Tag: supplychain

Large enterprises, forced to innovate by supply chain disruption, see costs and complexity ramp up

Two-thirds (66%) of large enterprises globally say they are keeping more stock on hand now compared to the pre-pandemic period, with nearly one in five in total (18%) retaining ‘significantly more’ stock. This growing focus on taking innovative measures to address supply chain disruption is highlighted in new research commissioned by IFS, polling over 1,450 senior decision-makers at large enterprises across France, Germany, Nordics, USA, the UK and the UAE.

Further highlighting the impact of supply chain disruption, seven out of ten respondents polled for the survey (70%) said they had increased the number of suppliers of materials/products they use in response to recent supply chain issues. Moreover, nearly three-quarters (72%) of the survey sample claimed to have grown the proportion of materials/products they source from domestic suppliers as a result of these issues.

Together, these innovative measures are also likely to add more complexity and waste into the supply chain, at a time when increased regulatory burdens (highlighted by 15% as a primary contributor to their current business disruption) and the  need to tap into the many benefits of the circular economy is making supply chain management more complex. In line with this, it is positive that 93% of respondents said their organization was either embracing the circular economy today or planning to in the future.

However, many are facing challenges in terms of delivering on their goals, with around 60% of those saying they are in the process; still developing objectives; yet to plan programs; or have their objectives on hold. Even among those respondents already embracing the circular economy, 23% felt their customers’ circularity expectations were either having no impact on the customer experience or were detrimental to it, although over time the benefits of circularity in delivering a better customer experience are likely to become ever clearer.

So far, as the survey indicates, many large enterprises have re-engineered their supply chain in innovative ways to reduce the risk of this disruption. These include: onshoring to improve security of supply; keeping more stock on hand to make certain they can always meet demand and increasing the number of suppliers they use to eliminate any chance of disappointing customers.

Maggie Slowik, Global Industry Director for Manufacturing at IFS, said: “Large businesses are likely to incur much higher costs and other negative financial impacts because of the measures they are taking to mitigate disruption. Onshoring the supply chain will often lead to having to invest in more expensive raw materials or product components, especially as inflation ramps up, while keeping stock on hand will tie up significant sums that could otherwise be ‘working’ for the business.”

Despite the far-reaching benefits of the circular economy, the need to embrace it is nevertheless a source of disruption for many large enterprises – especially if their equipment and processes are not set up to deal with waste reduction and the re-use and recycling of materials. That’s particularly the case when you factor in the other macro-economic disruption that businesses are continuing to face from COVID-19 to the war in Ukraine.

At the same time, the survey reveals many large businesses are suffering from talent shortages. 65% of respondents say their organizations are finding it challenging to fill open roles, (with a lack of qualified applicants and skilled talent being the most prevalent reasons why), and 39% think disruption relating skills shortages within their organization will last beyond the end of 2022.

According to Slowik: “Businesses urgently need to find a solution that can help them to manage this disruption, which with price volatility is escalating ever further, transition to a circular economy and address the supply chain complexities we are dealing with today. To do this, especially when skills are in short supply, they will ultimately need to invest in technology that delivers the agility and fast time to insight that they need to better forecast demand. By addressing it now efficiently and cost-effectively, they will put themselves in a great position to not only survive but also thrive long into the future.”  

Irish tech firm Replan launches revolutionary supply chain planning software following £2m investment boost

Ground-breaking solution leverages AI modelling to streamline complex supply chains

Supply chain technology company, Replan, today announced a £2m investment round, led by Hoxton Ventures, the top early-stage venture firm in London, to support the launch of a transformative new production planning software for manufacturers. The tool is the first of its kind to combine dynamic production sequences with mid-term group level planning, empowering companies to navigate and respond to increasing supply chain disruption.

The funding is the latest in over £5m raised to-date by the company and will support ongoing product development and market growth in the UK and Europe, as well as future expansion into North America.  Replan was cherry picked by investors for its potential for fast growth and innovative technology that promises to revolutionise complex supply chain planning with pre-configured AI and advanced analytics.

Supply chain leaders will now be able to transform and scale production planning with a solution that rapidly automates and evaluates multiple scenarios, helping manufacturers to reduce cost, increase efficiency, and respond to disruption faster. The software enables planners to generate complex production sequencing in minutes, automatically applying the right AI algorithm to gain full control over demand forecasting and supply chain planning.

Replan

Hussein Kanji, Partner, Hoxton Ventures comments: “Replan’s technology is key to keeping the manufacturing supply chain efficient and moving. The company is tackling critical planning challenges that went largely unaddressed before Covid, but that cause costs and delays for manufacturers.”

The launch comes as supply chains continue to experience disruption due to the pandemic, supply shortages and geopolitical unrest. With the volume and velocity of change exposing critical technology and processing problems at the heart of supply chains, manufacturers are increasingly seeking to leverage digital transformation to transform and scale production planning and meet business and sustainability goals.

Richie Barter, CEO at Replan, adds: “Replan embeds cutting-edge AI modelling and optimisation capabilities within a modern, intuitive user interface to shake up the status quo and revolutionise supply chain planning. The software can streamline even the most complex production plans, helping manufacturers to improve operational efficiency and build more agile and resilient supply chains.”

 

More information about Replan can be found here.

“MIND-SHIFT: A Compendium on Future Mobility, Circularity and New Urbanism“

The eagerly awaited study “MIND-SHIFT: A Compendium on Future Mobility, Circularity and New Urbanism“ will be presented to the public, the impressive result of six months of in-depth research and analysis of English- and German-language lead media data.

Oliver Heyden, Chief Strategic Officer of pressrelations, talks about the methodology used during research: “We centered our research program FirstSignals ® on the systematic way for early recognition of future trends which opened up our analytic focus to totally new connectivities and developments, making it possible for us to recognize innovative and new dynamic perspectives. To put it in other words: we have concentrated our efforts on what moves mobility in the real sense of the word by looking at what serves as basis for the awareness in English- and German language lead media.”

E-Mobility, Software & In-Car-Tech, Circularity & Sustainability, New Urbanism and Logistics are some of the central issues at the heart of the new study, a preview of the fascinating subject matters and possible solutions awaiting all of us, and an in-depth look at the challenges, the latest developments and opportunities of the future.

Just in the field of mobility and digitization, media coverage increased by a phenomenal 800% in the past year alone with the main focus on digital services in the automotive industry. For 40% of the European customers, and 80% of those from China, the improved range of products in that specific field was reason enough to change their automotive brand.

The inadequate charging infrastructure is still the main discussion point when talking about mobility. Huge electric charging stations with quick-charging points represent old conventional gas station-thinking from the time of combustion engines. That slows down an effective build-up of a network of charging points as they turned out to be too expensive, too complex, and take too much time to install. Small charging points – like parking meters – are needed instead to take advantage of the ever-present availability of electricity. That way the downtime of cars, 85% of their time after all, could be used effectively.

The paradigm of smart cities loses attractiveness, for years the dominant factor in urban research. Urban flight has become a mass phenomenon, and so has become a serious concern for the cities. In its stead, urban concepts are concentrating more and more on quality of life and climate resilience.

Another example is “Shipageddon,” the supply-chain-crisis in the field of logistics. Mark Leonard, one of the world’s leading political scientists, has called it “the Connectivity Wars,” increasing protectionism globally leading to an increase in bilateral trade agreements from 38 in 1994 to 354 today.

“Shipageddon” transformed the entire global logistics industry and causes “Near-Shoring” and “Back-Shoring,” thus creating a new megatrend: circularity.

Dr. Hans Hamer, CEO of SHIFT Mobility, sees a unique approach towards the future in the holistic nature of “MIND-SHIFT: A Compendium on Future Mobility, Circularity and New Urbanism.”

“Inspiration and new ideas are mostly found at the interface where industries overlap and cross-pollinate, and so turn into a kind of a breeding ground for innovation. That is why we are looking at the entirety of the mobility ecosystem in the study, and that is why that interconnectivity is becoming such a seismograph for future developments in mobility.”

On March 30, 2022, Dr. Hans Hamer and Oliver Heyden will present first results to a prestigious group of scientists, politicians and business leaders from the mobility industries at the restaurant “Borchardt” in Berlin.