Emre Akbag, managing director of Siemens Digital Logistics, details how managers can anticipate supply chain changes rather than always being in reactive mode.

Visibility into one’s supply chain along with so-called “predictive power” bring the resilience needed when disruption threatens, Akbag says.

Visibility has never been more important, given the number of disruptions today. Predictive solutions play a major role, Akbag says, because visibility usually appears just before it's too late, if not when the damage has already occurred. However, if one can “predictably prepare,” one has options.

“For instance, if you know that the part is not coming in time and you've planned for the alternative, you know what to do in that moment. Maybe you've even aligned the situation with your Plan B supplier. Maybe you're able to change your production schedule. So covering these two areas, visibility and prediction, is key to responding to the increased number of disruptions nowadays.”

Akbag says the supply chain is basically about collection of data and collaboration with other players. For instance, relying solely on information from a supplier can be a mistake. Wouldn’t it be better to also be in touch with the transportation company that is to deliver the part from the supplier? “You need to be in control of your network. You need to be able to get information from multiple perspectives and multiple network players and bring it to the right people. That's the core of how to manage the prediction.”

Clearly, predictive ETA technology also plays a huge role in supply chain efficiency. So does the use of digital twins. Akbag disagrees with the notion that product design and production simulation aren’t core areas of supply chain. He says the technology allows you to “create” disruption and see in advance how to avoid it.