If you’ve paid much attention lately, the topic of “smart supply chains” is currently in vogue.
But what is a smart supply chain, exactly? And are you trying to build one at your company?
The idea of smart or intelligent supply chains has been around for some time – more on that in just a bit. However, part (but by no means all) of the recent reanimated discussion about smart supply chains has come from the efforts of IBM, which has made “smarter” supply chains one of its key marketing messages.
In a report IBM released last year summarizing surveys and interviews with hundreds of senior supply chain executives (promoted in many venues since then, including SCDigest), IBM said that “To deal effectively with risk and meet your business objectives, we believe supply chains must become a lot smarter,” and called on Chief Supply Chain Officers to start building to that new vision right now.
In conversations with supply chain executives, technology providers, and consultants, I would say the idea of building “smarter” supply chains is in fact gaining some traction.
How did the IBM report define a smart supply chain? IBM said there are three important components. The supply chain of the future needs to be: - Instrumented: Supply chains will be supported by pervasive data collection networks that provide real-time visibility; pallets will “report if the wind up in the wrong place.”
- Interconnected: We will have system-to-system integration up and down the supply chain, not only to trading partners but to machines and inventory (shop floor to top floor).
- Intelligent: We will achieve better supply chain decision-making through advanced analytics and next generation optimization software.
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