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BuildingaSmarterSupplyChain
ThepowerofAIandBlockchain
todrivegreatersupplychainvisibilityandmitigatedisruptions
BuildingaSmarterSupplyChain
ThepowerofAIandBlockchaintodrivegreatersupplychainvisibilityandmitigatedisruptions
Theglobal,digitaleconomyisradicallyreinventingbusiness.Forleadersacrossindustries,it’snotjustthepaceofbusinessthat’schanged–it’severythingfromcustomerexpectationstocompetitivelandscapes.
87percentofCSCOssayitisextremelydifficulttopredictandmanagedisruptions
AccordingtoIDC,33percentofallmanufacturingandretailcompanieswillbedisruptedbydigitally-enabledcompetitorswithinthenextthreeyears.1
Todaymorethanever,businessesmustevolvetostaycompetitive.Savvyleadersarelookingtotheirsupplychainstodotheheavylifting,drivingdifferentiationthatimpactsquality,delivery,costs,customersatisfactionandmore.
CSCOscitealackofvisibilityas
thekeyhurdleinmitigatingdisruptions:
Infact,84percentofCSCOscitelackofvisibilityastheirbiggestchallenge
Yet,mostbusinessesareoperatingwithsupplychainsystemsbuiltinadifferentera.Theystruggletomakesenseofanoverwhelmingamountofdatascatteredacrossdifferentprocesses,internalandexternalsources,andsiloedsystems.Theystrugglewithvisibility,andwithconnectingandexchangingcriticalinformationacrossanincreasinglycomplexecosystemofpartnersandsuppliers.
Lessthan10%oftoday’ssupplychaindataiseffectivelyused,andmostcompaniesarevirtuallyblindtothe80%ofdatathatisdarkorunstructured.Withtheselimitations,itisdifficulttooptimizesupplychainoperations–andthebusinessisexposedtounnecessarydisruptions,delaysandrisks,aswellasincreasedcosts.
1. TheThinkingSupplyChain,IDC,March2017
Page2 BuildingaSmarterSupplyChain
ANewEraofSupplyChainVisibility
“AIandblockchainaretransformativetechnologieswhichpromisetochangethewaybusinessesandindustriesoperate,particularlyintheirmanagementofsupplychainandabilitytoadaptbasedondemand.”
—JeanetteBarlow,VicePresident,OfferingManagement&Strategy,IBMSterling
Westandatasignificantinflectionpointintermsofdisruptivetechnologies.AI,Blockchain,theCloud,DigitalBusinessNetworksandIoTholdincrediblepotentialtoradicallytransformbusinessandthesupplychain.
Forexample,AIcanrapidlyandcomprehensivelyread,understandandcorrelatedataatincrediblescaleandspeed.It’sagame-changerincapturingandunderstandingallthedataavailabletoyourenterprise–andthencuttingthroughthedata“noise”toprovidereal-timeanalysisandactionableinsights.WithAI,youcanexpandtheuniverseofvaluabledatasourcesavailabletoyourenterprise,andincreasetheusefulnessofthat
data.
By2021,one-thirdofmanufacturersandretailerswillbetrackinggoodsusingblockchain-IDC
Blockchainisideallysuitedtolargenetworksofdisparatebusinesspartners.Byprovidingasingleversionofthetruththroughasharedledger,blockchainincreasestrustand
efficienciesacrossthenetwork,whichiscrucialineliminatingandresolvingdisruptionsanddisputes.Withblockchain,transactionrecordsareimmutable(ortamperproof)andsecure,agreeduponbyallpartiesandeasilyreferenceable.Italsocreatesasharedaudittrailforusebyeveryoneinthepartnerecosystem.
Bytheendof2020,one-thirdofallmanufacturingsupplychainswillbeusinganalytics-drivencognitivecapabilities,thusincreasingcostefficiencyby10%andserviceperformanceby5%
Together,AIandBlockchain,EmpowertheSupplyChainto:
Gainend-to-endsupplychainvisibilityacrosssystemsanddatasources
Retrieveandcorrelaterelevanttransactionaldata90%fastertogaincriticalinsights
Improvecollaboration,gainefficienciesandreducecosts
Reducetimetovaluebyatleast85%
Proactivelypredictandmitigatedisruptions
Reducemitigationtimefromdaystominutes
PlanandarchitectforthefuturewithAIandblockchain
BuildontopofcurrentITinvestmentsandrealizevaluequickly
Page3 BuildingaSmarterSupplyChain
FoundationsforBuildingaSmarterSupplyChain
Asmartersupplychain,poweredbyAIandblockchain,providesgreatervisibilityandinsightsintotheend-to-endsupplychain–includingthetransactionallifecycleandpartnerecosystem.ItleveragesthepowerofAItoconnectandcorrelatedatafromdisperseanddisparatesystemsandsources,andsortsthroughdataoverloadtoprovidenewinsightsandrelevantalerts.Itcomplementsandelevatesexistingsystemsandinvestments.
AIcanalsohelpyouproactivelypredict,assessandmitigatedisruptionsandrisks.Asmartersupplychainthatleveragesthistechnologybuildssignificantlymoreresiliencyandresponsiveness.
Leadingcompaniesarelearningfirsthandhowthesedisruptivetechnologiesenableimprovedefficiencyandreducedcosts.Theyrepresentaneweraofsupplychainmanagement,complementingandelevatingexistingsolutionsacrossplanning,sourcing,inventory,fulfillment,logisticsandsupplyassurance.
WhenyoucombineAIandblockchain,theimpactisexponential.Supplychainsolutionscanembedthesetechnologiesinmeaningfulways,suchasto
driveimprovedinsightsandusabilityofthevastdataaffectingsupplychainorganizations.Fromcorrelationandanomalydetectioninbusinesstransactions,togaininginsightsbytappingintointernalandexternaldatasources,withthesetechnologiesorganizationscanproactivelygetaheadofevents.WhenAIandblockchainarecombinedtheycanenableapowerfulplatformthatprovidesbothasourceofshared,immutabledataforsuppliersandpartners–withthecapabilitytoimmediatelyidentifytradingpartnerbehaviorsandevents.
Thecompaniesreferenced[below]inthesecasestudiesareallearlyleadersinimplementingAIandblockchain.Allofthemsoughttobethedisruptorintheirindustry,ratherthanbedisrupted.Theyeachwereabletobuild,withthehelpofIBM,capabilitiesleveragingtheirexistingsystemsandapplicationstodriveimmediatevalueinspecificusecasesprioritizedbythebusiness.
GainEnd-to-EndVisibility
Illuminatethe80%ofdatathatisdarkandunstructured
Quicklycorrelateandunderstanddatafromacrossdisparatesystems
Sortthroughdataoverloadandgainnewinsights
Establishsharedvisibilitywithpartnersandkeysuppliers
MitigateDisruptionsandRisks
Proactivelypredict,assessandmitigatedisruptionsandrisks
Reducedisruptionmitigationtimeandrelatedcosts
Retainknowledgeandbestpracticesforfuturereference
HelpcutdisruptionsinhalfwithAI-enabledsmart-alertsandpredictivecapabilities
Page4 BuildingaSmarterSupplyChain
Page
PAGE
5
BuildingaSmarterSupplyChain
Fortune500CompanyLeveragesAIforGreaterVisibility,ImprovedOrderManagement
Aleadingindustrialautomationcompanylackedvisibilityintoitsend-to-endsupplychain–andspecificallyintoinboundsupplydeliveriesanddelays.Thismadeitdifficulttoeffectivelymanagecomplexoutboundordersandmeetcustomershippingandbundlingpreferences.ThecompanycapitalizedonAItoprovideaconnectedviewacrosstheirsupplychainandgaingreatervisibility
intomulti-componentorders.IBM’sAIsolutionhelpedthecompanyeffectivelymanagedataoverload,providingalertsforlate-deliveriesaffectinganycomponentinabundledorder.Inashorttime,thecompanyquicklytrainedtheAIsolutiontoassessorderstatusandfinancialrisk,soissuescouldbeprioritizedandresolvedbeforetheyimpactedcustomerdelivery.TheyalsousedAItosortthroughunstructureddatafromexternalnewsandsocialmediafeedstogetabetterunderstandingofmarketandsupplychangesthatcouldleadtodelays.Theresult?Clearvisibilitytomanagecomplexcustomerordersandsignificantlyimprovedorderdeliveryandquality.
“WhatyoujustsawAIdoinsecondstypicallytakesmehoursforeachquery...hugetimesavingsopportunity.”
DataAnalyticsLeader,Fortune500IndustrialAutomationCompany
BlockchainDrivesBigPharmaCompany’sCollaborationwithPartners
Aglobalpharmaceuticalcompanyhadlimitedvisibilityacrosstheirpartnerecosystem,whichledtoinefficienciesinmeetingcustomerdemand.Theyinteractedandworkedwithatleast20intermediariestoobtainandtransportsuppliesandproductstomeetcustomerdemand.Eventhoughblockchainisinitsinfancy,thecompanybeganexploringhowtoapplythetechnologytokeeptradingpartners
onthesamepageanddrivecollaboration.Theyestablishedasharedledgerforallpermissionedtradingpartnerstoprovideaccesstotransactionaldatainrealtime.TheyalsoplantoleverageIoT-basedshipmenttrackingdatatoallowpartnerstomonitorthelocationandconditionofshipments.Withablockchainnetwork,thepharmaceuticalcompanyanditstradingpartnerscanestablishashared,singleversionofthetruth–fromorderinceptionthroughfinaldelivery.Thecompanyexpectsthistoimprovecollaborationandeliminateblindspots,uncertaintyandinefficienciesacrosstheirpartnernetworkandsupplychain.
MasterLockUnlocksBusinessTransactionIntelligencewithAI
MasterLock,acompanythatdevelopsandmanufacturessecurityproducts,wantedtoprovideitsinternalbusinessuserswithself-serviceaccesstoreal-timedataabouttransactionstobettersupportcustomers,suppliersandfinanceprojects.ThecompanypartneredwithIBMtoimplementanAI-powered,BusinessTransactionIntelligencesolutioncombinedwiththeirIBMSterlingSupplyChainBusinessNetwork.Ultimately,MasterLocknotonlyachievedtheexpectedresultsofenablinguserstomoreeasilyfindandtrackbusinesstransactions,theywerealsoabletoquicklyidentifyandrectifyinefficienciesintechnicalEDIprocessingwithpartners.
“BusinessTransactionIntelligencewillallowourCustomerServiceandFinanceteamstoeasilytrackanorderfrominceptiontocash.Itwillallowthemtoperformtheirdutiesinamuchmoreefficientmanner.”
—ConnieRekau,EDIManager,TheMasterLockCompany
LenovoLeveragesAIandBlockchainforSupplyChainTransformation
Lenovo,aglobaltechnologyandmanufacturingleader,wantedtoestablishgreatervisibilityacrosssystemsanddatasourcestominimizedisruptionsandimprovecustomerordermanagement.TheywantedtouseAItoconnectdisparatesourcesofdataandgaingreaterinsightsintotopcustomers–andtocorrelatedatafromothersystemswiththeirordermanagementsystemstoimprovedeliveryandcustomersatisfaction.Injustsixweeks,IBMdemonstratedaproofofconceptforAIapplicationusingtheirowndata–andstarteddowntheroadtogreatervisibilityandreducingdisruptions.
“IBMSupplyChainInsightshelpsorganizationsleveragethepowerofArtificialIntelligencetogaingreatervisibilityandpredictiveinsightsacrossthesupplychain.Ultimately,thatvisibilityandinsightcanhelpdriveaction,efficiencyandincrementalrevenue.”
–BobbyBernard,GlobalProcurementandSupplyChainExecutive,Lenovo
AutomotiveManufacturerFocusesonCostReductions
Amajorautomotivemanufacturerwantedtoreduceinventorycostscausedbyhighsafetystocklevels.Toachievetheirgoal,theyneededgreaterdataaccuracyandbetterinsightintowhat’shappeningduringtransport.ByleveragingAIandIoTdatainshippingcontainers,theycannowpredictlatearrivalsbasedonrouteperformance,trends,carrierperformance,andweather.TheyalsousedAItoeffectivelymanagedataoverloadandgeneratesmartalertsbasedonsensitivitythresholds.WithAI,theyoptimizedinventorydowntotheshippingcontainerlevel,realizedfasterresolutionofeventsimpactingtimedeliveryofparts,improvedpredictionofdelays,andsignificantlyreducedneedforsafetystocks.
“WearespendinghundredsofmillionsonunnecessaryinventoryandseeAIasthebestpathtogeneratetheinsightstocreateaseamlessprocesstoeliminatewaste.”
SeniorSupplyChainExecutive,MajorAutomotiveManufacturer
IBMSterlingSupplyChainSolutionstoDriveVisibilityandManageDisruption
OursolutionsleveragethepowerofAIandblockchaintohelporganizationsarchitectforthefutureandbuildasmartersupplychainthat’smoreresilient,agileandcustomer-centric.
IBMSterlingSupplyChainInsightswithWatson
IBMSterlingSupplyChainInsightswithWatson(SCI)leveragesAIthatlearnsandunderstandssupplychaintoprovidemonitoring,visibilityandinsightsacrossyoursupplychain.WithSCI,organizationscanbeproactivelyalertedto,andbetterassessandmitigate,disruptionsandrisks.
SCIOperationsCenterwithSmartAlertsproactivelymonitorsandgovernsoperationswithspeedandagility–andprovidesconfigurablealertstocutthroughdataoverloadandpredictpotentialdisruptions.SCIResolutionRoomswithAskWatsonrecommendstherightteammemberstohelpresolvespecific
disruptions,andthenprovidesthatteamwiththerelevantinformation,updatesandinsightsneededtomitigatetheevent.DigitalPlaybooksareanorganizedbodyofknowledgeandbestpracticesbuiltovertimebasedonyourpastactivitycuratedbyWatson.Thisknowledgebasewillhelpyoutacklerecurringsupplychainchallengeswithgreaterefficiency.
SterlingSupplyChainBusinessNetwork
StreamlinecollaborationacrossyoursupplychainanddeliverAI-poweredB2BtransactionvisibilitytobusinessuserswithIBMSterlingSupplyChainBusinessNetwork(SCBN).Asingle,cloud-based,digitalbusinessnetwork,SCBNenhancescollaborationwithyourcustomers,suppliersandtradingpartnersbydigitizingandautomatingB2Btransactions,whileaccommodatingspecificbusinessrequirements,governmentregulationsandtechnicalcapabilities.
SCBNprovidesbusinessuserswiththeinsightsneededtomakefasterandmoreinformeddecisionsbyleveragingAItodeliverdeepsearchandvisibilityintoB2Btransactionlife-cycles,visualizetheentirelife-cycleofatransactioninreal-timeandincontext,ordrilldowntoseethegranulardetailofspecificdocuments.
IBMSterlingDeliveryTransactionIntelligence
IBMSterlingDeliveryTransactionIntelligenceisaportfolioofapplicationsthatbringsblockchaintotheSterlingSupplyChainBusinessNetwork.SterlingDeliveryTransactionIntelligencegivesyouasinglerecordoftruth,completewithtransparentimmutability,datarights,anaudittrail,permissionandprivacy,andasecurity-richenvironment.
SterlingDeliveryTransactionIntelligenceensuresthatalltheparticipantsinsupplychainprocessesstayinformedandconnectedoneventsandchangesinbusinesstransactionsfromordertodeliverywithoutcompromisingsecurityorconfidentiality.Withasingle,sharedviewofevents,partnerscanquicklyandeasilyresolveissuesandpotentialdisputes.
CopyrightIBMCorporation2019|IBMCorporation,Route100,Somers,NY10589|ProducedintheUnitedStatesofAmerica|October201
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