Build supply chain resilience with Makersite
Effective supply chain risk management and optimisation
Identifying and mitigating risk in your supply chain
Digital twin of the supply chain
- Build supply chain resilience
- Reduce operational costs by leveraging existing systems
- Effectively drive optimization process
As of today, 90% of substance non-compliance take root in tier 2+ suppliers, yet 65% of companies have no visibility there. The reason for this is simple: most companies currently rely on outdated systems to keep track of increasingly complex supply chains.
The combination of competition, regulations, budgets, and revenue targets means that manufacturers need to be able to design and develop products extremely efficiently to get the most out of their engineering efforts. However, the data required is highly fragmented in “vertical systems” such as Product Lifecycle Management systems for technical data, ERP for raw materials and order details, supply chain management systems for supplier data, etc. To stay relevant, companies need to fundamentally rethink their processes.
From automatic supply chain mapping, deeper tier identification to supply routes and order planning this is how we help companies worldwide to optimize their supply chain and build supply chain resilience using the digital twin technology.
Step 1: Map the supply chain
Supply chain mapping helps to clearly assess the condition of your business. Actually, it can tell you which suppliers you are dependent on, where are the weaknesses in your network, and where disruptions are likely to happen. So in order to be efficient, supply chain mapping needs to reflect your company’s operations and products. This starts by collecting and connecting all relevant internal information like Bills of Materials (BOM), supplier lists, or transaction information, usually stored in PLM, ERP, and SCM systems.
How we help: Makersite smart importers allow teams to quickly import supply chain information using BOM, supplier lists, and transaction information, or directly integrate their existing systems such as ERP, PLM, or CAD with our extensive APIs. The platform automatically builds digital twins of the products and their supply chains, connecting 3rd party live data and internal information to build complete supply chains, from raw materials to finished goods. Our interactive visualization options make it easy to clearly identify existing suppliers and potential alternatives in minutes instead of days or months.
Step 2: Identify deeper tiers
Current approaches heavily rely on “cascading” invitations. “Buying” companies would issue requests to first-tier suppliers, asking them to pass on the requests to their suppliers, and so on through the entire value chain. However, this rarely works. More often than not, suppliers are reluctant to share information about their own suppliers.
One way to solve this issue is to use a probabilistic approach. Instead of sending questionnaires to suppliers, next-generation tools can calculate the probability that a supplier is part of your supply chain or not. This helps procurement and compliance teams to make more informed decisions and prioritize their actions.
How we help: Makersite is the largest database on how products are made. The platform includes thousands of products and their supply chain, which allows teams to fill in the gaps and give them a head start on supplier identification. Our heuristic approach to supply chain mapping uses factors such as known supplier relationships, distance to customer, or size of the supplier to provide a clearer overview of the deeper tier of a supply chain.
Step 3: Reinforce supply routes and plan orders
Once you have ensured complete transparency in your supply chain and started, it is time to look ahead. Having a clear idea of lead times and inventory levels is crucial to stay competitive, especially amidst severe disruptions. Using the inventory data from our ERPs, you can now estimate lead times at different sites to pick the most optimal routes based on delivery times. This step can be tricky, as this kind of data tends to be highly heterogeneous. Effective supplier management and internal product data management is key!
How we help: Makersite calculates lead times based on existing inventory, order quantity, site location, and alternative suppliers. This way, teams can clearly see what is the shortest amount of time needed to get delivered on a particular site, as well as the most optimal supplier choice for it, considerably reducing the guesswork.
Step 4: Build supply chain resilience
Supply chain resilience is all about putting change at the core of your processes. When identifying a failure point within your supply chain, you need to be able to do two things: find out the origin of that failure and understand its implications. This will dictate how to respond, whether by finding alternative suppliers, creating new routes, or even considering make/buy scenarios.
How we help: Makersite is the only platform in the world that supports multi-criteria analyses. In addition to the environmental perspective, opportunities can be evaluated from their cost, risk, and supply chain dimensions. Our Artificial Intelligence will analyze your operational data and automatically identify carbon savings opportunities. Engineers can easily compare components to their alternatives and quickly see the impacts of design changes on the company objectives, alongside the perspective of their regulatory compliance, supply risk, and cost of production, simultaneously. Analyses, decision making, and reporting are considerably sped up, to up to 100x faster than with traditional systems.
Don’t wait up. Find out how Makersite can help your company build supply chain resilience!