🌍 The digital supply chain of the future under the conditions of multidimensional disruption - a key to the future. 🔑
Last week, I had the opportunity to discuss the future of the digital supply chain in many different contexts. Link to the post
One of the highlights was my keynote speech on (P)LM, ERP, MES and CRM - a new perspective, a new universe. This both at the
- 👉 30th anniversary of the ISAP AG with Daniel Dirssler (great event, impressive location: Link to the post) as well as with the
- 👉 SAP Co-Innovation Council with Ismail Serin and Frederik Breckwoldt (Link to the post). 🌟
Exciting discussions revealed a strong trend for the digital supply chain of the future.
A key for the discrete industry is the realization of hybrid modular building blocks in international factory networks with full traceability, transparency and cost control in cross-company scenarios. 🛠️
Some of you may say: "We've been discussing this for 20 years!" And some may claim that they can already do it. But my experience shows that although there are great approaches, the topic is still in its infancy.
However, it is becoming clear from the discussions that we are on the verge of being able to fully penetrate this topic methodically, explain it in detail and - assuming a suitable combination of IT providers - map it consistently in the IT systems. 💡
Now for a brief explanation of the terms:
- 👉 Hybrid construction kits
are fully configurable modules, some of which are already industrialized in the factory network and some of which are not. They combine the previous process patterns CTO/ETO/ETO-A and STO (often subsumed as CTO+) in a hierarchically nested manner and can be combined to form CTO+. The industrialization of these takes place in ERP-related PLM, in which the local M(RP)BOM sinippets (substructure at sheet level) are supplemented from the parts of the EBOM or TOS (I will deal with this in a future post). - 👉 International plant network with full traceability, transparency and cost control in intercompany scenarios
requires M(RP)-BOMs in the plant network supplemented by the logistics levels, e.g. for international cost calculation, operational make or buy, local content and local refinement.
It was a great, intensive week and I look forward to further discussions and implementation projects. Implementing these approaches is a big task. We can't afford to make many mistakes. In addition, the intensity and effort involved is often a blind spot for the management level.
Well, it's like always with the king cases. They are extremely challenging, but the one who achieves them first is the king 😊.
So, what do you think? I look forward to hearing your insights on this topic! 📢
Future Digital Supply Chain - Outsourcing was Yesterday! Why We Need Flexible Production in International Plant Networks 🌍🔗
🌱 Resilience, sustainability, flexible sourcing, environmental compliance, digital supply chain - buzzwords you've probably heard before. But how are they connected?
...and what do PLM, ERP and the M(RP)-BOM have to do with it? 🤔
I would like to approach the topic in a series of posts. Today I'm going to start at the beginning and write until LinkedIn's text limit stops me 😊.
Outsourcing was still hip in the 90s and 00s. The primary goal was to reduce manufacturing costs and thus be able to compete internationally. Digitalization and concerns about the disruption of business models then shifted the focus to innovation and technology leadership. Being able to supply customers with a technologically superior product that meets their individual requirements was the key 🔑.
The COVID pandemic has raised awareness of the fragility of supply chains. The trending topic of sustainability, which brings with it a multitude of regulations and requirements, is now another issue that companies have to face.
Well, the solution is the ability to produce flexibly in an international network of plants. Why is that the case?
In order to comply with local regulations and to be able to respond to individual customer needs, the ability to customize regionally is essential. Distributed component production in different units is necessary in order to be able to procure critical components of the product flexibly and reliably depending on the current situation in the supply chain. This also makes it possible to promote sustainability, as flexible production can take place where production resources - above all energy - are available in a particularly climate-neutral and cost-effective manner.
The ability to produce flexibly in international plant networks will therefore be key in the future 🌟.
How can this actually be implemented? This is where our RIM approach of Prospective Resilience through holistic management of the Digital Supply Chain in an integrated Plant Network comes in.
I will explain exactly how this works in a series of posts, which I will summarize here on our blog: https://stz-rim.com/digital-supply-chain/.
An M(RP) BOM that is capable of supporting an intercompany process in conjunction with an ERP system that can map the intercompany processes of legally independent units within the group is an absolute prerequisite.
Well, what do you think? How do you see the need for production in an international plant network? 💭
And if you need support in designing your plant network, contact us today 👉
#DigitalSupplyChain #Innovation #Sustainability #ERP #Technology #BusinessResilience #FutureOfWork
Future Digital Supply Chain - M(RP)-BOM as Key for International Plant Networks and Intercompany Processes - Today Just the Basics 🌐🔑
Another post in my series on the Future Digital Supply Chain and the need for International Plant Networks.
It is about the central data structure and thus the key that makes such processes possible in the first place.
It is the M(RP)-BOM (not the MBOM!) that makes intercompany processes possible in the first place with its MRP levels (not always assemblies).
In order to be able to create value between plants in different legal entities, it is necessary to track quantities and value flows between these business units and to be able to report intra-group value creation.
What are disposition levels?
In the past, we often used the term assemblies to refer to construction stages of a product that can be assembled.
MRP levels are now structural units that map the physical entities that are stored within plants and/or delivered between plants. They are also valued in terms of cost and therefore also represent the value flow and the increase in value of a product. MRP levels can be assembled modules, but they do not have to be. Sometimes they are just logistically related groups.
The picture shows an example situation in which three plants work together. A product is manufactured that is fully assembled and delivered in the domestic market (company headquarters). For the international market, the product is assembled in a final assembly plant and then adapted to the local market via local customization in the local subsidiaries.
The key to the deliveries between the plants within the legal entities are the disposition levels in the M(RP) boms (red nodes) in the image.
In terms of structural semantics, I would like to emphasize some typical features that are noted in the image in details A, B and C.
Figure Detail A: Local sourcing. The two assemblies in the parts lists have material from different suppliers in the structure. It must be carefully considered how this is mapped in order to enable flexible control of the supply chain.
Figure Detail B: The lead plant is the component supplier for the final assembly plant. The MRP stage must then be mapped in the Lead Plant. However, this is often not the case if the Lead Plant is often optimized for line assembly with a bead chain.
Image Detail C: Local Customizing Scope. A local change to the product for the regional market. These cases often go unnoticed in today's ERP and PLM systems, as the plants carry out customizing independently. However, this is increasingly becoming a risk due to verification obligations. Modern structural concepts are needed to resolve this dilemma.
As you can see, the M(RP)-BOM is the key to working in the corporate network. It is a far cry from the idea of MBOM as we once saw it in the digital factory. As working in a plant network is becoming increasingly important, I believe it is imperative for companies to come up with a holistic concept for a modern M(RP)-BOM.
What do you think?
#SupplyChain #DigitalTransformation #Industry4.0 #Manufacturing #ERP #PLM #Innovation
