In today's rapidly evolving business landscape, supply chains face unprecedented challenges. From unpredictable demand fluctuations to disruptions in production and transportation, businesses across the globe are grappling with the complexities of maintaining seamless operations. The key to addressing this lies in integrating planning and execution in a well-orchestrated supply chain.
At the heart of a well-orchestrated supply chain is a collaborative and modular framework empowered by technology and expertise. It is within this framework that planning and execution processes are brought together.
Synchronized, end-to-end supply chain planning
Effective planning is the cornerstone of a resilient supply chain. Yet despite this, many businesses struggle to carry out accurate, high-quality planning. And fewer still manage to integrate operational parameters in supply chain planning to address existing operational constraints.
Where planning is concerned, orchestrating the supply chain properly means strategically aligning resources and processes to match accurate demand planning with capacities. Using an orchestrated approach, leveraged by advanced tools and collaborative processes, businesses can create and optimize an accurate and feasible end-to-end plan.
Supply chain orchestration makes it possible to coordinate and execute different planning activities including demand planning, production planning, capacity planning, supply planning, and inventory management across the entire supply chain – synchronously. This results in short but accurate S&OP and S&OE cycles while increasing the supply chain’s agility in the face of rising volatility and disruption.
In considering operational constraints and offering a quick and proactive response to change in real-time, the benefits of optimized, concurrent planning include reduced lead times, resource optimization, cost savings and improved service levels.
Execution: creating an end-to-end orchestration layer
The other pillar lies in supply chain execution. Through enabling a concurrent and collaborative approach in the planning phase, significant improvements in execution capabilities result naturally.
An orchestrated approach to execution offers end-to-end transparency and the ability to manage all segments of the supply chain, while improving service levels and minimizing impacts. This is accomplished using a collaborative approach to find and implement the right solutions. The approach integrates end-to-end transparency and management to navigate all segments of the supply chain, improving service levels, minimizing impacts, and enhancing overall operational resilience.
Through an orchestration layer, data from different legacy systems such as ERP, TMS, WMS are harmonized to create end-to-end transparency. Thanks to an integrated planning capability, a centralized orchestration team evaluates the impact of disruption on the end customers and proposes solutions to minimize the impacts on revenue and profits.
With the collaboration framework and an interface back to the transactional system, solutions can be implemented quickly by the relevant stakeholder in the supply chain.
The journey to supply chain orchestration
The journey towards a well-orchestrated supply chain requires a clear roadmap, that can be broken down into the following steps and by asking the following questions:
4flow's approach to supply chain orchestration
At 4flow we understand the complexities of today’s supply chains. We can offer comprehensive support tailored to the different needs of our customers.
In taking customers on the supply chain orchestration journey, we focus on six essential areas:
Organization and governance
Performance measurement
Business processes and people
Culture, behaviors and ways of working
Data
Technology
Our approach brings numerous benefits to supply chain planning and execution processes – whether it’s achieving savings in costs and resources or using the latest trends in new technology. We offer end-to-end optimization from strategy to implementation, suitable for the most complex environments.
In helping to break-up silos and rapidly deploy new capabilities, the advantages of supply chain orchestration can bring numerous benefits to your organization.
The content of this article is based on the presentation given by the authors at SITL (Salon International du Transport et de la Logistique) in Paris, France in March 2024.
Authors
Antoine Clogne
Director
4flow management
Alain Joyeux
Managing director
4flow France