresses, and contact details for each supplier.

1. Analyse costs; How much will it cost to do business?

Given the slowdown many companies are facing during the pandemic, curtailing costs is top of mind. Global trade data technology can analyse potential suppliers to calculate the total landed cost of doing business with them, including duty spend, variable and fixed taxes, shipping costs, and insurance costs. With international trade insight, businesses can also identify favourable Free Trade Agreements (FTA) or other preferential mechanisms to help maximise margins.

1. 3.  Vet potential trading partners; Limit liability and brand damage

The vetting process is vital for avoiding exposure to sanctioned parties but, given the fluidity and sheer size of restricted party lists and the rabbit hole of shell companies, obtaining an accurate view can be extremely challenging.

With a global trade intelligence solution, businesses can quickly screen potential suppliers to determine if the country or vendor are subject to any restrictions or sanctions from the government. Compliance vetting is crucial for avoiding fines and penalties but also ensures your company brand remains untarnished.

Beyond COVID-19

Access to actionable trade insight is critical to developing a proactive supply chain response to the coronavirus and emerging from this pandemic as intact and profitable as possible. Sophisticated global trade intelligence solutions use shipment data from across the world to model trade flows globally, helping companies rapidly identify, analyse, and vet new sourcing locations. With the right approach, businesses can mitigate the impact of COVID-19 on supply chains and also strengthen and add resiliency to their logistics operations going forward.

 

Mosaico has become a comprehensive e-procurement system, Bonfiglioli’s new online platform is now live with a greater effectiveness and a better usability due to a wider range of features. Mosaico now includes additional functions that make it an even more valuable tool for Bonfiglioli customers to find the right product for their needs.

The new version of Mosaico is fully integrated with Bonfiglioli ERP and offers users greater flexibility and reliability thanks to a multi-device interface. Essentially, there are four new features: The integration of a product selector, an extensive search function, configuration support and a ticketing system with status. With the help of these new features, the user experience is significantly improved and it saves a lot of time due to faster configuration. In addition, the new version incorporates common terminology, making it easy for users who are not technically oriented or have no previous experience with Bonfiglioli products to find their way around. Users have immediate access to all required up to date technical information like datasheet and drawings (2D, 3D and quoted version), and this around the clock, 365 days a year.

Gartner, Inc. has identified what it considers to be the top 8 supply chain technology trends in 2020. Analysts have selected strategic supply chain technology trends that have a high potential for positive impact on people, performance and industries. Some are now reaching critical tipping points in capability and maturity.

“The vast majority of organizations have a cautious approach to adopting supply chain applications and technologies,” said Christian Titze, vice president analyst with the Gartner Supply Chain Practice. “Only 21% are willing to consider, and often adopt, early-stage technologies. However, even cautious supply chain leaders must keep an open mind and embrace long-term perpetual change.”

The top supply chain technology trends in 2020 are:

Hyperautomation: a framework to mix and match a vast array of technologies in the best possible way – such as historic legacy platforms with recently deployed tools and planned investments. The term means different things for different organizations, so supply chain leaders must first find their individual definition. If deployed correctly, hyperautomation can encourage broader collaboration across domains and act as an integrator for disparate and siloed functions.

Digital Supply Chain Twin (DSCT): A DSCT is a digital representation of the physical supply chain. It is derived from all relevant data across the supply chain and its operating environment. That makes the DSCT the basis for all local and end-to-end decision making. “DSCTs are part of the digital theme that describes an ever-increasing merger of the digital and physical world,” Titze added. “Linking both worlds enhances situational awareness and supports decision-making.”

Continuous Intelligence: CI is one of the biggest opportunities for supply chain leaders to accelerate their organizations’ digital transformation. It leverages a computer’s ability to process data at a much faster pace than people can. Supply chain leaders – or other systems – can look at the processed data in near real-time, understand what is happening and take action immediately. “There are already several use cases for CI in decision support and decision automation. For example, retailers utilize CI to automatically react to customer behaviors when they shop online. This enables better customer service, more customer satisfaction and tailored offers that lead to higher sales revenue,” Titze explained.

Supply Chain Governance and Security: This is an increasingly important macro trend, as global risk events are on the rise and security breaches impact companies on both the digital and physical level. “Gartner anticipates a wave of new solutions to emerge for supply chain security and governance, especially in the fields of privacy as well as cyber and data security,” Titze said. “Think advanced track-and-trace solutions, smart packaging and next-gen RFID and NFC capabilities.”

Edge Computing and Analytics: The rise of edge computing – where data is processed and analyzed close to its collection point – coincides with the proliferation of Internet of Things (IoT) devices. It’s the technology you need when there is a demand for low-latency processing and real-time, automated decision making. Edge computing is right now making its way into the manufacturing industry. For example, some organizations have adopted driverless forklifts for their warehouses. Heavy equipment sellers can use edge computing to analyze when a part needs maintenance or replacement.

Artificial Intelligence: AI in supply chain consists of a toolbox of technology options that help companies understand complex content, engage in natural dialogue with people, enhance human performance and take over routine tasks. “AI technology is present in a lot of already existing solutions, but its capabilities evolve on a constant basis,” Mr. Titze added. “Currently, the technology primarily helps supply chain leaders solve long-standing challenges around data silos and governance. Its capabilities allow for more visibility and integration across networks of stakeholders that were previously remote or disparate.”

5G Networks: Compared to its predecessors, 5G is a massive step forward with regards to data speed and processing capabilities. The ubiquitous nature of 5G boosts its potential for supply chains. For example, running a 5G network in a factory can minimize latency and enhance real-time visibility and IoT capabilities.

Immersive Experience: Immersive experience technology, such as virtual, augmented and mixed reality, has the potential to radically influence the trajectory of supply chain management. Those new interaction models amplify human capabilities. “Companies already see the benefits of immersive experiences in use cases like onboarding new factory workers through immersive on-the-job training in a safe, realistic virtual environment,” Titze concluded.