Smarter, Not Harder: How to Climb Every Peak in Supply Chain Planning
Supply chain planning is like a grand mountaineering expedition. Every step is meticulously mapped out to manage immediate needs and challenges while uncovering and navigating intricate risks hidden within each layer.
But instead of reaching just one peak, supply chain planners must climb four – service, inventory, cost, and sustainability. Each one has its own unique conditions, complexities, risks, and opportunities. Yet, all of them must be conquered before planners can triumphantly plant their flag of supply chain excellence.
According to Logility’s senior business consultant Hans Vethuizen, a dynamic supply chain planning journey calls for the right platform – a base camp supporting the needs of the entire supply chain planning process.
“The strength of a comprehensive digital supply chain platform lies in the primary supply level and extends remarkably to the fifth tier. It offers unparalleled visibility, traceability, and disclosure – the true essence of each product’s journey from origin to delivery,” says Vethuizen at this year’s inNOWvate Supply Chain Event.
Coordinate every step with insight and action
Companies using a platform that synergizes service, inventory, cost, and sustainability stand at the precipice of a highly progressive approach to supply chain planning.
Take, for example, PVH. The fashion house of iconic brands like Tommy Hilfiger and Calvin Klein transparently manages and navigates the full spectrum of its supply chain – from cotton farms and fabric mills to yarn spinners and final product manufacturers. Even before importing and selling any item, every step addresses complex challenges amplified by regulations dictating the origin of goods and ethical sourcing and labor practices.
“PVH’s dedication reverberates across its landscape of supply chain elements and complexities through Logility’s Digital Supply Chain Platform,” Vethuizen shares. “While earning consumer trust and practicing environmental stewardship, the company guides the way to the future of responsible business practices.”
Underpinned by the Logility platform, these achievements include superior inventory equilibrium through peak planning seamlessly interwoven with an unwavering commitment to eradicating waste and obsolescence. Moreover, the platform casts a bright spotlight on the crucial benefits of visibility permeating the multi-tier supply web.
Unveil a world of optimization and progress
Effective supply chain management involves numerous factors, including the number of suppliers. The average volume, rising expenditures, and varying price arrangements for each item across multiple suppliers further complicate the procurement landscape.
“The versatility of an end-to-end platform, like the Logility platform, offers a unique advantage,” Vethuizen emphasizes. “It comprehensively connects every supply and demand node, enabling a detailed assessment of how demand can impact a company’s resilience index. Planners can then pinpoint revenue at risk due to a high resilience index, transcending the conventional scope of multi-sourcing strategies.”
Recognizing supply chain resiliency also depends on meeting compliance standards, companies leverage the platform to gain well-rounded multi-tier visibility into supplier adherence to internal company policies and government mandates.
“Compliance spans various dimensions such as environmental sustainability, quality, and security. This broad spectrum must be captured fully, including metrics on energy consumption, water usage, and overall environmental impact,” explains Vethuizen. “The platform’s ability to aggregate these metrics into a cohesive sustainability score offers a nuanced evaluation of supplier practices.”
Leverage a confluence of visibility, planning, and sustainability
The digital supply chain twin framework is another pivotal capability the Logility platform offers to model and optimize supply chains. Businesses can streamline operations by digitally representing nodes, routes, constraints, and demands while reducing costs and increasing service quality.
Vethuizen affirms, “The digital supply chain twin’s holistic approach harmonizes operational efficiency and sustainability goals. Creating scenarios within the digital supply chain twin opens avenues for informed decision-making, such as optimal placement of new distribution centers or analyzing the impact of potential disruptions.”
Comparing scenarios extends the framework’s utility, providing insights into various facets, such as cost, service time, and environmental footprint. For example, some businesses link QR codes to products to elevate the transparency and accountability of their supply chain origin. Through the Logility platform, supply chain planners can access a trove of information that helps assure a product’s authenticity and reinforce regulatory compliance and sustainability KPIs.
Quantifying carbon emissions at each supply chain node elevates the product’s digital passport. Businesses can leverage this data to communicate their offerings’ environmental, security, and quality impacts. Tangible proof of sustainable practices positions companies to foster brand loyalty and expand market share among a consumer base valuing eco-conscious products.
Scale every peak with resilience and vision
In the realm of supply chain planning, conquering every peak demands a blend of strategic foresight, analytical acumen, and collaborative spirit. The supply chain planner fortifies an organization’s resilience and charts new horizons to achieve even greater heights in the dynamic landscape of global commerce.
Combining sophisticated concepts and technologies, the Logility platform equips supply chain planners and the rest of the business with a comprehensive grasp of supply chain dynamics. This insight empowers companies to integrate operational efficiency with compliance and sustainability, cultivating customer loyalty and a more sustainable planet.
Just as mountaineers leave their mark on conquered summits, those who master the peaks of supply chain planning with Logility’s platform leave an indelible imprint on their industry’s competitive landscape.