Volatile times demand pervasive supply chain visibility, says IBM
1 min read
The number one supply chain challenge is overwhelming and fragmented nature of data, and an inability to make sense out of it – yet fixing that problem is low on action plans because it is costly, difficult and supply chain professionals are just too busy.
That’s the real world according to 70% of respondents to IBM’s Global Supply Chain study, based on face-to-face interviews with nearly 400 supply chain executives in 25 countries.
Their number two issue is having the visibility and flexibility to manage risk, with 60% saying this is escalating as a concern. Just 16% indicated that they are effective at integration and visibility of information across the supply chain with external partners.
The study proves that the greatest opportunity is smart devices around supply chains and integrated ERP systems that capture their data and provide real-time visibility of: forecasts, orders, schedules, commitments, pipeline inventory and shipment lifecycle status.
Sanjeev Nagrath, global leader, supply chain management, IBM Global Business Services, says that automating real-time detection with smart devices increases flexibility, speed and accuracy to promote better decision-making.
“As important as cheaper, faster, better is, this year we’re beginning to hear a new verse – a clear message about the overwhelming need for greater visibility and flexibility to manage risk,” says Nagrath.
“A crisis in one country or region can now ripple very quickly across the world economy, creating tremendous turbulence. As supply chains have become more complex, global and stressed, the executives we spoke with believe they must drive far more intelligence throughout their supply chains if they are going to anticipate, rather than react.”
IBM’s report calls for supply chains to be “thoroughly instrumented, interconnected and intelligent”. They should also “bring together the ability of human know-how and technological excellence to make optimal use of machine-generated data – flowing out of sensors, RFID tags, meters, actuators, and GPS”.
