Is your supply chain giving you a competitive advantage? If not, Surgere has a solution.
By Sarah Trescott
Annually, the automotive industry alone loses billions of dollars due to supply chain mismanagement. For most, the deficit is credited to losing between 16 and 18 percent of reusable packaging assets. The multi-billion-dollar problem in the automotive industry is indicative of an issue with the current state of supply chain management across all industries. Simply stated — the status quo of supply chain management has been outgrown.
To further this, for most, even the status quo of digitalization hasn’t been up to par. A McKinsey Digital report cites that five out of six of the world’s largest companies adopting IoT solutions aren’t seeing any kind of significant ROI.
Consider this — 92 percent of businesses believe that high-quality data is the fuel for digital transformation, but only 15 percent of businesses utilizing digital solutions report that the data they receive is actually clean and trustworthy.
Three out of four businesses say that poor quality data has made it challenging to achieve their digital transformation plans. Simply put, the time spent finding information and redoing data analysis is a huge drag on productivity for those trying to digitalize their supply chain.
IDC estimates searching for data can cost a company 2.5 hours per each person’s daily activities involving supply chain management. This effectively diminishes a company’s ROI, efficiency and competitive advantage.
Despite these troubling statistics, 81 percent of survey takers at companies with supply chains believe that AI will transform the supply chain in the next 10 years and 79 percent believe AI will become a core competency within three years.
The top drivers for AI adoption in the supply chain remain the same: improving efficiency, cost reduction and revenue increase, but these cannot occur without trustworthy data.
Surgere’s Competitive Advantage – Trustworthy Data
Surgere customizes unique solutions for supply chains utilizing sensor-based science – in conjunction with its proprietary cloud-based solution – that delivers unprecedented visibility, data and ROI, while providing 99.9 percent accuracy.
Bill Wappler, Surgere’s CEO, said, “Our customers rely on us to be efficient, precise and trustworthy…To us, ‘innovation’ is about thinking scientifically as well as creatively, extending the confines of the technology that exists today.”
Surgere is the developer of the web-based community AutoSphere, which was specifically designed to link automotive OEMs with their Tier 1 suppliers. AutoSphere allows automotive supply-chain partners to engage in the same set of activities while drawing on a common database and has provided many automotive solutions for companies like Honda of America.
Relevant data provided by Surgere can pinpoint — with 99.9 percent accuracy — when a supplier has loaded a truck, what’s on the vehicle, where it’s going, when it arrives at the distribution center, and when the OEM accepted receipt. Surgere’s system also allows for close tracking of empty containers when they’re returned to the supplier.
Technological advancements are an integral part of what makes Surgere’s solutions so innovative and effective compared to others. Blockchain — as a disruptive technology — enhances Surgere’s ability to identify and track transactions digitally and share that information through distributed ledgers.
“Blockchain enables instant visibility of inventory through transactions, which can be immediately and collectively processed throughout the supply chain,” says Rusty Coleman, Surgere’s VP of Digital Transformation.
“Supply chain professionals know it’s important to reduce lead-time and inventory,” says Coleman. “That increases cash flow, improves efficiency and provides timely available to promise. Blockchain is a tool that should be leveraged to give access to instant and transparent information. Blockchain is the new payback tool to explore and exploit.”
Accessible data can remove artificially created demand patterns and make visible smooth and continuous demand for Tiers near real-time. Harnessing that visibility and creating new rules within ERP can lead to operations efficiencies and reduce lead-time across the supply chain.
Those organizations seeking a digital supply chain solution and the desire to step into technological advancements, like Blockchain, will experience the fulfillment of ROI, trustworthy data and efficiency with Surgere.
Sarah Trescott is a marketing manager at Surgere.