Volatility. Uncertainty. Complexity. Disruption. If you work in manufacturing today, you’re likely quite familiar with these terms, as they describe the current operating conditions for organizations around the world.
Whether you consider the political and economic turmoil driving global change or the myriad types of manufacturing supply chain disruptions – fluctuating demand, supplier constraints, sustainability mandates — one fact remains abundantly clear:
Supply chains must adapt at pace with market conditions to survive and thrive.
In years past, manufacturers focused on streamlining operations to reduce costs and improve efficiency. With slower moving changes in technology and customer demand, these efforts were largely successful.
These days however, legacy supply chain processes and systems simply can’t keep up with volatility. Leading manufacturers are replacing manual workflows and isolated systems with connected supply chain operations that support:
- Real time decision making
- Visibility into their ecosystems
- Seamless connectivity between stakeholders
This new era of supply chain manufacturing is enabled by connectivity.
What Is a Connected Supply Chain in Manufacturing
Fundamentally, a connected supply chain unifies machines, systems, suppliers, logistics providers, and customers on digital platforms that support rapid data sharing and business intelligence.
Connected supply chains are the evolution of smart manufacturing — an approach to operations that fuses the physical and digital worlds to improve performance. Hexaware summarizes connected manufacturing ecosystems like this:
“When machines are connected to share data with other machines and data are integrated with processes across the ecosystem, manufacturers will have real-time visibility into their operations, will be able to predict issues before they occur, and have the ability to optimize performance.”
Connecting everything from supply base to customer allows manufacturers to seamlessly share data and automate workflows end to end.
Important features of connected supply chains include:
- Visibility of data across the entire value chain in real time
- Closed loop planning and execution platforms
- Analytics that drive predictive decision making
- Automated workflows
- Partner collaboration facilitated by cloud computing
Connected Supply Chains help synchronize procurement, production, fulfillment and distribution activities across the entire organization and extended ecosystem.
Why Traditional Supply Chains Are No Longer Enough
Existing supply chain models were not built for today’s world of dynamic change. Here’s why many manufacturers are struggling with outdated operations:
- They rely on fragmented systems that lack end-to-end visibility.
- Processes are often manual, making it difficult to adapt during times of disruption.
- Planning models are reactive and cannot dynamically adjust to changing demand.
- Suppliers and logistics providers may operate in silos, limiting transparency.
Fragmented operations lead to blind spots, which hinder efficient and productive manufacturing. To overcome these obstacles, businesses must aim for seamless connectivity.
Supply chains of the future will leverage digital platforms to integrate data and enable holistic visibility.
Core Components of Connected Supply Chain Manufacturing
Digital Supply Chain Platform
Central to connectivity is a digital supply chain platform. This usually takes the form of a software solution that integrates data from your ERP, IoT sensors, logistics networks, supplier portals, customer demand data and more.
Manufacturing Supply Chain Visibility
One of the greatest benefits of connected supply chains is visibility into operations. This includes:
- Transparent view of inventory across locations
- Visibility into supplier performance
- Visibility into shipments and risk
- Insights into production status
Smart Manufacturing
Smart manufacturing lies at the core of connectivity. Sensors on equipment, inventory, materials, and more enable real-time data collection through connected systems.
IoT and Connected Factory
IoT sensors allow manufacturers to build connected factories that monitor workflows, inventory and performance metrics in real time.
Artificial Intelligence
AI powers advanced analytics that can be used for demand forecasting, risk detection, scenario modeling and more.
Automation
Routine workflows can be automated to reduce manual intervention and speed processes.
Supply Chain Digital Transformation Manufacturing: Automation Examples
- Automated procurement/order processing
- Supplier onboarding
- Inventory replenishment rules
- Digital invoicing & purchasing
As Hexaware has shown with clients, even simple automation can dramatically increase operational efficiency by eliminating manual tasks.
Key Benefits of Supply Chain Digital Transformation Manufacturing
Greater Resilience
When everything is connected, it’s easier to adapt to unexpected events. Supply chain disruptions can be mitigated with real-time data and predictive insights.
You can:
- Detect risk earlier
- Recalibrate your supply network when necessary
- Adjust inventory levels dynamically
Operational Excellence
Connected platforms tie together siloed functions under a unified umbrella. Efficiency is increased by:
- Decreasing cost to operate
- Minimizing delays and setbacks
- Shortening time to market
Ecosystem Collaboration
Supply chain connectivity doesn’t stop at internal operations. Smart supply chains also improve the flow of information and materials with suppliers, logistics providers, distributors, and sales teams.
Data Driven Decisions
Connected supply chains put reliable information at the fingertips of decision makers, empowering leaders to make intelligent strategic decisions rather than basing their judgments on historical data or gut feelings.
Elevating the Customer Experience
Perhaps best of all, customers will notice the impact of connected supply chains through:
- More reliable delivery commitments
- Easier order tracking
- Quicker response to shifting demand
Enabling Technologies for Connected Supply Chains in Manufacturing
Cloud Computing
Cloud platforms support digital supply chain solutions and enable worldwide access.
Internet of Things
IoT sensors are used to continuously monitor operations on the production floor and in logistics facilities.
Machine Learning and AI
Machine learning improves forecasting, planning, and anomaly detection.
Big Data Analytics
Advanced data analytics turn complex data sets into business insights. Hexaware explains the power of big data and advanced analytics in manufacturing here:
Robotic Process Automation
Robotic process automation (RPA) and workflow automation eliminate manual processes and increase productivity.
Building a Manufacturing Resilience Strategy with Connected Supply Chains
Supply chain resilience is more than a list of backup plans. It’s about redesigning supply chains for adaptability.
Step 1: Gain End to End Visibility
Visibility starts with mapping your supply chain ecosystem. This includes your suppliers, logistics providers, production facilities, and any additional organizations that play a role in your supply network.
Step 2: Modernize Outdated Technology
Replacement of old, manual IT systems with integrated digital platforms that support real-time connectivity.
Step 3: Put Data Governance Practices in Place
Data governance ensures consistent data across your organization’s systems.
Step 4: Implement Predictive Analytics
Traditional decision making is often reactive. With predictive analytics, you can anticipate potential disruptions and plan accordingly.
Step 5: Connect with Your Ecosystem
Finally, connected supply chains rely on digital interfaces that allow you to collaborate with partners.
Supply Chain Digital Transformation Manufacturing Use Cases
Predictive Inventory Management
Imagine being able to dynamically adjust inventory levels based on real-time data. Connected supply chains make this possible.
Intelligent Procurement
Similarly, you can use data from connected systems to make better sourcing decisions by analyzing supplier performance and risk.
Optimizing Production Schedules
Connected supply chain solutions allow production planning to be linked directly to demand, so you’re always producing what customers want.
Logistics Optimization
Transportation and logistics is another area of manufacturing that benefits greatly from connectivity. Connected logistics solutions allow you to:
- Optimize routes
- Reduce delivery times
- Decrease transportation costs
Digital Just in Time Manufacturing
JIT manufacturing can be optimized with better visibility into your supply chain.
Common Supply Chain Digital Transformation Roadblocks
Data Silos
Perhaps the biggest challenge faced by manufacturing companies is broken data siloes. There tends to be no standardized method of collecting or storing data. Integration platforms and APIs are a great place to start when looking to unify your data.
Change Management
Operating a connected supply chain requires buy in from your organization and employees. Ensure your team is ready for change by providing training and empowering employees to do their jobs more efficiently with technology.
Integration Difficulties
There are many technologies required for connected supply chains including AI, IoT, machine learning, and more. Figure out how each piece fits into your ecosystem.
Security Concerns
The more connected your systems, the more vulnerable you become to cyber attacks. Make sure your technology strategy includes a security plan.
Digital Engineering and Industry 4.0’s Impact
Industry 4.0 represents the future of manufacturing and it relies heavily on the technologies mentioned above. Digital engineering can help you:
- Model supply chain outcomes with simulation
- Create digital twins to better plan for production
- Implement automated decision making workflows
The Future of Connected Supply Chains in Manufacturing
Hyperautomation
Expect to see traditional planning and execution processes transformed by hyperautomation — automation + AI.
AI Enabled Supply Chain Control Towers
Control towers represent centralized hubs of visibility and decision-making intelligence.
Environmental Sustainability
Manufacturers will be able to track their emissions, resource usage, sustainable materials usage, ethical sourcing practices, and more.
Generative Artificial Intelligence
Gen AI will allow manufacturers to predict planning outcomes, automate documentation, and model hypothetical scenarios.
Collaborative Ecosystem Business Models
Supply chains will become more collaborative as manufacturers align themselves with partners to function as networks instead of linear supply chains.
At Hexaware, our mission is to help manufacturing organizations unify operations and enable data-driven transformation by modernizing legacy environments. Our expertise includes:
- Connected manufacturing ecosystem integration
- Digital transformation of IT and business operations
- Advanced analytics & automation
- IoT enabled manufacturing
Connected Supply Chain for Manufacturing with Hexaware
As we’ve discussed, connected supply chains are the future of manufacturing. If you want your organization to be resilient, agile, and profitable in the long run – start your supply chain digital transformation journey today.
By building a connected supply chain, you will gain end-to-end visibility into your operations, access to intelligent decision-making tools, and an overall more adaptive business model that can effectively manage change.
Let Hexaware help you unlock the power of connectivity in your supply chain.
