Given the break-neck pace at which the markets function, supply chain executives must think on their feet to stay ahead of the competition. Each day brings possibilities and factors, turning the decision-making job into an unenviable task. Making the correct decision requires an eclectic mix of experience and knowledge, the foundation of sound judgment. Errors in judgment come with both far-reaching and immediate consequences. That's why relying on gut instinct or experience alone or reviewing very few KPIs can sometimes spell severe impact. Now, consider technology helping you simulate the market by creating a digital twin using different distribution models. You can use this simulation to compare production to inventory statistics and make educated trade-off decisions. Supply chain optimization is a must to meet the new needs and supply chain issues. Supply chain managers must stay ahead of the curve to anticipate developments. Supply chain optimization aims to ensure that a production and distribution supply chain runs as efficiently as possible. This comprises effective inventory placement all along the supply chain and decreases operating costs, such as production, transportation, and administrative expenses. Supply Chain optimization frequently involves using mathematical modeling approaches in conjunction with computer software.
Increased levels of customization and particularization of every capability have made their way into all forms of business and production. The supply chain has not been able to stay out of this domain of reorganization, and as a result, supply chain segmentation is a hot topic.
A digital twin is a highly detailed digital replica of any system that uses comprehensive data to emulate the working of the system at all times. Therefore, a supply chain digital twin is a simulation model of a supply chain. You feed the model real-time data from all sources and systems of the organizations that can exactly work out the effects of macro and micro-changes on the system using advanced analytics and learning models.
Even though it's hard to pin down an exact percentage, research has shown that on average, about half of strategic initiatives fail to be executed successfully. For those conceptualizing strategies, this is, of course, a sobering statistic: this means half the strategic work you're doing is not leading to the desired results. In this article, we'll look at some of the reasons why strategic measures aren't executed, and help you ask the right questions to increase the impact of your strategies.
Supply chain compliance is currently the subject of intense public debate under the heading of "Lieferkettengesetz". Three German federal ministries are involved, some of which have different views. Germany is virtually at the centre of events here: our economic system of large corporations, small and medium-sized enterprises, strong trade unions and moderate political parties committed to the Soziale Marktwirtschaft enables a serious and "mature" discussion on the subject of minimum ethical standards in the supply chain. As a strong exporting nation, we have a great responsibility for this topic.