“Where there is production and consumption, there is supply chain”- Brian Laung Aoaeh, REFASHIOND

PROLOGUE

Supply chain management is the handling of the entire production flow of a good or service — starting from the raw components all the way to delivering the final product to the consumer.  Today, supply chains are being disrupted by an onslaught of changes. Market expectations are racing higher and information complexity is exploding. Traditional supply chains suffer from lag and silo-ing of information. “Dynamic” and “Predictive” is no longer an option, it is an imperative. Supply chain leaders are being tasked to address the disruptors and to achieve performance levels well beyond past expectations.

The impact of the Covid crisis has been significant and it demonstrates the acute need for a connected and agile supply chain. It has caused major disruptions in supply chains that has led to higher prices for consumers. As the COVID-19 pandemic has shown, companies need the ability to quickly identify shortages, demand spikes, and supplier disruptions to win and keep customers as conditions change.

Nearly two years into the pandemic, supply chain disruptions still dominate headlines, as do large funding rounds by tech companies aiming to solve the problem. 2021 was a banner year for venture-backed supply chain management companies, which saw $11.3 billion in funding, according to Crunchbase numbers. That represents almost a twofold increase from 2020 and easily beats the previous all-time high in 2019 which saw $9.1 billion go to startups that look to keep the supply chain moving. The numbers show not just the effects of the pandemic that shocked every aspect of the supply chain, but something more. They represent a building acceptance of tech in an industry known to run on pen, paper, and spreadsheets.

OVERVIEW

Supply chain management is a balancing act that aims to achieve the best combination of elements to support the overall business strategy and meet customer expectations. The key to unlocking efficiency in the supply chain is leveraging technology appropriately to create solutions that remove these barriers by bringing carriers, shippers, and warehouses together so we can move freight in the most efficient, transparent, and automated way. The goal is to find an equilibrium and avoid costly vicious cycles.

REFASHIOND Ventures, an emerging venture capital fund founded by Lisa Morales-Hellebo and Brian Laung Aoaeh, believes that innovation in supply chain is the foundation and economic multiplier for all other sustainable innovation. Their core thesis is based on the fact that Global supply chain networks are entering a golden age of innovation, driven by unfolding economic forces, unassailable technological advances, and social trends built on increasing demand, and consumption of goods and services by people all over the world who are also becoming more aware of the impact consumerism has on climate change and the future of our planet. They believe that Software-enabled technologies will lead to the rearrangement of supply chains in every industry around the world. This process would cause the reorganization of industrial operations, the displacement of incumbent market leaders, and the disruption of formerly stable markets.

OBJECTIVE

The objective of this article is to define a Connected Supply Chain – faster, more agile, and dynamic – not only leveraging data and predictive analytics, but also manage upstream, midstream, and downstream demands to balance out needs and provide for a theme for custom manufactory – the ability the make mass customized products, and the coordinated management of processes in the next industrial revolution, Industry and Services 5.0.

We will start with how in the third industrial revolution Just-in-time and Kanban were the basis for automation in manufacturing. These matured into managing a Balanced Scorecard in the 80s and 90s, to a more robust Zero-Based Supply chain as digital and robotic processes took hold of manufacturing practices in Industry 4.0.  We will then delve into our blueprint of a Balanced Supply Chain utilizing Numorpho Cybernetic Systems (NUMO) Digital Twine reference architecture based on balancing Demand Planning, Procurement, and Supply Operations on one side, and Warehouse Management, Distribution Mobility and Fulfillment on the other.

We will end with how blockchain will be used to manage smart contracts and would facilitate the harmonization of the value chain by reducing friction between transfers of both physical and digital entities. We will summarize this by presenting what organizations like mHUB and MxD are doing in this field, and what the Covid Pandemic, unrest in Europe and the rising oil prices are doing to change the value proposition for supply chain.

HISTORICAL BASIS

The Third Industrial revolution was facilitated by just-in-time (JIT) and Kanban production methods in the late 20th century. It allowed for the production of individual items as they were ordered, which led to increased automation in manufacturing. JIT relies on a continuous flow of materials and components to the production line, while Kanban uses a signal (usually a card or a light) to indicate when more components are needed. This is how Lean Manufacturing and the concept of Supply chain emerged to optimize production.

In the ‘80s and ‘90s large manufacturing companies like Boeing, Ford, and GM, driven by analysis done by consulting companies like McKinsey & Co. started using the Balanced Scorecard to address supply chain needs. At each tier of the supply chain, the balanced scorecard addressed the four metrics: Financial, Customer, Internal Process and Learning and Growth. Firms took repeated measurements in each of these categories and then alternate through a system whereby they focused on weak to improve performance.

The Fourth Industrial Revolution is characterized by the increased use of cyber physical systems, or systems where physical and digital systems are integrated and interact with each other. Zero-basing works by scrutinizing end-to end supply-chain spending to reset a company’s cost baseline, rather than drawing from past data. Companies can identify substantial untapped value by applying it to every part of the supply chain. At the same time, companies are under more pressure than ever to manage costs and address critical pinch points in supply chains without tying up capital. Enter the “zero-based” supply chain — a holistic way to drive profitability that emphasizes the future over the past.

Zero-Based Supply Chain identifies the “should cost” and cost reduction opportunities across three levers—price, performance, and value engineering—while optimizing product and service complexity. By radically shifting cost curves and boosting performance across the supply chain, businesses can create new value to fuel sustained growth in the Never Normal world.

THE CONNECTED SUPPLY CHAIN

Martin Christopher defines supply chain as creating value-adding networks – a network of connected and interdependent organizations mutually and cooperatively working together to control, manage and improve the flow of materials and information from suppliers to end users. The six key elements of a supply chain – cost, capacity, inventory, lead time, customer service level, and product portfolio complexity—are inextricably intertwined.  As such, they should be managed as pieces of a whole. In order to define what a Connected Supply Chain is, it is important to understand the three fundamental tenets of supply chain management:

1. The supply chain should be viewed as a single entity with the end goal of meeting customer demand.
2. The supply chain should be able to react quickly to changes in the marketplace.
3. The supply chain should be able to efficiently utilize resources to meet customer demand.

A Connected Supply Chain is able to meet these three tenets by leveraging the latest technologies to create a more agile and responsive supply chain. By using data and predictive analytics, supply chain leaders can make better decisions that will help them react quickly to changes in the marketplace. It would have been better able to respond to the Covid crisis. Additionally, the use of technology would have helped to improve communication and collaboration within the supply chain. This will help to ensure that everyone is aware of disruptions and can work together to mitigate the impact.

With costs of goods sold (COGS) contributing to 40-70% of a business’ cost base, optimizing supply-chain costs has always been a major focus for companies. By applying a zero-based mindset across the supply chain, organizations achieve the visibility needed to make deployment and cost containment decisions, identify opportunities for immediate relief and risk balancing, and reallocate resources to invest in future innovation and growth. With this approach, goals are based on market realities — not arbitrary percentage reductions on historical data. Companies build a cost-conscious, yet innovative, culture that is supported by data transparency and advanced analytics to ensure accountability and continuous renewal across departments. And by instilling organizational incentives, companies can promote information sharing and collaboration best practices across the organization.

OUR PERSPECTIVE

Demand Planning is the creation of accurate forecasts for future sales. Forecasting is the process of predicting future events. It is an important part of supply chain management because it allows businesses to plan for future needs. Procurement is the process of acquiring goods and services. It is a key part of supply chain management because it is responsible for getting the right products to the right place at the right time. Supply Operations is the process of getting products to the right place at the right time. It is responsible for ensuring that the correct quantities of products are available at all times.

Warehouse Management is the process of organizing and managing the warehouse. This includes the selection of the correct storage method, the allocation of space, and the selection of the correct equipment. Distribution Mobilization is the process of shipping. This includes the selection of the correct transportation method, the development of delivery schedules, and the selection of the correct delivery partners. Fulfillment is the process of getting products to the customer. This includes the selection of the correct fulfillment method, the development of fulfillment schedules, and the selection of the correct fulfillment partners.

Supply chain is a fine balancing act between Demand Planning, Procurement, and Supply Operations on one side, and Warehouse Management, Distribution Mobility and Fulfillment on the other. These are key aspects of Supply Chain Management that need to be addressed to make adaptable and resilient.

In Use Case 7, we present a blueprint for the articulation of a balanced Supply Chain based on our Digital Twine reference architecture for Industry 4.0 to include blockchain, process automation, predictive analytics and just-in-time management of goods and services for a fully flexible chain to manage processes and logistics end-to-end.

As the heart of the supply chain, logistics is also transforming an industry with 3PL warehouses at the epicenter. Whether it’s through process automation, customer-centric fulfillment strategies, change management, or re-evaluated fulfillment networks, 3PLs are transforming the way consumers receive goods. We have used this approach in multiple implementations ranging from managing and logistics of parts and services for vehicles and construction equipment, enabling pick-pack-ship 3PL warehousing schemes for small scale distribution to customers after production runs, and building a unique Uber-esq model for procuring food containers, and plan to elevate it to the new by coordinating it with the other systems and services as shown in the above dynamic diagram.

SUPPLY CHAIN RESILIENCE

Supply chain resilience refers to the ability of a given supply chain to prepare for and adapt to unexpected events; to quickly adjust to sudden disruptive changes that negatively affect supply chain performance; to continue functioning during a disruption (sometimes referred to as “robustness”); and to recover quickly to its pre-disruption state or a more desirable state.

BLOCKCHAIN IN THE SUPPLY CHAIN

The supply chain of tomorrow needs to keep track of product authenticity, tracking, invoicing, border-transfers, taxing, delivery, and payment. Supply chain networks can be limited by one-up/one-down visibility. By implementing blockchain into the supply chain, businesses can reduce the risk of product counterfeiting, increase the speed of delivery, and improve payment accuracy. Through distributed ledger technology that provides a shared, single version of the truth, supply chain solutions streamline onboarding and give permissioned participants greater visibility across all supply chain activities

A blockchain enabled platform will allow businesses to track the shipment of goods from start to finish, ensuring that all aspects of the supply chain are running smoothly. Using smart contracts that automatically trigger when pre-defined business conditions are met gives near real-time visibility into operations, and the ability to take action earlier should there be an exception.

• In one of our implementations, we created a blueprint using blockchain for managing the connected operations for a paper manufacturer starting with lumber, pulping, shipping, contracting, transit tracking and other needs as the raw goods moved from one business unit to another and finally to OEMs to be packaged into products like paper towels, diapers etc.
• In another use case, to help increase food safety and freshness, utilizing smart sensors embedded within the products especially perishable goods and chaining it with a distributed ledger will enable the system to track the food from farm to table, ensuring that the food is safe and that the correct payments are made. It will also enable the proper disposition of the goods before expiration (to soup kitchens for example) so that issues of food waste are mitigated.

As shown in our blueprint for Use Case 7, the red line that traverses diagonally in the indicates that distributed ledger is the key system that would synchronize all other operations.

Thus, implementing blockchain into the supply chain, businesses can improve the accuracy and efficiency of their operations. Blockchain is a secure and transparent technology that can be used to keep track of products, payments, and delivery thus resolving issues and building trust and stronger relationships. Blockchain for supply chain solutions help supply chain leaders use data to handle the disruptions of today and build resiliency for the future.

THE PROS AND CONS OF ELECTRIFICATION

Batteries, they do not make electricity – they store electricity produced elsewhere, primarily by coal, uranium, natural gas-powered plants, or diesel-fueled generators.  So, to say an EV is a zero-emission vehicle is not at all valid. Also, since forty percent of the electricity generated in the U.S. is from coal-fired plants, it follows that forty percent of the EVs on the road are coal-powered, do you see?”

Einstein’s formula, E=mc2, tells us it takes the same amount of energy to move a five-thousand-pound gasoline-driven automobile a mile as it does an electric one. The only question again is what produces the power? To reiterate, it does not come from the battery; the battery is only the storage device, like a gas tank in a car.

There are two orders of batteries, rechargeable, and single-use. The most common single-use batteries are A, AA, AAA, C, D. 9V, and lantern types. Those dry-cell species use zinc, manganese, lithium, silver oxide, or zinc and carbon to store electricity chemically. Please note they all contain toxic, heavy metals.

Rechargeable batteries only differ in their internal materials, usually lithium-ion, nickel-metal oxide, and nickel-cadmium. The United States uses three billion of these two battery types a year, and most are not recycled; they end up in landfills. California is the only state which requires all batteries be recycled. If you throw your small, used batteries in the trash, here is what happens to them.

All batteries are self-discharging.  That means even when not in use, they leak tiny amounts of energy. You have likely ruined a flashlight or two from an old, ruptured battery. When a battery runs down and can no longer power a toy or light, you think of it as dead; well, it is not. It continues to leak small amounts of electricity. As the chemicals inside it run out, pressure builds inside the battery’s metal casing, and eventually, it cracks. The metals left inside then ooze out. The ooze in your ruined flashlight is toxic, and so is the ooze that will inevitably leak from every battery in a landfill. All batteries eventually rupture; it just takes rechargeable batteries longer to end up in the landfill.

In addition to dry cell batteries, there are also wet cell ones used in automobiles, boats, and motorcycles. The good thing about those is, ninety percent of them are recycled. Unfortunately, we do not yet know how to recycle single-use ones properly. But that is not half of it.  For those of you excited about electric cars and a green revolution, I want you to take a closer look at batteries and also windmills and solar panels. These three technologies share what we call environmentally destructive production costs.

A typical EV battery weighs one thousand pounds, about the size of a travel trunk.  It contains twenty-five pounds of lithium, sixty pounds of nickel, 44 pounds of manganese, 30 pounds cobalt, 200 pounds of copper, and 400 pounds of aluminum, steel, and plastic. Inside are over 6,000 individual lithium-ion cells.

It should concern you that all those toxic components come from mining. For instance, to manufacture each EV auto battery, you must process 25,000 pounds of brine for the lithium, 30,000 pounds of ore for the cobalt, 5,000 pounds of ore for the nickel, and 25,000 pounds of ore for copper. All told, you dig up 500,000 pounds of the earth’s crust for just – one – battery.”

Sixty-eight percent of the world’s cobalt, a significant part of a battery, comes from the Congo. Their mines have no pollution controls, and they employ children who die from handling this toxic material. Should we factor in these diseased kids as part of the cost of driving an electric car?”

I’d like to leave you with these thoughts. California is building the largest battery in the world near San Francisco, and they intend to power it from solar panels and windmills. They claim this is the ultimate in being ‘green,’ but it is not.  This construction project is creating an environmental disaster.  Let me tell you why.

The main problem with solar arrays is the chemicals needed to process silicate into the silicon used in the panels. To make pure enough silicon requires processing it with hydrochloric acid, sulfuric acid, nitric acid, hydrogen fluoride, trichloroethane, and acetone. In addition, they also need gallium, arsenide, copper-indium-gallium-diselenide, and cadmium-telluride, which also are highly toxic. Silicon dust is a hazard to the workers, and the panels cannot be recycled.

Windmills are the ultimate in embedded costs and environmental destruction. Each weigh 1688 tons (the equivalent of 23 houses) and contains 1300 tons of concrete, 295 tons of steel, 48 tons of iron, 24 tons of fiberglass, and the hard to extract rare earths neodymium, praseodymium, and dysprosium. Each blade weighs 81,000 pounds and will last 15 to 20 years, at which time it must be replaced. We cannot recycle used blades.

There may be a place for these technologies, but you must look beyond the myth of zero emissions.

“Going Green” may sound like the Utopian ideal but when you look at the hidden and embedded costs realistically with an open mind, you can see that Going Green is more destructive to the Earth’s environment than meets the eye, for sure.

JB Straubel, the ex CTO of Tesla and an eminent subject matter expert in all things batteries just founded Redwood Materials to plan ahead to address the problems and opportunities coming when millions of EV’s batteries need an end of life solution and when the electronics piled up in your drawers at home find a new life.

SUMMARY

The supply chain is the network of all businesses, resources, activities, and technology involved in the creation and sale of a product, from the initial raw materials to delivery of the assembled product to the customer. Manufacturing’s next advances on this frontier will include predictive analytics. Systems will warn manufacturers of potential disruptions in a supply chain before they happen and also will forecast which materials and components customers will want— when and why.

Balancing for supply chain would also mean estimating off-shore vs local, prototype vs production at scale, intellectual property theft, shipping costs variability and speed to market considerations. Logistics has always been an essential ingredient of supply chain. It is the process that determines how goods and materials are moved to and from suppliers and customers. Today, with the growth of ecommerce, the role of logistics is even more important. By optimizing the movement of goods, businesses can improve their fulfillment times and reduce shipping costs. This requires the coordination of a number of different processes, including transportation, warehousing, and order processing. By streamlining these processes, businesses can improve their overall supply chain performance.

Supply-chain operations make and deliver tangible aspects of our lives and create the fundamental material pathways in a functioning society. Unappreciated in normal times, they rush to the forefront in times of crisis, such as the great wars and most recently, COVID-19. In summary, we will highlight some of the key characteristics for balanced supply chain operations by mentioning what we and organizations we are members of are doing.

Ramping up for production offers a whole new set of challenges. In a two-part constructive conversation, the curriculum @mHUB, the center for innovation and hard-tech prototyping, teaches how to approach and manage your production to scale (local of foreign), production costs and what to look for when working with supplier/manufacturer at larger volumes. The conversation also reviews quality control processes, standards, and how to anticipate failure points.

@MxD, the DoD funded center where manufacturers ideate on design for smart production, does two things to advance supply chain performance. First, it funds projects that optimize the supply chain, often incorporating sensors, software, and analytics. Second, it serves as a convener of organizations in the supply chain. Communication among suppliers and top-tier manufacturers often is lacking; a gulf exists between the digital haves and have-nots. Manufacturers large and small need guidance and a neutral forum to share best practices to bring along their supply chain. In a themed, newsletter appropriately titled “ChainMail”, MxD in conjunction with EY discusses current trends in supply chain and how technology companies are achieving unicorn status by attracting investments by creating unique ways to employ data and analytics to make sense of all the moving parts.

Omnichannel fulfillment may be one of the biggest buzzwords of 2021. Pre-pandemic, 3PL warehouses were focused on diversifying fulfillment for ecommerce—especially B2B providers looking to capitalize on the rise of online shoppers. This surge is expected to continue through 2022 with retail ecommerce revenue predicted to reach $502.5 billion. Omnichannel fulfillment is a strategy of having a unified approach to manage inventory and order processing from a variety of sales channels. In our basis for an endless aisle, as we detail our PaaS for an adaptive marketplace, we will coordinate with 3PL facilities to quantize and fulfill items beyond the current “aisle” to enable frictionless and speedy delivery of goods and service.

Off-shore vs Local is another fine balancing act that needs to be accounted for in supply chain considerations. Dual shore, near shore and reshore are new concepts that are changing its landscape, but the devil is in the details. “I want this business to make money and not steel” was the comment by a South Chicago Steel mill CEO in subscribing to the offshore bandwagon in the eary’90s. In a recent conference conducted at mHUB sponsored by 5^th 3rd Bank titled “Inside the Global Supply Chain” the conversations touched on the retiring workforce as we think of reshoring lost manufacturing capabilities, governmental policy changes that need to be implemented, and developing a curriculum for training in services from an education perspective that would help fill the dire need of skills gap – this is estimated to be around 58000 in the Chicagoland area alone.

The Covid pandemic, the invasion of Ukraine and the recent surge in oil prices has increased shipping cost more than 10x. All of these conditions and the implications are to trading with hostile nations – all need to be re-assessed for the entire value stream to figure out an optimal basis for supply chain. Now more than ever, North American OEMs are strengthening their supply chains by turning to domestic manufacturers ⁠— in fact, reshoring is expected to surge by 38% in 2022, the largest jump on record. Reshoring would mean more robotic production, and the effects of such automation to workforce capacity has to be understood with definite reduction in the numbers going forward. But as rightly put by Victor Hugo in Les Misérables, Progress is the Mode for Mankind – and cannot be stopped and bigger and better replacements will be discovered and made available to satiate the needs of the workforce – especially since it is a circular effect of consumers having more buying power. A new concept called Dual shore is where tools could be manufactured in the proximity of areas where raw materials and workforce was appropriate and then shipped to manufacturing facilities where the impact on logistics for production would then be minimized.

Effects of climate change, sustainability, and social purpose vs the Amazon way to make profit are also considerations to draw this fine balance in supply chain. Statistics show that albeit more than 60% of the consumers are pro-green, only 27% really put it in practice. So, there is a question of the effect on the bottom line – wherein customers mostly think with their head and not with their heart when it comes to their wallet – that needs to be addressed.

Advances in digital manufacturing have dramatically changed the U.S. supply chain over the last decade. While some manufacturers are still struggling with the first step (going paperless), GPS systems are enabling unprecedented visibility into logistics, and online retailers have raised everyone’s expectations on the precision and speed of on-demand delivery. It’s no longer acceptable to have no idea when a delivery will arrive. And manufacturers want to have as little inventory as possible on hand to reduce costly waste and support “just-in-time” production.

In the real estate business, there is an adage: It’s all about location, location, location – unless you are in Atlanta where it is Peachtree, Peachtree, Peachtree. Also, this: The past is history, the future is a mystery, but the present is a gift! For supply chain it is appropriately stated succinctly by Brian Laung Aoaeh:  The past ran on supply chains. The present runs on supply chains. The future will run on supply chains. The world is a supply chain™.

NITIN UCHIL Founder, CEO & Technical Evangelist
nitin.uchil@numorpho.com

Summary by perplexity.ai

The article presents a balanced supply chain concept that focuses on coordinating demand and supply aspects. It emphasizes the need for a holistic perspective in supply chain management, particularly for hardtech startups and in the context of Industry 4.0.Key points from the article include:

1. The supply chain is described as a balancing act between two main sides:
   • Demand Planning, Procurement, and Supply Operations
   • Warehouse Management, Distribution Mobility, and Fulfillment
2. The article discusses the historical evolution of supply chain management, from Just-in-Time (JIT) and Kanban methods in the Third Industrial Revolution to the current Fourth Industrial Revolution characterized by cyber-physical systems.
3. It introduces the concept of a “Connected Supply Chain” that leverages technologies like blockchain, process automation, and predictive analytics to create a flexible end-to-end management of processes and logistics.
4. The importance of adapting to market changes and disruptions, such as those caused by the COVID-19 pandemic, is highlighted.
5. The article proposes a “zero-based” supply chain approach, which focuses on future needs rather than past data, to drive profitability and manage costs effectively.
6. It emphasizes the need for supply chains to be viewed as a single entity, react quickly to market changes, and efficiently utilize resources.
7. The concept of “Dual shore” manufacturing is introduced, which aims to optimize production and logistics by manufacturing tools near raw materials and workforce, then shipping to production facilities.
8. The article touches on the impact of climate change, sustainability, and social purpose on supply chain decisions.
9. It discusses the role of technology in improving supply chain visibility, efficiency, and meeting customer expectations for precision and speed in delivery.

Overall, the whitepaper advocates for a balanced, technology-driven approach to supply chain management that can adapt to changing market conditions and meet the challenges of modern manufacturing and distribution.

20240627 – Supply Chain Basics for Hardtech startups – Karthik Chandramouli

Karthik Chandramouli is the Expert in Residence for Supply Chain at mHUB Chicago. He works with member companies to identify and solve supply chain challenges from the design phase through product launch. His expertise covers various aspects of supply chain management, including:

1. New Product Introduction
2. Strategic Sourcing
3. Sales & Operations Planning
4. Forecasting
5. Inventory Management
6. Lean Manufacturing / Logistics

Karthik’s role at mHUB involves supporting early-stage CleanTech, MedTech, and HardTech startups with their supply chain needs. He helps develop a network of strategic sourcing partners to support these startups’ unique requirements. While I can’t speak to the specific presentation you mentioned, it’s worth noting that Karthik has led supply chain basics classes at mHUB. These classes likely cover fundamental concepts of supply chain management, which could include topics such as planning, sourcing, manufacturing, selling, and support – elements that are crucial for hardtech startups. Karthik’s background includes diverse experience across consumer electronics and automotive industries, as well as product and business operations leadership roles in early-stage technology startups. This broad experience likely informs his approach to supply chain management for hardtech startups.

“Supply chains have rhythms – they have heart beats” …. was Karthik Chandramouli’s theme for this presentation of supply chain basis for hardtech startups at mHUB on June 27, 2024. It was part of his talk that included Plan, Source, Make, Sell and Support as the progression in making a product and where supply chain needs a focused approach to optimize end-to-end processes. Let’s use this as the basis for our conversation on supply chain.

Plan -> Source -> Make -> Sell -> Support

The elements of Plan, Source, Make, Sell, and Support represent a comprehensive approach to product development and supply chain management. Let’s examine each element and how they contribute to optimizing end-to-end processes:

1. Plan:
   Planning is the foundation of an effective supply chain strategy. It involves forecasting demand, capacity planning, and resource allocation. In this phase, companies analyze market trends, historical data, and potential disruptions to create a robust plan that aligns with business objectives.
2. Source:
   Sourcing focuses on procurement strategies and supplier relationships. This stage involves identifying reliable suppliers, negotiating contracts, and ensuring the availability of raw materials and components. Effective sourcing can lead to cost savings, improved quality, and reduced supply chain risks.
3. Make:
   The manufacturing or production phase is where the product is actually created. This stage involves optimizing production processes, implementing quality control measures, and managing inventory. Lean manufacturing principles and just-in-time production methods can be applied here to improve efficiency.
4. Sell:
   This stage encompasses sales, marketing, and distribution activities. It involves developing sales strategies, managing customer relationships, and ensuring products reach end-users efficiently. Omnichannel fulfillment strategies have become increasingly important in this phase, especially with the growth of e-commerce.
5. Support:
   Post-sale support includes customer service, warranty management, and product maintenance. This stage is crucial for customer satisfaction and can provide valuable feedback for future product improvements and supply chain optimizations.

To optimize these end-to-end processes, companies need to focus on:

1. Integration: Ensuring seamless communication and data flow between all stages of the supply chain.
2. Visibility: Implementing technologies that provide real-time insights into inventory levels, production status, and shipment tracking.
3. Flexibility: Developing agile processes that can quickly adapt to market changes and disruptions.
4. Sustainability: Incorporating environmentally friendly practices throughout the supply chain.
5. Technology adoption: Leveraging advanced technologies like AI, IoT, and blockchain to enhance efficiency and decision-making.
6. Collaboration: Fostering strong relationships with suppliers, partners, and customers to improve overall supply chain performance.
7. Continuous improvement: Regularly analyzing and optimizing processes to identify areas for enhancement.

By focusing on these elements and adopting a holistic approach to supply chain management, companies can create a more resilient, efficient, and responsive supply chain that can adapt to changing market conditions and customer demands

Profit = Price – Cost

EIRs focus areas

Why Supply chain matters decisions

Value Chain vs Supply Chain

Push vs Pull

Supply chains are everywhere

Demand