Global Supply Chain Optimisation by Using Sensing Solutions

Abstract (Swedish)

Problemformulering:
Internationalisering, högre volatilitet på efterfrågan och snabbare försörjningskedjor är faktorer som gör den globala kedjan mer komplex. Därför strävar organisationer efter en bättre bild av deras försörjningskedja realtidsprestanda. Därför behövs en lösning som möjliggör en bättre förståelse av komplexiteten och gör kedjan mer effektiv. Värt att nämna är att bättre synlighet i sig inte nödvändigtvis betyder att försörjningskedja kommer att bli mer effektiv. Det är lika viktigt att överväga hur data analyseras, delas och visas samt vilka åtgärder som kan tas.
Syfte Projektets mål är att identifiera, studera och analysera möjligheterna för synlighet i den globala försörjningskedjan med hjälp av Sensing Solutions. Projektet syftar också till att ge Visilion en analys av marknadens behov, vilka möjligheter lösningen bidrar med och till slut ge rekommendationer om framtida utvecklingar.

Metod:
Forskningsmetoden för projektet är en explorativ enkel fallstudiemetodik. En abduktiv approach har använts för att samla in data. Data samlas in genom att granska akademiska och praktiska litteratur och genom att genomföra intervjuer med fältsexperter. För att analysera den insamlade datan, användes pattern-matching och product-market-fit metoder.

Slutsatser:
Sensing Solutions möjliggör en bättre synlighet i den globala försörjnings-kedjan och den påverkas främst av transparens. Transparens är i sin tur relaterad till fyra andra faktorer, refereras till som dimensioner av författarna, vilka är (1) High-quality data, (2) Relationship, (3) Awareness, and (4) Sustain-ability. Några av möjligheterna som dessa faktorer ger inkluderar förbättrad beslutsfattande, ökat samarbete, optimerad rutt-planering och minimerad CO2-utsläpp. Dessutom finns det en korrelation mellan de identifierade faktorerna. Därför har en modell utvecklats för att betona vikten av synlig-het och dess samband till faktorerna. Analysen visar att Visilion tillgodoser nästan alla identifierade marknadsbehov. Dock finns det vissa förbättringar som Visilion kan överväga.

Abstract

Problem Definition:
Internationalisation, higher demand volatility, and faster Supply Chain (SC) speed are factors that are making the global SC more complex. Therefore, organisations strive for a better picture of their SC real-time performance. Hence, a need for a solution that allows a better understanding of the complexity and makes the chain more efficient is required. It is worth mentioning that better visibility itself does not necessarily mean that the SC will become more efficient. It is equally important to consider how the data will be analysed, shared and displayed as well as what actions can be taken.
Purpose The project’s objective is to identify, study, and analyse the opportunities SC visibility offers through adopting sensing solutions. Furthermore, the project aims to provide Visilion with an analysis of the market needs, what opportunities the solution brings, and finally, provides recommendations on future developments.

Method:
The research approach of the project is an exploratory single-case study methodology. An abductive approach was applied to obtain the data. The data is collected by reviewing academic and practitioner literature and conducting interviews with field experts. To analyse the data collected, pattern matching and a product-market fit analysis were conducted.

Conclusions:
Sensing solutions enable better visibility in the global SC and are mainly impacted by transparency. Transparency is, in turn, interrelated to four other factors, referred to as dimensions by the authors, which are (1) High-quality data, (2) Relationship, (3) Awareness, and (4) Sustainability. Some of the opportunities brought by the dimensions include enhanced decision-making, increased collaboration, optimised route planning, and minimised CO2 emissions. Further, there is a correlation between the identified factors. Thus, a model has been developed to emphasise the importance of visibility and its interconnection to the factors. The analysis shows that Visilion addresses almost all the identified market needs. However, there are some slight improvements that Visilion could consider.

Popular Abstract

Traditional supply chain structures no longer fit today’s turbulent, complex, and volatile world. Supply chain visibility, enabled by digital technologies, is therefore required to reduce the vulnerability of supply chains and allow an easier bounce back from disruptions.

Background:
The recent global events have disrupted supply chains heavily, affecting both organisations and consumers. The disruptions affected everything from consumer goods shortages, such as hand sanitiser, to semiconductor shortages and their implications for manufacturing industries. These disruptions led to an imbalance between supply and demand, driving up costs for both organisations and consumers. To mitigate these effects, it's crucial to have better visibility into the entire supply chain and the ability to quickly adapt to changes in demand.
Visibility Factors
The project’s results indicate that digital technologies enable better visibility in the global supply chain. It also demonstrates that visibility is mainly affected by transparency. Transparency is, in turn, interrelated to four other factors as the research showed. These factors are referred to as dimensions by the authors, which are (1) High-quality data, (2) Relationship, (3) Awareness, and (4) Sustainability. The authors identified these dimensions to categorise the opportunities brought by better visibility. The dimensions make the opportunities more manageable to collaborate with. Some of the opportunities brought by the dimensions include enhanced decision-making, increased collaboration, optimised route planning, and minimised CO2 emissions.

Visibility Model:
After identifying what factors are needed to enable better visibility, a model referred to as the visibility model has been developed. The model emphasises the importance of visibility and its interconnection with the other identified factors. The model illustrates that visibility is the frame for all the factors. Transparency is set as the core as it plays a crucial role in the visibility and the four dimensions. Further, the model illustrates two different types of transparency, i.e., ex-ante and ex-post. Ex-ante refers to the dimensions that come in the early stage, whereas ex-post refers to the dimensions that come after achieving a certain level of transparency.

Objective:
The objective of this project is to identify and study the opportunities for supply chain visibility that are offered through adopting sensing solutions. The project investigates how Visilion meets the market needs and provides recommendations for future developments of Visilion’s solution. Studying this topic contributes to a better understanding of a widely used term in the supply chain, i.e., visibility. Further, as visibility has conceptual characteristics, meaning it is hard to measure its improvements, the visibility model can be used by organisations to make tangible changes in each dimension to improve their visibility.

Supply Chain 4.0:
The project connects different supply chain topics, i.e., supply chain resilience, visibility, transparency, and technology. All these areas were considered from the fourth industrial revolution perspective and how technology can help enable real-time visibility as well as a quicker revolution in the supply chain. The supply chain revolution and the digital transformation are referred to as supply chain 4.0, which is the industry 4.0-adapted supply chain. The sensing solutions that Visilion is developing are key in enabling supply chain 4.0. The introduced visibility model creates a strong connection between the four identified dimensions. This model illustrates the interdependence and the correlation between the various dimensions of visibility and transparency.

Implementation:
This project can be used in future studies of supply chain visibility and what effect sensing solutions have on it. Additionally, it can be used to find literature on the topics discussed where the theoretical platform links those different topics together from several sources. Moreover, the result of this project can be used by Visilion to develop the product further. The results also present the underserved needs based on the theoretical platform and empirical findings. Last but not least, the result shows that Visilion’s solution addresses almost all the identified market needs despite some underserved needs that can be considered as future development.

Approach:
The research approach of the project is an exploratory single-case study methodology, and the data is collected through an abductive approach. Further, the data is obtained through expert interviews and literature reviews, both academic and practitioner literature, and analysed using pattern matching and product-market fit analysis.

• author: Belbisi, Ahmad and Belbisi, Amjad
• supervisor: Bertil Nilsson
• organization: Production Management
• course: MIOM05 20222
• year: 2023
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• keywords: Supply Chain Disruptions, Supply Chain Resilience, Supply Chain Visibility, Supply Chain Transparency, Real-Time Visibility, Internet of Things, Industry 4.0
• report number: 23/5702
• language: English
• id: 9109358
• date added to LUP: 2023-02-01 13:35:00
• date last changed: 2023-02-01 13:35:00