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A.3.4. Supply Chain Management

Managed flow of goods, services & information between businesses.

The capability Supply Chain Management (A.3.4) is part of the capability area Business Enablers in the Business Pillar.

Managed flow of goods, services & information between businesses.

ASCM

Supply chain management --- The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally.

Supply chain management is the process of coordinating and optimizing the various activities that are required to bring a product or service from concept to market. This includes sourcing raw materials, manufacturing and assembling products, warehousing and storing products, distributing products to customers, and managing the return and disposal of products.

Effective supply chain management is critical for the success of any business, as it can impact the quality, cost, and speed of delivering products or services to customers. In order to manage the supply chain effectively, organizations must have a clear understanding of their business processes, supply chain partners, and the resources required to bring a product or service to market.

There are several key components of supply chain management, including:

Demand planning: forecasting customer demand for a product or service to ensure that the right quantities are produced and made available to meet customer needs.

  1. Procurement: sourcing raw materials and other supplies from suppliers to support the production of a product or service.

  2. Production: manufacturing and assembling products according to demand and quality standards.

  3. Warehousing and storage: managing the storage and distribution of products to ensure that they are available when needed.

  4. Distribution: delivering products to customers, either directly or through intermediaries such as wholesalers or retailers.

  5. Customer service: managing customer relationships and ensuring that customers receive high-quality products and services.

By managing these various activities in an effective and coordinated manner, organizations can optimize the flow of goods and services from production to customer and improve efficiency, reduce costs, and increase customer satisfaction.

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Work in progress

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Work in progress, this is just the results of an initial brainstorm session, needs to be worked out

  1. Are all your supply chains, internal and external, identified and described?
    • Are standards used for identifiers (and all other data) across the ecosystem of the supply chain?
  2. Data Integration: How many of them are tied to business capabilities?
    • Are all concepts around products, services, contracts, deliveries, distribution defined with machine-readable shared, standard semantics?
  3. Risk: Did you define your risk-exposure associated with your supply chain?
    • Do you have a risk assessment for every vendor?
    • Do you have a risk assessment for any third party in your supply chain?
    • As an example risk: is your cybersecurity assessment done for all parties in your supply chain?
    • Same for data protection/privacy
  4. Does every line of business manager understand who their vendors are?
  5. How well do you understand (and how well is that defined), the products and services in your supply chain?
  6. How well is your supply chain optimized in relation to other supply chains of other lines of business?
  7. Are all products and services in your supply chain covered through their whole life-cycle? Birth-to-death? / Cradle-to-Cradle?
    • (Cradle to cradle is a sustainable business strategy that mimics the regenerative cycle of nature in which waste is reused. In nature, when a tree or animal dies or creates waste, that waste breaks down and becomes nutrients for another process.)
  8. Is any of the above automated and/or modeled?
  9. Is all data related to your value chain shared across all other relevant lines of business?
    • Do you share vendors, distributors etc
    • Risk analysis on your vendors (financially stable, quality, backup vendor etc, how dependent is your LOB on any given vendor, vendor lock-in)
  10. Are all contracts digitized?
    • Are they registered in a distributed immutable ledger that’s not controlled by a single party?
    • Distributed
    • Transparent
  11. How standard is your supply chain, is it using shared practices and concepts across the industry?

The maturity levels of supply chain management with an Enterprise Knowledge Graph can be described as follows:

  1. EKG Initiation: At this stage, the organization is just starting to explore the use of a knowledge graph to represent its supply chain. The focus is on understanding the potential benefits and limitations of using a knowledge graph, and on developing a basic understanding of how to create and maintain a knowledge graph. This might involve conducting research and pilot projects to test the feasibility and effectiveness of using a knowledge graph.

  2. Extensible Platform: At this stage, the organization has implemented an Enterprise Knowledge Graph and is using it to represent key components of its supply chain, such as suppliers, customers, and products. The focus is on expanding the scope and complexity of the knowledge graph, and on developing the skills and capabilities needed to maintain and update the graph as the supply chain evolves. This might involve integrating the knowledge graph with other systems and processes, and training employees on how to use the graph.

  3. Enterprise Ready: At this stage, the Enterprise Knowledge Graph is being used to represent the full scope of the organization's supply chain and is integrated with other systems and processes. The focus is on optimizing the use of the knowledge graph and on developing advanced skills and capabilities in using the graph to support decision-making and supply chain management. This might involve implementing advanced analytics and machine learning algorithms to extract insights from the knowledge graph, and using the graph to support real-time decision-making.

  4. Strategic Asset: At this stage, the Enterprise Knowledge Graph has become a key strategic asset for the organization, and is being used to drive innovation and differentiation in the supply chain. The focus is on leveraging the knowledge graph to support business growth and to create new value for customers. This might involve using the knowledge graph to develop new products and services, or to differentiate the organization's offerings from those of its competitors.

  5. Operational Ecosystem: At this stage, the Enterprise Knowledge Graph has become an integral part of the organization's operational ecosystem and is being used to support a wide range of supply chain functions. The focus is on continuously improving the use of the knowledge graph to support the organization's goals and objectives. This might involve using the knowledge graph to support automation and digital transformation, or to enable real-time monitoring and response to supply chain disruptions.

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Work in progress, describe the 5 maturity levels of this capability

Contribution to the Enterprise

In the EKG context, the above ASCM definition of Supply Chain Management could be broadened by also including any detailed supply chain within an ecosystem or enterprise where any one given "operation" delivers "value" to another "operation".

Without an Enterprise Knowledge Graph, supply chain management would likely involve the use of more traditional methods for storing and organizing information about the supply chain. This might include the use of spreadsheets, databases, or other types of data management systems.

Without the centralized and organized structure of an Enterprise Knowledge Graph, it may be more difficult for an organization to get a comprehensive and up-to-date understanding of its supply chain operations. This could lead to inefficiencies and delays in decision-making, as well as increased risk of disruptions in the supply chain.

In addition, without an Enterprise Knowledge Graph, it may be more challenging for an organization to facilitate collaboration and communication with its supply chain partners. This could lead to a lack of coordination and visibility, which can lead to additional challenges in managing the supply chain effectively.

Overall, without an Enterprise Knowledge Graph, supply chain management may be less efficient and more prone to disruptions, which could result in increased costs and other challenges for the organization.

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Work in progress, describe how this capability is possibly being delivered today in a non-EKG context and optionally what the issues are that EKG could or should improve

An Enterprise Knowledge Graph is a type of database that stores and organizes information about an organization's various entities, such as products, people, customers, suppliers, and logistics assets, as well as the relationships between these entities. In a supply chain management context, an Enterprise Knowledge Graph can be used to capture and organize information about the various components of the supply chain, including suppliers, manufacturers, warehouses, distribution centers, and retailers.

By using an Enterprise Knowledge Graph to manage supply chain information, an organization can gain a more comprehensive and up-to-date understanding of its supply chain operations. This can enable the organization to make more informed and efficient decisions about managing its resources, such as identifying bottlenecks in the supply chain, optimizing inventory levels, and improving delivery times.

In addition, an Enterprise Knowledge Graph can be used to facilitate collaboration and communication between different parties in the supply chain. For example, an Enterprise Knowledge Graph could be used to share real-time updates about inventory levels, delivery schedules, and other supply chain-related information with suppliers, manufacturers, and other partners. This can help to improve coordination and reduce the risk of disruptions in the supply chain.

Overall, the use of an Enterprise Knowledge Graph can help organizations to better manage their supply chains, improve efficiency, and reduce costs.

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Work in progress, describe how this capability would be delivered or supported using an EKG approach, making the link to the "how" i.e. the EKG/Method.

There are many different use cases for supply chain management, as it is a critical component of businesses in a wide range of industries. Some common use cases for supply chain management include:

  1. Sourcing raw materials: In many industries, organizations rely on a network of suppliers to provide the raw materials needed to produce their products. Supply chain management can help organizations to optimize the sourcing of raw materials by identifying reliable suppliers, negotiating favorable terms, and managing the flow of materials from supplier to production facility.

  2. Managing inventory: Effective inventory management is critical for ensuring that products are available when needed to meet customer demand. Supply chain management can help organizations to optimize their inventory levels by forecasting demand, managing lead times, and minimizing stock-outs or excess inventory.

  3. Distributing products: Supply chain management can help organizations to effectively distribute their products to customers, whether through direct-to-consumer channels or through intermediaries such as wholesalers or retailers. This can involve managing transportation logistics, warehousing and storage, and customer service.

  4. Improving efficiency: By optimizing the various activities involved in the supply chain, organizations can improve efficiency and reduce costs. This can involve streamlining processes, automating tasks, and using data analytics to identify inefficiencies and opportunities for improvement.

  5. Managing risks: Supply chain management can also help organizations to mitigate risks such as disruptions in the supply chain, quality issues, and delays in delivery. This can involve implementing contingency plans, diversifying suppliers, and monitoring the supply chain for potential risks.

  6. Managing global supply chains: Many organizations operate in a global context, with suppliers, manufacturers, and customers located around the world. Supply chain management can help organizations to manage the complexities of a global supply chain, including navigating differences in culture, language, and regulations.

  7. Collaborating with partners: Supply chain management can involve working closely with a network of partners, including suppliers, manufacturers, logistics providers, and customers. By using tools such as enterprise resource planning (ERP) systems and supply chain management software, organizations can improve communication and collaboration with their partners.

  8. Implementing sustainable practices: Increasingly, organizations are looking to implement sustainable practices in their supply chains to reduce their environmental impact and improve their social and ethical practices. Supply chain management can help organizations to identify and implement sustainable practices throughout the supply chain, such as reducing waste and emissions, using recycled materials, and supporting ethical labor practices.

  9. Responding to disruptions: Disruptions in the supply chain can have significant impacts on an organization's operations, such as delays in delivery, quality issues, and increased costs. Supply chain management can help organizations to anticipate and respond to disruptions in the supply chain, such as by implementing contingency plans or diversifying suppliers.

  10. Enhancing customer experience: Ultimately, the goal of supply chain management is to deliver high-quality products and services to customers in a timely and cost-effective manner. By optimizing the various activities involved in the supply chain, organizations can enhance the customer experience and build long-term customer relationships.

Overall, supply chain management is a critical function that plays a key role in the success of businesses in many different industries. By optimizing the various activities involved in the supply chain, organizations can improve efficiency, reduce costs, and better meet the needs of their customers.

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Work in progress, list examples of use cases that contribute to this capability, making the link to use cases in the catalog at https://catalog.ekgf.org/use-case/..

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