Executive Briefings

Break the Chain: Optimize With Smart Supply Network 3.0

Analyst Insight: Supply chain problems result from the uncertainty, time delay and amplification of variability based on demand changes from one function to another and from one organization to another. The parts of the chain don't work together! They often work against one another. The supply chain is a dysfunctional system that increases the cost of all participants in the system. Today's optimization and network technology provides the capability transform to a Smart Supply Network 3.0. – Rich Sherman, author and founder at Gold & Domas Research

Break the Chain: Optimize With Smart Supply Network 3.0

Fueled by pundit hype, the Internet of Things (IoT) is merging with the Internet of People (IoP) resulting in an Internet of Everything that I call Web 3.0 or Connected Commerce. Everything and everyone is always on and always connected. We’ve all seen supply chain network modeling and optimization tools. Think of the model being populated with real-time data collected by sensors, monitors, AutoID, people, systems, etc., that comprise Web 3.0 and powered by cognitive intelligence systems like IBM’s Watson while deployed on demand in the cloud.

With predictive and prescriptive analytics, the supply network can be synchronized and optimized to respond to variability when and where it occurs. Inventory, production and procurement would be planned and balanced throughout the day. Web 3.0 is the transformation platform enabling the emergence of the Smart Supply Network 3.0 (SSN 3.0).

Web 3.0’s connected commerce is a system. It is omnidirectional and omnichannel. Organizations participate in a dynamic network of other organizations to satisfy demand at a consumption point. The organizations in the network are not “links”, they are nodes. They work together in conjunction with other nodes to distribute material and information across the network to satisfy demand at consumption nodes. Connectivity is provided physically by transportation lanes and carriers. Information is provided by communications lanes (Web 3.0) and telecommunication carriers, largely in the cloud. Break the chain, connected commerce requires a Smart Supply Network 3.0.

What does it look like? Simply stated, SSN 3.0 provides end-to-end predictive and prescriptive analytics, decision support, and transparency (transcending the current notion of visibility) to synchronize the flow of material, services and information to respond to demand. More accurate timely data, shared simultaneously in real time, enables the networked organizations to optimize resources and physical flow to reduce time, inefficiency and cost while increasing service and capacity utilization to serve connected consumers/customers across industries.

Where can I buy one? SSN 3.0 is not a product. It’s a supply network physical and information architecture that enables the assembly and configuration of existing and emerging technologies to power it. The origin of the IoT concept was introduced in 1999 at Procter & Gamble (P&G). After 15 years, the industry is starting to consider its impact.

On the other hand, at a recent conference, a P&G supply chain executive presented how P&G was benefiting from supply chain analytics fueled by data being collected across their supply network in near real time. The analytics enabled operations of some high-volume, fast-moving products to make production and inventory adjustments to respond to demand changes twice daily! They have implemented a SSN 3.0. Can you catch up?

The Outlook

In 2015, existing and emerging technology providers will offer more advance planning and optimization tools based on the availability, lower cost and capture of more accurate and timely data. RFID and other sensor/monitor automatic identification devices will be adopted. The market will be driven by government regulatory compliance for tracking and traceability as well as cargo security monitoring and product counterfeiting detection.

Fueled by pundit hype, the Internet of Things (IoT) is merging with the Internet of People (IoP) resulting in an Internet of Everything that I call Web 3.0 or Connected Commerce. Everything and everyone is always on and always connected. We’ve all seen supply chain network modeling and optimization tools. Think of the model being populated with real-time data collected by sensors, monitors, AutoID, people, systems, etc., that comprise Web 3.0 and powered by cognitive intelligence systems like IBM’s Watson while deployed on demand in the cloud.

With predictive and prescriptive analytics, the supply network can be synchronized and optimized to respond to variability when and where it occurs. Inventory, production and procurement would be planned and balanced throughout the day. Web 3.0 is the transformation platform enabling the emergence of the Smart Supply Network 3.0 (SSN 3.0).

Web 3.0’s connected commerce is a system. It is omnidirectional and omnichannel. Organizations participate in a dynamic network of other organizations to satisfy demand at a consumption point. The organizations in the network are not “links”, they are nodes. They work together in conjunction with other nodes to distribute material and information across the network to satisfy demand at consumption nodes. Connectivity is provided physically by transportation lanes and carriers. Information is provided by communications lanes (Web 3.0) and telecommunication carriers, largely in the cloud. Break the chain, connected commerce requires a Smart Supply Network 3.0.

What does it look like? Simply stated, SSN 3.0 provides end-to-end predictive and prescriptive analytics, decision support, and transparency (transcending the current notion of visibility) to synchronize the flow of material, services and information to respond to demand. More accurate timely data, shared simultaneously in real time, enables the networked organizations to optimize resources and physical flow to reduce time, inefficiency and cost while increasing service and capacity utilization to serve connected consumers/customers across industries.

Where can I buy one? SSN 3.0 is not a product. It’s a supply network physical and information architecture that enables the assembly and configuration of existing and emerging technologies to power it. The origin of the IoT concept was introduced in 1999 at Procter & Gamble (P&G). After 15 years, the industry is starting to consider its impact.

On the other hand, at a recent conference, a P&G supply chain executive presented how P&G was benefiting from supply chain analytics fueled by data being collected across their supply network in near real time. The analytics enabled operations of some high-volume, fast-moving products to make production and inventory adjustments to respond to demand changes twice daily! They have implemented a SSN 3.0. Can you catch up?

The Outlook

In 2015, existing and emerging technology providers will offer more advance planning and optimization tools based on the availability, lower cost and capture of more accurate and timely data. RFID and other sensor/monitor automatic identification devices will be adopted. The market will be driven by government regulatory compliance for tracking and traceability as well as cargo security monitoring and product counterfeiting detection.

Break the Chain: Optimize With Smart Supply Network 3.0