Supply Chain Management

A fast flow of information throughout the entire supply chain is unavoidable for risk minimization and is not subject of a discussion in volatile times or crisis situations. The flow of information within the supply chain is characterized by various forms of transmission: EDI, cloud applications or other system interfaces are manifold in the areas of value-added networks for digital risk monitoring and process efficiency increase. If corporate processes are examined more closely, one area remains digitally underrepresented at the moment: The digital twin of a production tool. The handling of these production tools must now be taken to a new level.

Currently there are many optimistic expectations for the new and still little understood technology “blockchain”. This paper takes a critical stance and analyses the potential of blockchains in supply chain management (SCM). In the context of SCM, the application of blockchains promises transparency and traceability. It turns out that the expectations are not always met, because blockchains lose many of their positive characteristics when used in SCM. This is mainly due to the fact that both a digital level (information) and a physical level (goods) exist. In the original application area of blockchains - cryptocurrencies - only the digital level exists. In any case, blockchain technology (as well as every other technology) will not be able to solve the coordination problems within supply chain networks without the individual companies being willing to implement expensive IT interfaces and share their information.

Blockchain technology (BCT) is one of the most promising technologies of the present that will be of even greater importance in the future, especially for manufacturing companies, in order to improve cross-company collaboration and make processes more transparent to the customer. However, BCT is not yet widely used as a trusted tool to ensure a clean and unadulterated flow of information. In addition to the potential, this paper discusses the challenges for the use of BCT and derives a solution concept based on the St. Gallen Management Model that shows potential BCT users possible application scenarios.

Our production, logistics and communication networks are becoming increasingly complex. More and more information has to get from sender to receiver in an increasing speed. In this interconnected and digital world, more people, companies, machines and products interact with each other. Each of these network participants has specific characteristics that describe its identity. On the basis of these digital identity it is possible to connect the entities directly with each other.

In the Industrial 4.0 era, much more data is entered into production planning and the selection of suitable production and storage locations than before. In view of the large number of decision-relevant data, it is best to use mathematical methods to calculate which product should be produced at which location and when. In this context, linear programming is of particular importance. The article describes its use by means of practical examples. On IBM Decision Optimization Center as technical platform, software partners can create applications for better decisions in all areas of production and location optimization, including the entire production and logistics network.

Recent advancements in cyber physical systems (CPS) and industry 4.0 concepts are expected to result in a disruptive change of business processes in industry and commerce. In particular, this refers also to supply chain management (SCM) and logistics systems and processes. Methodically, maturity models can be used to determine the maturity level of SCM and logistics organisations. In this paper we present an extension for a maturity model being able to check the industry 4.0 compatibility of SCM systems and processes. Moreover, the aim is to provide a tool supporting the transformation towards SCM 4.0-ready systems and processes. The requirements for the digital transformation process are described and important fields of actions are discussed.

The research project “eStep Mittelstand - modular solutions for SME to strengthen the independent integration of ebusiness standards in complex supply chain processes” has developed solutions to build up the usage of ebusiness standards in business processes of SME. The methods and models enable SME to run successful ebusiness projects despite high complexity. The transformation to standardized, electronic business processes will be facilitated by the self assessment tool (SAT), the decision tree (EB) and the eStep Mittelstand Middleware (eMiMi). A DIN SPEC, developed together with the Deutschen Institut für Normung (DIN) e. V., provides a guideline to enlarge the functionalities of SAT and EB.

Guaranteeing the quality of products and processes within supply chains is essential. Nevertheless, quality management is still restricted to production processes while logistics processes are normally not considered. IT infrastructures for exchanging quality data are often missing. Those needs can be addressed by using sensor systems in combination with a cross company exchange of sensor data based on EPCIS. In order to realise this approach, sensor systems, the EPCIS standard, decision support systems and business models need to be further developed.