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Perfect Delivery - order orchestration, adaptive logistics and trade compliance

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JP Doggett

Perfect Delivery - order orchestration, adaptive logistics and trade compliance
SupplyChainINTENT Virtual Boardroom Discussion 20/1/21
With Expert Input from Vikram Singla, Oracle

Discussion Summary

  1. Building blocks for digitally-enabled logistics platforms are:
    1. A dynamic operating model built around end-to-end processes rather than traditional silos
    2. Zero latency business processes with early event detection and rapid response
    3. Cloud-based infrastructure for continuous capability upgrades, integration / overlays of disparate systems and sensor data (packaged IT/OT)
    4. The ecosystem / value chain of partners and platforms
    5. Adapting skills and culture to new ways of working
    6. Becoming much more data-driven
  2. Perfect delivery can be unbundled into three key layers:
    1. Order orchestration: how to capture multiple order sources and have single view of supply so that tough decisions (e..g. which customers you are prepared to delay, which you must fulfil on time) can be optimised
    2. Adaptive transport & logistics: near real-time visibility on shipments, whether in-house or outsourced, and the impacts of disruption to ETAs
    3. Trade compliance and visibility: an area that is often overlooked as it’s not always easy to model the impact on the bottom line but should be key to determining which suppliers to work with and how
  3. Rather than try to replace what isn’t working, it’s often about putting a wrapper across these three areas. 

Key challenges discussed

  • Multiple applications and legacy systems within and between departments and partner entities in the supply chain: still some way to go but moving towards logistics technology platforms - analogous to app marketplaces for smartphones - where platform partners conform to common data standards and APIs which enable smoother exchange and integration of data;
  • Risks of betting on the ‘wrong’ technology: there is a reticence about going too far in one direction in case the industry standards move in a different direction resulting in premature obsolescence. A cloud-based approach reduces that risk by minimising sunk costs & switching costs whilst investing in integration of data as a foundation for future applications is very likely to be worthwhile;
  • Customisation investments: all participants recognised the substantial work that often goes into customising aspects of ERPs which can then impose substantial costs to replicate them when moving to newer versions if those capabilities have not been incorporated into the standard product. A platform or app-based technology ecosystem should enable more granular and continuous capability upgrades and opens opportunities for specialists to plug capability gaps, much as a marketplace of apps does.

Case studies and technology applications covered are available in the attached pdf with additional materials here:


https://www.oracle.com/product-navigator/?product=supply chain %26 manufacturing (scm):logistics

If you are interested in any of these areas and would like to discuss them further with your counterparts or subject matter experts, we’re very happy to put you in touch.

210114 Perfect Delivery Oracle Intent roundtable discussion v2.pdf

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