Challenges - Shippers - Operational Network Optimization

Supply Chain Event Management

Decisions are based on incomplete, partial information. Inability to efficiently respond to events. Loads are not optimized for profitability. Deliveries lack integration with customer facility requirements and production needs.

Every action has a reaction. Linkages between process partners grow together, digitalization and logistics 4.0 link all partners in the value chain, and the buffers between different concerns quickly vanish.

On one side of the coin, this interlinked value chain from raw material to the final customer is the most efficient means of value creation. On the other side, this also means that the value chain is more vulnerable than ever. Any small deviation from original plans cannot be ignored, as it can dramatically impact the whole value chain at later stages. Companies need to set up strategies to handle these deviations, but doing so is typically a complicated task, one that hinges on a holistic view of how each potentiality across the value chain impacts multiple partners and scenarios.

Evaluating the best possible answer on each event in a short period of time is a task for a system that knows all potential scenarios as well as the impact on cost and customer delivery promise. This system needs to be highly integrated into planning processes and have access to stock, production plan, and transport provider information.