Making the Case for Enhanced Visibility Through Modern Technology

Introduction

In a rapidly evolving marketplace, visibility within the supply chain is paramount. Jeffrey L., Portfolio Development Executive with Siemens Digital Logistics, sheds light on why this is an essential focus for businesses today. During a discussion at Manifest, he elaborates on how visibility can significantly improve operations and decision-making, ultimately enhancing customer satisfaction and revenue.

The Importance of Visibility

Jeffrey underscores that visibility is crucial because it allows companies to measure and thereby improve their processes. This increased transparency lets customers know when their orders will arrive, and it helps manufacturers track incoming goods necessary for production. Without visibility, optimizing these processes becomes a guessing game.

Using Data for Improvement

Many companies already collect data but primarily use it for informational purposes, such as notifying customers of shipment delays. Jeffrey suggests that instead of just sitting on this data, businesses can leverage it to predict outcomes and identify areas for improvement. This is where the concept of the digital twin comes into play.

The Digital Twin Concept

A digital twin is a virtual model that mirrors a physical process. By collecting and analyzing data on current visibility, companies can simulate "what if" scenarios to predict future outcomes without any real-world risk. For example, what if a company shifts its delivery port from Los Angeles to Oakland? How much improvement can they expect in terms of efficiency and cost? The digital twin allows companies to explore these scenarios within a sandbox environment.

The Evolution of Supply Chain Management

Jeffrey points out that supply chain management is not a new concept. Still, the digital twin and visibility tools have risen to prominence because customers now expect faster service. These tools allow companies to meet these modern demands, thereby driving brand loyalty and increasing revenue.

Decision-Making in the Age of AI

When discussing decision-making, Jeffrey explains that it's a dual process. Initially, there's a financial investment in collecting and storing data. However, once a digital twin has been developed, it becomes a collaborative tool that various internal stakeholders can use to devise and test new strategies. This iterative process ensures continuous improvement.

Continuous Improvement

The digital twin is not a one-time-use tool. Successful companies continually refine their processes, leveraging the digital twin to test new scenarios, whether quarterly, semi-annually, or annually. This allows them to adapt to changing global conditions and improve their operations.

Real-World Challenges

Jeffrey highlights current global challenges, such as low water levels in the Panama Canal and viability issues with the Suez Canal. Tools like the digital twin can simulate alternative routes and logistic strategies to mitigate these challenges, providing companies with viable, real-world solutions.

Siemens Digital Logistics

Siemens Digital Logistics offers digital twin technology and platforms for supply chain optimization and supplier collaboration. They recently added a feature for tracking Scope 3 carbon emissions, aiding businesses in their commitment to reducing greenhouse gases.

Conclusion

Jeffrey L.'s insights demonstrate how visibility and digital twin technology can revolutionize supply chain management, enabling businesses to make informed, data-driven decisions that improve efficiency, customer satisfaction, and financial performance.

Keywords

Visibility
Digital Twin
Supply Chain
Siemens Digital Logistics
Data Analysis
Iterative Process
Customer Satisfaction
Global Supply Chain Challenges
Carbon Emissions
Artificial Intelligence

FAQs

Q: What is the importance of visibility in the supply chain?

A: Visibility allows companies to measure and improve their processes, ensuring they can meet their production schedules and customer expectations efficiently.

Q: How can companies utilize the data they collect?

A: Instead of using data merely for informational purposes, companies can leverage it to predict outcomes and identify areas for improvement using digital twin technology.

Q: What is a digital twin?

A: A digital twin is a virtual model that replicates a physical process, allowing companies to test "what if" scenarios in a risk-free environment.

Q: Why is continuous improvement vital in supply chain management?

A: Continuous improvement allows companies to stay adaptive to changing global conditions and continually enhance their operations by regularly testing new strategies using a digital twin.

Q: What challenges can digital twin technology address?

A: Digital twin technology can simulate alternative routes and logistic strategies to mitigate real-world challenges like the current issues with the Panama and Suez Canals.

Q: What does Siemens Digital Logistics offer?

A: Siemens Digital Logistics provides digital twin technology, supply chain optimization platforms, and tools for tracking Scope 3 carbon emissions to help businesses improve efficiency and commit to reducing greenhouse gases.