Companies' IT departments are under pressure. Colleagues from sales and marketing, from purchasing and production and from logistics and supply chain are calling on them from their need for digitisation. But many IT departments still have their hands full maintaining and managing existing systems. The ICT & Logistics trade fair on 5, 6 and 7 November will show several ways out of this dilemma.
For IT managers, this is a great time. After all, everyone is talking about digitisation. Digitalisation of processes, of companies and even of entire supply chains. Companies are exploring new technologies, from the internet of things and blockchains to artificial intelligence. The biggest common denominator in all this is IT. In which IT is no longer a necessary evil, but a weapon in competition. What more could an IT manager want?
Unimpeded data flows
The key feature of digitalisation is an unimpeded exchange of data. In a digital supply chain, data flows from department to department and company to company, to wherever that data is needed. The lack of data should no longer be a reason for disruptions in operations, delays in processes or substandard decisions.
To what extent is there actually a fully digitised business at the moment? Or of a digital supply chain? Indeed, many companies have nice systems that function well and are integrated with each other. Think ERP systems, warehouse management systems (WMS) and transport management systems (TMS). Nothing more to do.
But within many companies - and certainly within supply chains - many points still exist where data flows stagnate, get stuck or simply stop. These are the points where data transfer - from department to department or company to company - leaves a lot to be desired. Perhaps they share data, but do so too late or the data set is too limited. These are the blind spots in the digital supply chain that require attention.
New standards
Most blind spots exist at the interface between two or more organisations. For example, a shipper who has outsourced its transport may be able to log on to a screen to check the status of a transport order. But if his regular carrier engages a charter, that screen often remains blank.
Another issue is that the number of supply chain partners is growing and also changing more and more frequently. Today's supplier may be exchanged for another tomorrow. The regular all-round carrier who provides transport today may have to give way tomorrow to a combination of cheaper, faster and more reliable specialists. IT managers who take no action may fill their days realising links with chain partners.
New standards offer solutions. Standards such as iSHARE and the OpenTripModel make integration of chain partners easier. They avoid having to reinvent the wheel with each new integration. They remove the barriers that make unhindered data flow impossible.
Machine learning
Once the blind spots are filled in, the next problem arises. How do we manage all the data coming from sensors, machines and systems that now flows freely through the chain? How can we translate all that data into information needed to make the right decisions? This is where artificial intelligence offers a solution.
With smart algorithms and new machine learning capabilities, we can automatically analyse data, recognise patterns and detect anomalies. As a result, problems become visible, often before they actually occur. Planners and process managers only need to look at those problems. The rest of the operation goes on as usual.
An additional opportunity arises from the use of external data. Think of data on weather and traffic that we can use to predict arrival times of shipments. Or think of market data or analyses of customer behaviour on social media that we can use to predict demand for products. The market offers more and more tools that provide solutions for this.
Free up time
The call for digitalisation offers IT managers opportunities to increase their value to their organisations. They can play a proactive role by systematically identifying and filling in blind spots in the digital supply chain. They can help their colleagues from logistics, manufacturing, procurement, supply chain and other department with intelligent tools to analyse and interpret the freely flowing data.
The big problem is the lack of time and capacity. IT is one of the sectors where the lack of skilled workers is most acute. The IT staff that companies did manage to find and retain spend much of their time managing and maintaining existing systems. Time for new initiatives is often lacking.
IT managers can free up time. How? By opting for smart cloud solutions whenever possible. Cloud solutions also exist in logistics today that have already proven their value in practice. At ICT & Logistics, you can find them.
ICT & Logistics
ICT & Logistiek will take place on 5, 6 and 7 November at the Jaarbeurs in Utrecht, simultaneously with Logistica trade fair. Visit the ICT & Logistiek website for more information or register here directly.
