Structured Data for Supply Chain Resilience

Risk mitigation is imperative to reduce the risks of and damage from cyberattacks and other crises, writes Robert Strange (pictured below), Senior Engineer at Neo4j.

Supply chains have evolved into highly connected networks in recent years, driven by technological advancements that have made them ‘smarter’. While these innovations have positively transformed business operations, they have also opened avenues for new vulnerabilities, leaving supply chains susceptible to disruptions in both the physical and digital realms.

The growing risk of cybersecurity is a prime example of these vulnerabilities. The ransomware attack on Blue Yonder, a supply chain management software specialist, highlighted the severe disruptions such incidents can cause. This attack compromised the company’s managed services environment, leading to delays at several grocery and retail stores across the UK – delays not just in delivering goods but also in paying staff and managing schedules.

Blue Yonder’s attack underscores the need for scenario planning and robust mitigation plans to safeguard against these risks. These incidents can bring production to a standstill and significantly disrupt business revenues if plans to contain potential impacts are not mapped out in advance. Data plays a central role in keeping supply chain operations running efficiently and effectively, but the reality is these supply chains are currently not being safeguarded or optimised to withstand real-world disruption. As a result, many businesses are turning their attention to innovative technologies and strategies to strengthen resilience throughout their supply chains.

Overcoming the challenges of supply chain visibility

Supply chains are inherently complex in nature; a vast network of producers, warehouses, transportation systems, distribution ports, and stores from around the world. A single disruption in any part of this network can send the entire system into disarray, making visibility crucial in preventing a domino effect. Nonetheless, extracting valuable insights from raw supply chain data presents its own set of challenges. Traditional data models, which rely on rigid structures of tables, rows, and columns, struggle to effectively capture the intricate relationships between different data sets. Inflexible in their structure, analysts using these models have limited ability to extract valuable insights that could inform a response to disruption.

Mapping connections for smarter supply chains

This is where graph databases come into play. Traditional data models struggle with complex relationships, while graph databases offer a more dynamic approach. In this model, ‘nodes’ represent entities, like people, products, or locations, while ‘edges’ represent the relationship between two nodes – i.e., how they are connected to one another. The unique structure of graph databases is especially valuable for supply chain professionals wanting to benefit from digitally visualising their supply chain as the interconnected network that it is.

Rob Strange – Neo4j

To optimise transportation, a supply chain organisation could, for instance, create nodes to represent each wholesaler and retailer. These could be connected by edges to show the distances between them. Then, by running the appropriate query or request in the data model, the analyst should be provided with what should be the ‘best’ – fastest and cheapest – supplier from which goods can be transported ready for purchasing.

Understanding the relationship between different entities in advance can also be invaluable when dealing with unexpected disruption. Take the crisis in the Red Sea, for instance, where shipping companies are facing rising costs and delays due to rebel attacks. Graph technology could allow those managing supply chains to identify alternative routes or solutions pre-emptively, ensuring goods reach suppliers more efficiently, enhancing resilience, and minimising disruption.

The power of graph databases lies in their ability to map complex relationships between entities, making them a crucial tool for uncovering insights. Supply chains, which operate as networked structures, are naturally suited to this model, while the rigid format of traditional models makes it much harder to reveal these relationships.

Predicting and preventing disruption with digital twins

Supply chain resilience isn’t just a case of managing physical disruptions, it’s also about preparing better responses to those in the digital realm. Cyberattacks can significantly disrupt digital operations. As such, businesses are exploring digital twin technology as a tool for proactively combatting potential issues before they arise and conducting post-incident analysis.

Organisations are creating virtual replicas of their supply chains called ‘knowledge graphs’ to test different scenarios and predict multiple outcomes of cybersecurity risks. This means a connected, virtual model provides a comprehensive view of the supply chain and allows companies to understand how these systems interact at both a granular and holistic level. This picture encompasses the users and the groups they belong to, and the permissions granted to each member. As recurring or interconnected events are captured over time, the digital twin becomes more accurate. This enables both cybersecurity and supply chain analysts to act swiftly and more effectively while informing how they respond in the future.

Making these connections visible to cybersecurity analysts helps identify the most critical vulnerabilities and the potential attack paths that threaten resources. Analysts can then assess the likelihood of successful attacks by attaching the probabilities to each of those pathways, enabling them to reinforce security measures accordingly.

This insight is valuable because it clearly signposts when organisations need to map out other viable routes, reassess transit times, and evaluate cost implications. By combining cybersecurity modelling with supply chain optimisation, organisations create a powerful strategy that allows them to stay ahead of disruptions and re-prioritise resources in quicker succession.

Getting a grip on future events

As supply chains become more interconnected and worldly disruptions more unpredictable, organisations should aim to make the most of their connected data. By leveraging graph databases, companies can uncover insights into the relationships within their data, allowing them to proactively identify vulnerabilities and navigate uncertainty with confidence.

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AI and IoT are Redefining the future of Supply Chains

AI and IoT are redefining the future of supply chains and revolutionising logistics, writes Adrian Negoita (pictured below), CTO and Co-Founder of Dexory.

In the warehousing industry, every detail matters and precision is paramount. Any business involved in the selling of physical goods needs efficient supply chain management. However, the dynamic nature of the business environment, currently characterised by geopolitical tensions, fierce competition, and increasing costs, has meant supply chain disruptions have become a major obstacle.

The integration of Artificial Intelligence (AI) and The Internet of Things (IoT) brings about a paradigm shift, providing real-time insights and revolutionising the way businesses manage their logistics. Thanks to these technologies, businesses can better react to challenges, improving their resilience and streamlining operations like never before.

What distinguishes AI from the Internet of Things?

AI and IoT work harmoniously but have unique functions and capabilities. AI is a machine’s capability to emulate the intelligence we typically associate with human minds. In the context of logistics, algorithms analyse vast data sets, garner insights, predict outcomes and make informed decisions based on the collected data. This process happens continuously, meaning performance can be enhanced over time. For instance, AI-powered solutions enhance operational efficiency through improved inventory management, space optimisation and forward planning. Businesses that can rapidly learn from previous operation patterns up to the present can make adjustments simultaneously, improving their resilience.

The Internet of Things describes when objects are fitted with sensors, software and other technologies to connect and exchange data over the Internet. In warehousing, IoT sensors and radio-frequency identification (RFID) tags can be used to provide insights into the supply chain’s inventory, assets and environmental conditions.

The advantages of AI and IoT in collaboration

Ultimately, the integration of AI and IoT results in warehouse systems that are more agile, responsive, and efficient. An essential advantage is the provision of real-time data insights. IoT devices consistently transmit data, offering insights into inventory levels, asset performance, and environmental conditions of the warehouse. Following this, AI algorithms analyse the data, providing logistics managers with actionable insights that facilitate prompt and effective decision-making.

AI is capable of processing and anticipating future fluctuations in demand using historical IoT data. This helps to identify any potential constraints and disruptions. All this means warehouses can adapt quickly to overcome obstacles.

IoT and AI also enhance traceability and transparency. Tracking devices powered by IoT illustrate the movement of products throughout the supply chain. AI compiles and then uses this data to adjust inventory levels appropriately, monitor goods, and enhance delivery precision. It also can monitor the whereabouts of shipments, thereby enabling logistics firms to provide the best possible customer service, giving accurate information and comprehensive delivery predictions to customers.

Optimising visibility

The lack of visibility in supply chains is a critical factor impeding operational efficiency, exposing organisations to potential risks and inefficiencies. An over-reliance on outdated data means warehouses respond too slowly to challenges. To attain true resilience, supply chains require the availability of dependable information.

The implementation of autonomous mobile robotics substantially increases productivity. Enhanced sensors and digital twin technology, which simulates the physical environment, in conjunction with industry-leading robotics, provide unprecedented visibility and control. Technological innovations have brought about a paradigm shift in warehouse operations by enhancing problem identification and resolution, in addition to environmental monitoring. The faster a problem or technical issue can be identified and resolved, the higher all-around efficiency is in response to complex and ever changing demands placed on the warehouse industry.

Conventional systems fail to adequately handle the volume and speed of data, resulting in decisions made from outdated or incomplete information. Nevertheless, by integrating AI-powered analytics and IoT real-time data, organisations can enhance operational resilience, predict results, and make well-informed decisions. As these technologies continue to advance, warehousing will evolve alongside them.

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The future of warehousing: automation, robotics and energy efficiency

 

Digital twins help postal and logistics companies plan for the future

Outside of fantasy novels, nobody has a crystal ball to see into the future. However, postal services and logistics companies are building digital twins to achieve just that. Powered by data-driven virtual models that can simulate real-world operations, digital twins are allowing the sector to predict the future and plan for it.

Alexandra Ballestrem, Key Account Director, and Roosmarijn Schopman, Proposition Manager at Prime Vision, explore how digital twins are providing unparallelled foresight in logistics operations.

Reducing uncertainty

Postal and logistics processes are beholden to a multitude of factors, many of which are outside the control of a business. With customer expectations regarding speed of delivery at an all-time high, maintaining service levels during operational shocks is a constant challenge, as nobody knows what’s coming next. Consequently, companies are looking for tools to mitigate uncertainty and assist in contingency planning.

Mature logistics operations are highly automated. Whenever a parcel or letter travels through a sorting centre, it is photographed, scanned and tracked by a wide array of equipment. This generates masses of data, which can be stored and analysed to offer insights into an operation. Increasingly, postal and logistics companies are using these data streams to build digital twins.

A digital twin is a virtual representation of a physical object, or in this case, a process. By feeding real-world data into bespoke mathematic models that accurately reflect operations, owners of a digital twin can simulate how changing parameters can affect their business. With the masses of data required to drive the system already available from existing automation equipment, a digital twin allows almost limitless experimentation with minimal risk. While no crystal ball, it enables businesses to conduct effective contingency planning, and possibly more.

Digital Postage Twins

Take, for example, an increase in parcel or letter volumes. The key question is, are existing processes flexible enough to effectively manage this higher volume between current facilities? If not, is investment in a new sorting centre, equipment or staff required? Using a digital twin, businesses can feed increased parcel and letter volumes into the models, testing operations to get an answer. A new sorting centre will require at least five years to offer return on investment (ROI), so having a data driven system to properly inform the decision is invaluable.

Unforeseen breakdowns are another event that can be modelled and mitigated by a digital twin. With postal services operating 20 to 80 hubs in a country depending on size, what would happen if one were to go down? This can be replicated in the digital twin and the effects observed. More than that, it allows businesses to proactively plan and strategize to keep downtime and delivery delays to a minimum. Using the simulation, operators can find the best way to spread volumes and reduce the impact, rather than carrying out a time-consuming postmortem after the event.

The virtual world exerting physical control

While these scenarios focus on sortation, digital twins have plenty more possibilities. Simulations can be carried out to test how to use available floorspace within a warehouse and discover new efficiencies. Companies using robots can replicate their entire fleet digitally and find ways to optimise movement within a facility. If the data is available, delivery vehicles can be included to predict how goods could travel between different sorting centres for processing.

With coverage over an entire operation, a digital twin can actively influence the physical world and open the door to dynamic sorting and self-organising logistics. By creating a virtual counterpart of letters, parcels and pallets, the digital twin can make automatic decisions to adjust pick-ups, inbound goods, sorting and outbound deliveries to improve the speed, quality and flexibility of logistics processes. As a result, users can improve service while lowering operating and capital expenditure.

A proven partner for digital twins

Accessing the benefits of a digital twin is no easy task. First of all, a business must record as many physical events as possible via equipment in its facility. This helps to build a complete data set and deliver accurate predictions. With data collected and stored, a knowledgeable expert must turn customer process parameters and factors into working mathematical models and software. An analytical dashboard is also required to present results.

 

Digital twins

Prime Vision is an expert in building digital twins from the ground up. Its computer vision systems, analytical software, data storage solutions and robotics are embedded in the sortation process from start to finish, providing customers in its install-base with the data required to build an accurate simulation. Its digital twins are even compatible with products from other vendors, ensuring widespread coverage. The company specialises in seamlessly integrating its automation products with existing customer infrastructure.

In all cases, Prime Vision can flexibly unite sporadic sources of data to build a functional and impactful digital twin. Its research and development engineers are adept at translating physical operations into working software models and providing an accurate digital representation of unique customer processes. This can be hosted within a customer environment or by Prime Vision, either at a premises or on the cloud.

For postal or logistics companies looking to take a proactive approach to contingency planning, a digital twin is essential to make the right predictions and decisions. By partnering with an expert like Prime Vision, these businesses have no need of a fortune teller to secure efficiency and future resilience.

More from Prime Vision:  https://primevision.com/the-letterverse-digital-twins-help-postal-and-logistics-companies-plan-for-the-future/

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