Supply chain planning: Integrating end 2 end processes to enable data driven operations

Abstract

The fourth industrial revolution (Industry 4.0) is transforming manufacturing industry by providing manufacturers with the opportunity to utilize advanced manufacturing capabilities, cutting-edge data processing, and pioneering Information Technology (IT) throughout the product lifecycle. As a result, manufacturers are profiting from enhanced visibility into operations, significant cost savings, faster production times and the ability to provide excellent customer support. To stay ahead of competitors and win market share, any manufacturing company have to adapt to today’s quickly morphing environment and embrace change. Bekaert is a steel wire transforming company who provides steel wires to various sectors across the world. They have huge Operations and Supply Chain Network as they serve 120 countries in the world. To improve their operations, Bekaert have taken an initiative to increase the maturity level of their Supply Chain Network. They want to increase visibility through data-driven operations and detailed planning processes at each functional and operational stage. Currently, Bekaert operates at maturity level 1 in most of their processes and at level 2 in very few of them. However, majority of their customers and competitors are moving towards level 3 or level 4. To keep their competitive advantage and continue being the market leader, Bekaert has to increase its Supply Chain Maturity level. The Supply Chain Excellence team of Bekaert have commenced Basecamp project in 2016 targeting on detailing out E2E planning process and elaborate data definitions. They are aiming at rolling out maturity level 3 processes by end of 2022 where business value can be realized. The entire Basecamp project is classified as Initiate, Orientate, Define, Prepare, Pilot and Rollout phase. Vlerick plays a crucial role in Preparation of tasks, where it was required to validate detailed planning concepts, prepare E2E processes, define and validate master data elements, and draft high level data flow architecture diagram. This entire process will conclude by sending the Request for Proposal to choose the best-suited Advanced Planning and Scheduling tool for Bekaert in accordance to its current ERP landscape. The project focused on two complementary segments: • Validate and detail out the Planning concepts, processes and requirements. This included providing End—2-End planning approach for pre-designed descriptions. It helps in proactive planning approach towards operations rather than management driven events or fire-fighting events. It is required to detail out the handovers between processes and roles, and its frequency, which can make processes run smoothly and make people clear about their roles and responsibility. To improve the organizational design, the roles and responsibilities between global, regional and local actors within the planning process had been detailed out, with a focus on the handovers. In conclusion, a detailed Operating model has been drawn, which should envision the key strategic, tactical, operational activities and roles within supply chain planning. • Validate and detail out the Data model and Architecture. This included implementation-free representation of the data integration requirements for the proposed system. It will serve as a basis for determining how processes are to be satisfied. The entire process is to identify key Master Data concepts, describe key integration concepts and create data flow diagrams for each process. Scoping and Prioritizing Data elements supports in prioritization of implementation/ data preparation activities across plants. It helps in creating or loading non-existent or missing data objects in advance. When working on further increasing the maturity level, an advanced data glossary can be used for tracking and governance of data and report monthly progress per object. The project helped Bekaert in understanding where they stand currently in terms of their Supply Chain Planning and how much they need to implement before reaching the next level. The Operating model in addition to Data glossary definition helps Bekaert in expanding the nitty gritty task and data detail at each operational level and find out the shortcomings, if there are any. The Level 3 detailing ensures that the expected effort level and accountability for the daily intrinsic activities is planned and executed. With the help of Data architecture diagram, Bekaert can find out the clear route for their APS tool and configure it in the finest way possible.