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Creating a Digital Supply Chain

Although I’ve heard much talk about Industry 4.0 & the Digital Supply Chain, it seems that many organisations are still struggling to understand the benefits of digitising their supply chain.

Having pioneered a truly integrated digital solution, I would not only like to thank my great team but also our logistics partners (DSV Panalpina, Pantos Logistics and Dachser below) who adopted the 4.0 concept and embraced it. I refer to my logistics providers as ‘partners’ in the true sense seeing & valuing them as an extension of my own team.

The cross functional internal and external teams managed to collaborate & achieve complete digital sequence of planning and ordering solutions that worked in tandem creating a visibility, not only a container level but also part level visibility across each touch point of the value chain. The digitization covered the complete P2P process, which included the automated invoicing and payment process with only the need for human intervention during exception management events with pro-active notifications of service failures.

Having achieved a digitalised process, the realised tangible benefits that were apparent to all stakeholders including our logistics partners. Not only was there a significant decrease in the Takt-Time taken to transact each entry but the accuracy was 100% in the data, which reduce errors, related hidden costs and increased customer satisfaction. Based on management by exception, the digitisation process increased productivity of employee’s by freeing up time to focus on more value add work giving back a higher Return on Investment per FTE.

From the service provider side, the transactional management cost of each shipment was significantly reduced meaning that the logistics provider could do more without increasing incremental headcount with any increase in business. The benefits for me, the customer, meant that my logistics providers would maintain an USP over their competitors, which would benefit my organization in the long term.

The seamless integration across difference platforms (IOT) resulted in cost savings, reduction in overtime, workforce, improved process efficiencies, full visibility & traceability of products (which is so critical in today’s supply chain for aerospace, automotive, pharmaceutical, cold chain & F&B) providing a more agile and flexible supply chain.
In terms of lessons learnt, one key element that became apparent was that you don’t need to be an IT guru to achieve digitisation. What you need is lateral and logical thought process and team who can see and relate to your vision. Having the right people on the bus and the right leadership to drive the initiate empowered the team to make the difference in achieving success, which they with amazing enthusiasm and innovation!

 

ABOUT THE AUTHOR

Tony Lugg

Tony is the Director of Logistics & Centre of Excellence for a leading Tier One Fortune 500 Automotive company and has over 15 years’ experience in the global supply chain.

He is also an entrepreneur and Digital Transformation Champion having pioneered and transformed the purchase-2-payment of a complex automotive supply chain across Asia. He previously managed ‘Location Based GIS Services’ real-time dynamic speed limiting & tracking solutions as well as OTA remote vehicle control.

Tony has built supply chains across high risk & complex environments achieving zero failure with the use of technology as a business enabler.

Tony works with standards bodies, government agencies, academic institutions, and industry associations to help supply chain stakeholders identify opportunities to make their supply chain operations more resilient and sustainable to improve their business models.

As well as being a TAPA Certified Expert, Tony has won two awards namely Supply Chain Resilience Award and the Supply Chain Risk Management Award having designed and sustainable supply chains with the adoption of integrated supply chain business process mapped against IOT.

He is currently the Chairman of Transported Asset Protection Association (TAPA Asia) and sits on the Emeritus Council of Advisors for Supply Chain Asia.

Tony holds a Post Graduate Award in Management & Business Studies from the University of Warwick and holds qualifications in Electrical Installation & Electronics.

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