In recent years, global supply chains have demonstrated just how fragile they can be, as even minor incidents can trigger massive disruptions. The blockage of the Suez Canal is a prominent example, illustrating how interconnected the world of logistics has become. With uncertainty escalating—exacerbated by geopolitical tensions and regulatory changes—supply chain managers are feeling the pressure more than ever. Enhanced visibility into upstream supply chains is becoming essential for businesses, enabling them to respond more effectively to unexpected challenges.
At the recent Sustainable Summit in Amsterdam, various technology providers unveiled their solutions for improving upstream supply chain management. Among these was Tesisquare, an Italian software company specialising in supply chain visibility. Tesisquare’s latest platform version integrates multiple regulations, including the Carbon Border Adjustment Mechanism and the Corporate Sustainability Due Diligence Directive, thus offering users a comprehensive view of their supply chain operations. The firm’s ability to aggregate supplier data across a variety of industries allows clients to trace raw materials back to their source, down to specific serial numbers. This level of detail is increasingly necessary in an era where transparency is paramount, especially regarding sustainability goals.
Xometry, another key player in the field, offers a procurement platform that focuses on quick sourcing rather than sustainability per se. Its services enable companies to find suitable suppliers for industrial components, drastically reducing lead time to as little as 24 to 48 hours. The platform supports over 70,000 clients globally across sectors like medical, aerospace, and defence. Users can upload designs to receive instant quotes, facilitating a seamless route from prototype to production. This rapid sourcing capability becomes crucial when companies need to pivot quickly amidst fluctuating market demands.
The conversation around spare parts procurement also introduced 3D printing as a viable solution for enhancing efficiency. As Pieter Ruijssenaars, founder of the Dutch firm Dimanex, pointed out, traditional supply chain models for spare parts can often be inefficient. Companies frequently keep vast inventories that may not be optimally utilised, resulting in both financial waste and delayed delivery times. By employing 3D printing technology, Dimanex helps organisations identify which parts can be produced on demand, thus significantly cutting down on overhead costs and reducing the carbon footprint associated with air-freighting components.
Intriguingly, Dimanex has integrated an AI-driven analytical platform to assess the entire spare parts portfolio of its clients, determining which components are suitable for on-demand production. This innovation involves building a digital library of part designs, allowing manufacturers to print components locally, often within the same day a request is made. While the initial cost per unit for 3D printed parts tends to be higher, the substantial reduction in overall inventory and transportation costs can lead to remarkable savings, potentially reaching hundreds of thousands of euros.
Logistics and transportation management emerged as crucial components in creating efficient supply chains, particularly in light of environmental concerns. Dominic Regan of Oracle highlighted the importance of data in mitigating the emissions associated with transport. By employing advanced software to analyse various transport options, businesses can examine cost implications and carbon emissions for each potential delivery method. This functionality enables companies to make more informed choices, such as opting for electric transport or adjusting delivery windows to enhance sustainability efforts.
Despite the vast technological advancements available to improve supply chain efficiency, challenges remain—not least in achieving internal alignment across different departments. As Ruijssenaars aptly noted, while technology is ready and available, effective implementation often falters due to human behaviour and cross-departmental hurdles. Maria Villablanca, who moderated the discussions at the Sustainable Summit, encapsulated this sentiment by urging the supply chain community to recognise its responsibility in combating climate change and stressing the necessity for transformative approaches to supply chain management.
In conclusion, the tools showcased at the summit represent just a fraction of what is possible in improving upstream supply chains. From integrated platforms that enhance visibility to innovative production methods like 3D printing, businesses now have more means than ever to mitigate disruptions. However, true progress hinges on the collective willingness to embrace change and take responsibility for sustainability in the supply chain landscape.
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Source: Noah Wire Services
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