Share this article
Follow us on Linkedin
Modern problems require modern solutions in today’s supply chain network. Today, there are no longer simple linear processes, but complex networks requiring seamless collaboration, advanced technology, and sustainability considerations. As modernization impacts supply chains at an exponential speed, business who fail in adapting against business challenges with wholistic enterprise solutions will be left behind. While there are many key components a company needs to be aware of to future proof their business within the supply chain industry, addressing the following elements of the supply chain can help businesses gain footing and become proactive instead of reactive.
Connected Supply Chain: A network, not a chain.
The emphasis on a connected supply chain is paramount. Companies are shifting from isolated operations to integrated systems where internal departments and external partners share data for enhanced efficiency. This connectivity ensures smoother processes and better decision-making.
Data-Driven decisions: Insights over information.
Merely having visibility is not enough. Today’s supply chain leaders require contextual insights—understanding not just what’s happening, but why it matters and how to act. By linking data insights to actionable outcomes, businesses can proactively address disruptions and delays. Many organizations today live within silos of information, making key decision making difficult by only having pieces of the information puzzle and not seeing the wholistic business picture.
Technology Integration: AI and Robotics in action.
Artificial Intelligence (AI) and robotics are revolutionizing supply chains. From automating routine tasks to predicting demand and optimizing inventory, these technologies reduce labor costs, enhance precision, and boost productivity. Machine learning models analyze vast datasets, providing predictive analytics for smarter decision-making. Utilizing a system that integrates ML and AI within the supply chain workflow can help consolidate workflows and reduce costs. By having these tools at the tip of an organization’s fingertips, a business’ supply chain can gain resilience to outside factors and become flexible to an everchanging supply chain ecosystem.
Sustainability: A business imperative.
As supply chains are significant contributors to carbon emissions, sustainability is no longer optional. Companies are adopting green practices, tracking carbon footprints, and incorporating sustainability metrics into their operations to align with environmental goals and regulatory requirements. Through different system optimizations, reducing carbon emissions through consolidation efforts or streamlining workflows can translate to dollars saved.
Real-time communication: The power of instant updates.
Real-time communication enables instant data sharing among stakeholders, enhancing agility. This responsiveness is crucial in today’s dynamic environment, allowing companies to address issues as they arise and maintain service levels during disruptions. Having constant communication with carriers, the warehousing and planning organizations within and outside of the organization will lead to overall efficiency and reduce costly fees while increasing customer satisfaction.
End-to-End visibility: Seeing the whole picture.
Comprehensive end-to-end visibility provides stakeholders with insights across all supply chain stages—from procurement to delivery. Unified platforms, such as ERP systems, help eliminate data silos, fostering a holistic view that enhances control and coordination. Allowing decision makers to view all pieces of the puzzle that impact the supply chain in a more effective manner helps identify key areas of focus to address within the company. This increases output while reducing bottlenecking within warehousing as well as planning operations.
Collaborative partnerships: Strength in unity.
Strong relationships with trading partners are essential. Collaboration fosters trust, improves information flow, and aligns objectives, ultimately leading to better outcomes for all parties involved. Having strong partnerships to fulfill requirements is easy to maintain and establish through an overall system in which carrier ranking and performance is maintained. Besides carrier performance, having a overall system in which automation and visibility is provided at ease to an organization positively impacts customer relationships through consistency and flexibility.
Change Management: Facilitating Digital Transformation.
Adopting advanced supply chain technologies requires effective change management strategies. Ensuring stakeholder buy-in and providing training are crucial for the successful implementation of digital tools and processes. Businesses which adopt an effective change management strategy will be better prepared for disruptions as they hit the supply chain. Being adequately prepared through a strategy and adjusting to the marketplace with a flexible system allows users and a change controller to make workflow adjustments in real time to mitigate disruptions to a supply chain as best as possible.
Key takeaway: A holistic, technology-driven future.
The supply chain of the future will be characterized by holistic integration, advanced technologies, and a strong focus on sustainability. Businesses that embrace these changes and foster collaboration across their networks will be better positioned to thrive in an increasingly complex and dynamic market.
One way to embrace holistic supply chain integration is by utilizing Advanced Shipping and Receiving (ASR) functionality between SAP Transportation Management (TM) and SAP Extended Warehouse Management (EWM). The ASR process is based on the Transportation Management freight order (shipment) and doesn’t use the Extended Warehouse Management transportation unit (TU) or the EWM vehicle. You can use consignment orders to group deliveries for inbound and outbound operations and EWM sends frequent and detailed updates to TM for things like delivery quantity changes or handling unit information. Having communication between the left hand of TM alongside the right hand of EWM allows business visibility and synergized workflow. Being able to get real time updates in the warehouse to see planning operations and for the planners to be able to see status of an order that is being picked, packed and stage can help operations to adjust to any last-minute changes easier.
Having a wholistic supply chain system that allows for dynamic changes to adjust to supply chain challenges in real time allows businesses to elevate their processes and become resilient to market disruptions. At Westernacher, we’ve been helping businesses implement these solutions for over 55 years, leveraging our deep expertise in SAP digital supply chain solutions.
If you’re ready to streamline your operations and reduce supply chain pain points, reach out to Westernacher. We’d love to show you how seamless ASR integration between TM and EWM can elevate your supply chain to the next level.
