Discover how DHL Group increased connectivity across the enterprise and automated multiple processes end-to-end
Supply chain optimization is adjusting operations to ensure optimum performance across a supply network. Supply chain optimization ensures efficiency while reducing costs and making sure high-quality products are delivered in good time.
A strong supply chain is the backbone of any good business. An inefficient supply chain can severely impact operations and overall business performance. Not to mention, if supply chains aren’t optimized, it can lead to high operating costs and dissatisfied customers.
There are numerous reasons why organizations want to optimize their supply chain, mostly aimed at improving overall efficiency, including:
Eliminate silos: Disconnected supply chains that operate in silos can severely disrupt the flow of data and information between departments and organizations. A lack of connectivity can lead to miscommunication and not having visibility over data hinders decision-making. A unified and integrated tech stack also helps to enable end-to-end process automation, which improves efficiency across the supply chain.
Gain competitive advantage: Companies with optimized supply chains can bring products to market faster and fulfill customer orders faster, building a better brand reputation and giving them an edge over competitors. An optimized supply chain will also reduce operating costs, which can in turn be put back into the business to further improve operations.
Meet ESG requirements: Organizations need to consider their sustainability and environmental impact. There are numerous rules and regulations that must be adhered to, such as sustainability and ethical standards. An optimized supply chain helps to meet these targets and can reduce waste and pollutants by making their processes more eco-friendly, which will save money and build a good brand reputation.
Enable agility and adaptability: A responsive supply chain is important to respond to market changes, both predicted and unforeseen. A responsive supply chain can reroute, switch suppliers, or adjust production scales to help continue to satisfy customers and adapt to meet changes to regulations.
Integrate systems and data: A big component of supply chain optimization hinges on connectivity. Integration of systems that unifies data in a centralized platform provides end-to-end visibility and transparency to aid decision-making, identify and prevent bottlenecks and enhance collaboration across departments.
Automate and optimize processes: Connected systems and information provide the perfect foundation for process automation, which can drive efficiencies across the business, including procurement, production, inventory management, and logistics.
Utilize data: If you collect data, you should using it to optimize your processes. You can feed your data to intelligent technologies, such as AI and machine learning to predict trends and demands. Data can be used in your demand forecasting to prevent over- or under-productions. And you can utilize real-time data to improve visibility and make informed decisions daily.
Improve transportation and logistics: Consider ways your shipping and logistics could be improved to enhance the delivery element of your supply chain. This could mean using technology to plan and optimize shipping routes which reduce delivery times and fuel costs. Or exploring relationships with different third-party logistics providers who can improve efficiency for you.
Enable agility and responsiveness: Develop flexible systems that can adapt to unforeseen changes in the market that will impact your output. Incorporate technologies that will help you be as agile as possible, such as smart manufacturing practices and agile forecasting and planning that leverage machine learning using data trends.
DHL Group: DHL optimized its back-end operations by using Bizagi to enable connectivity and efficiency via its Global Business Services team, which processes over 5 million cases a year through our low-code platform. They created a Vendor Master Data Management Portal to centralize data and create a standardized process that improved the experience for employees, customers, and stakeholders. This eliminated the need for manual intervention by connecting the systems and saved many FTE with end-to-end automation.
Bunzl Retail Supplies: The not-for-resale goods supplier used Bizagi to optimize multiple processes across its supply chain, including the product lifecycle management process, which processes 4,000 cases per month with the standardization saving time and providing accuracy of data with automated audit trails. Additionally, their customer enquiry process was automated to gather data and call logs, so agents are now instantaneously presented with all relevant data on a single screen so they can resolve enquiries faster, helping them resolve cases 33% faster.
Supply chain optimization in retail example
CBC: The Central American Bottling Corporation optimized several processes in their supply chain operations using Bizagi to improve efficiency. They used Bizagi to orchestrate their vendor information from SAP, which allowed them to automate the inventory check process. Over 2,200 vendors submit their presales information and warehouses have a limited window to load trucks ready for the next day deliveries. All information is now visible through a single portal, saving time and ensuring no errors are made. Bizagi also creates load and route planning sheets to the driver detailing the most efficient route and best way to load the truck, ensuring they are on the road before city-wide HGV restrictions which curb pollution and traffic.
Falabella: The largest department store in Latin America, Falabella optimized their e-commerce operations within its supply chain by managing and automating processes through a central platform. This includes managing 10,000 graphics and 500,000 web pages, and the automation of e-commerce product publication. A single version of the truth is available through the Bizagi platform, which provides visibility across the organization, with decision-making now supported by standardized processes and supporting data.
Unilever: From Unilever International’s APAC hub in Singapore, over 120,000 shipping documents are generated annually to manage cross-border shipments. This was managed internally by sharing information in Excel spreadsheets over email, which meant no control or traceability over the process. This resulted in shipments held up in customs. Using Bizagi, Unilever created a central platform to generate shipping documentation and pricing information with centralized approvals and visibility to everyone via a customer shipping dashboard, helping to clear cross-border customs faster and get goods to customers on time.
For your business to remain competitive, you always need to look for ways to optimize your supply chain. Take an agile approach with a low-code automation platform that offers an integrated approach to working and enables end-to-end orchestration and automation to boost productivity and enhance communication while keeping costs down.
Find out more about how Bizagi’s supply chain solution could support your business and get more tips in our Supply Chain Automation Guide.
