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Integrated Demand Planning: The Basis for the Digital Transformation of Supply Chains

The digitization of supply chains has increased the volume and quality of the data that companies obtain from their logistics processes, however the correct use of these continues to depend on the company’s ability to simplify and process the data to take right decisions with the information obtained.

Although companies spend a lot of effort to achieve operational efficiency and communication between areas, it is common to find that each department uses a different and even inadequate system such as spreadsheets, hindering the realistic view of operations that is the basis of planning. and foresight.

The practice of integrated planning is today one of the processes that provides greater visibility, precision, optimization and control of the supply chain since it naturally integrates the areas of Operations, Sales, Marketing and Purchasing. Facilitating joint analyzes, creating intelligent responses to market dynamics and even allowing the creation of hypothetical scenarios that answer questions such as changes in raw materials, new market opportunities or products, among others.

IBP is a comprehensive solution designed to provide basic analytics, visibility, collaboration and execution capabilities. “This technology tool helps organizations in all industries get closer to the real orchestration of the supply chain and maintain control of the costs and services delivered … Companies that manage to develop a well-integrated planning process (IBP) structured show profitability improvements of up to 17%, gross margin increase of up to 10%, and an increase in the return on assets of up to 7.5% after two years … Under this premise, we want to take our community to a second level in the knowledge and application of best practices accompanied by technology “- Bryan Buitrago, General Manager of Cerca Technology.

During the course of 2020, the company will be holding webinars, breakfasts and events focused on supply chain planning, where you can interact with IBP experts and improve your digital transformation process.

How to Guarantee CeDi’s Productivity in this Time of Crisis?

The economic impact that the arrival of Covid-19 has had in Latin America has left a tasteless in some sectors that have been deeply affected by the isolation measures and the various restrictions that governments have taken to protect their populations. However, amid the chaos, the pharmaceutical, hygiene, logistics services such as residential and transportation, retail, among others, have seen a significant increase in sales and operations.

In Colombia, in an analysis carried out in more than 62,000 shops by ServiPunto in alliance with Puntored, Servinformación, Nutresa and Bancolombia, it was detected that in Bogotá on March 20 (first day of the quarantine drill) there was an increase in sales of neighborhood stores 96% compared to the same day the previous month. This, if viewed from a logistical perspective, represents an increase in the workflow of the chains and suppliers that supply the stores, and at the same time an increase in the volumes and turnover of the merchandise.

In a survey of some of our clients in the region, we confirmed the increase in tasks within distribution centers, for example, one of the leading food distribution companies in Chile claimed to have doubled its sales and as a consequence increased demand for its supply chain by 100%. Similarly, in Colombia, one of our clients has reported growth of up to 300% in the last week. In the hygiene sector, our clients also report significant growth and operating peaks.

To meet these challenges, distribution centers need to increase their resources or improve their productivity. Having a WMS increases the accuracy of inventories, bringing it to 99.9%, which dramatically reduces errors in order preparation, however, to face the conjunctures of the current crisis due to the Covid-19 Additional measures are needed to increase productivity.

In times of crisis, doing “more” with the same resources is ideal and to achieve this, companies must ensure that the team has the best tools to facilitate their daily tasks and reduce the degree of human error to which the operation is exposed when There are so many adverse factors that operators must cope with.

The voice is the most effective form of communication par excellence, hence the companies that have implemented technological tools based on voice technology have guaranteed increases in the productivity of their CeDis between 15% and 30%, since they It allows users to have their hands free, providing greater concentration, speed in product handling and speed in confirmations.

Additionally, the use of this technology reduces training times due to its intuitive nature and thanks to the benefits generated in the enlistment processes and the need to extend performance levels, it has been linked to processes such as Lot Control, Product Traceability, Replenishment, Cross-docking, Transfer, Audit and Control, Cyclical Counting, among other tasks.

To learn more about the operation and benefits that this solution can bring to your company, leave us your information, so that one of our experts can contact you:

Workflow Solutions (VOZ) – DC

Get the best voice workflow processes enabled in your distribution center to optimize the workforce. Increase levels of operational efficiency, and manage a better business with voice.

  • Improved productivity

Increase the productivity of your operators. Manage workflows with hands and eyes, improving the speed of data capture and activities, reducing the error rate and increasing the concentration level of the workforce.

  • Inventory control

Decrease labor turnover and improve the learning curve of its workers in the distribution center.

  • Workforce retention

Decrease labor turnover and improve the learning curve of its workers in the distribution center.

  • Training plan

Train new and existing technicians quickly through easy-to-follow documentation and effective inspection processes.

Direct a user step by step in completing tasks through the voice solution and reduce training time.

 

COST REDUCTION BY EXECUTING MORE EFFICIENT PROCESSES

+99% of accuracy in inventory

+99% of accuracy in the fulfillment of orders

+35% of increase in productivity in the distribution center

 

Request more information by completing the following form:

Can Blockchain Technology Increase Visibility in Supply Chains?

Although the term Blockchain has been gaining strength in recent years, it is very likely that its closest interpretation is related to the financial industry and more specifically to cryptocurrencies. However, the technology behind Bitcoin and the rest of these currencies has great implications for a wide variety of industries, including logistics.

To briefly explain the concept of Blockchain, we will say that this technology allows the transfer and verification of encrypted information between peers, and each stage of said transaction creates a block of data that is stored in a public book. Each block is assigned a cryptographic key that contains information encoded with respect to the previous blocks in the chain. If someone tries to manipulate any link in the chain, it will make the key change making it immediately apparent. This achieves a high degree of reliability in information security.

About visibility…

We know that one of the biggest problems that arise in supply chains is the lack of visibility and that at the moment when a shipment leaves from its point of origin, the information that is available is scarce even when the company rely on ground tracking tools. Even these problems can be accentuated as the chain gets longer and the nodes increase. For example, a transported product may pass through different regulatory environments depending on the country (customs, health records, conditions such as incoterms, etc.), a variation in the means of transportation (air, land, sea, rail, etc.) may be required and In addition, special transport care may be required, such as the environment in which it must be transported, among many others.

There are currently tools that allow customers and suppliers to track their merchandise in real time but in a timely manner. With Blockchain technology, collaboration between the different stakeholders in the chain is much more fluid and secure. You can make decisions faster and even transactions can be generated by eliminating third parties and cost overruns (Smart Contract). Therefore, the difference in addition to transparency and security lies in the detail of the information that can be obtained during the process.

A clear example is the linking of sensors in the containers to the blockchain. These can be scanned by a device that will automatically create an entry in the blockchain ledger, giving the option to any company with a legitimate interest in shipping, which verifies the ledger and knows the conditions of the container and its content at any stage of process. If, for example, the damaged goods arrived in a shipment of perishable products, it would be easier to identify when the container lost the acceptable refrigeration parameters through blockchian technology. In this way the great blockchain book will allow you to identify if there are parts of the supply chain that are failing and adjust them.

In conclusion, new disruptive technologies such as Blockchain open a number of possibilities to the industry; However, it is important to understand that these types of changes (which are part of the so-called “fourth industrial revolution”) is not a leap that can happen overnight. In an investigation carried out by WBR Insigthts, Alexander Kharlamov, an IoT expert applied to business models and a member of one of the research teams of a project on enablers for the collection of personal data use made up of universities such as Cambridge, Warwick, Surrey and UWE said that the adoption of blockchain technology in supply chains requires that people, the process and technology be ready. Kharlamov added that the success of this technology in the future lies in overcoming the challenge posed by human behavior, as people’s habits have shown that they do not reach high yields when exposed to large volumes of data.

Author: Pablo García, Senior Client Development Consultant at Cerca Technology

Sources:

Preukschat, Alex. Blockchain: La Revolución Industrial de Internet. 2da edición, Paidós Empresa, 2018.

Abrams, Deborah. (2018). 6 questions and 1 answer about blockchain inlogistics. Supplychaindive. https://bit.ly/2uiEVqt

Kharlamov, Alexander, A. (2018). Advanced Supply Chains: Visibility, Blockchian and Human Behaviour. ResearchGate. https://bit.ly/2MhrEt4

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