We all know that global supply chain disruptions pose significant challenges for manufacturing companies. This was clearly evident in the years 2020-2021 when a shortage of semiconductors paralyzed the operations of many manufacturing companies, such as car manufacturers. We realized back then that market conditions could change dramatically literally overnight. Therefore, it is extremely important to maintain a supply chain that is resilient to unforeseen changes. However, the question arises: how can this be done?
Intelligent demand forecasting and planning
The first step in ensuring supply chain stability is access to always-updated market data and utilizing it to develop advanced demand forecasting models. This enables the optimization of the planning process, thereby allowing better alignment of production with changing market conditions.
Real-time visibility and risk management
Another crucial element is ensuring continuous visibility in the supply chain and effective risk management. This allows manufacturers to make quick decisions in case of disruptions, minimizing their negative impact on company operations.
Seamless warehousing and order fulfillment
Effective warehouse management and order fulfillment are key elements of a smooth supply chain operation. Utilizing data from the supply chain enables better inventory management and ensures rapid and error-free order fulfillment. This translates into customer satisfaction and operational efficiency.
Cloud-based IT solutions in supply chain management
These tasks cannot be accomplished without modern IT solutions. The first step in building a resilient supply chain should be migrating data and applications to the cloud. The next step in building resilience involves using low-code or no-code tools to develop useful business applications leveraging the capabilities of artificial intelligence. These solutions enable extracting data from supply chain resources. Their analysis significantly speeds up the decision-making process. An example of such an application could be an AI-based tool that analyzes supplier contracts to assess risk and identify areas requiring attention or mitigation strategies.
To create more resilient supply chains, manufacturing companies should focus more on operations and finance, while ensuring key functionalities essential for supply chain management. Transitioning to the cloud provides the best infrastructure for manufacturers using business applications for enterprise resource planning (ERP), allowing for rapid knowledge sharing about resources and utilizing advanced data analysis capabilities.
Improving the supply chain for manufacturing companies will not be possible without digital transformation. It requires a focus on intelligent demand forecasting, continuous access to real-time data, and effective warehouse management and order fulfillment. Companies that invest in these areas can achieve a significant competitive advantage in the market.
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