Supply Chain Optimization: Business Scenarios and Architecture

The pandemic has put the focus on supply chains, with organizations recognizing dynamic supply assurance as a critical business capability. Chief supply chain officers (CSCOs) and other executives are seeking to optimize their supply chains by infusing AI, modernizing technology, and achieving sustainability goals.

Over the next decade, CSCOs will need to address key industry challenges. Supply chain disruptions due to climate issues; regional conflicts such as Ukraine and the Middle East; desire for convenience and personalization; awareness of the impact of consumption on the environment; Meets delivery expectations. Fears of trade disruptions and cost fluctuations. All of these challenges can be addressed through more connected, agile and sustainable supply chains.

Organizations that proactively address these industry challenges will see several common results related to inventory, including a 4-8% improvement in lost sales due to inventory outage, increased inventory turnover, improved product risk management, perishability and obsolescence, and improved management. . Reduce lead times (a key indicator of overstock) and days on hand. There can also be financial benefits, including a 10% reduction in solution costs, lower holding costs, and improved gross margin return on investment. Finally, you’ll also see the benefits your customers face, including reduced return rates, the ability to manage unusual supply chain disruption events, including weather or natural disasters, and increased overall customer satisfaction.

To help organizations address these industry challenges, the IBM and Red Hat teams developed this white paper and supporting assets through the IBM Academy of Technology Industry Affiliate Initiative.

Download the white paper to learn more.

This white paper provides summaries, business challenges, and overall solutions based on specific business scenarios. For each business scenario, we discuss the business challenges, business value, and business outcomes, then provide actionable steps for automation and modernization that organizations can take to drive innovation and transition to a digital supply chain. Actionable steps will be developed through the lens of use cases on how key risks can be converted into opportunities.

Specific business scenarios covered in this white paper are demand risk, loss and waste management, product timeliness, perfect ordering, last mile delivery, sustainable supply chain, supply chain returns, and disaster preparedness. For each business scenario, we present the business scenario, solution overview, and architecture.

Read the Supply Chain Optimization white paper