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Advanced Digital Technology: Making A Smarter Supply Chain

Featuring John Caltabiano, Jabil Vice President of Supply Chain

When it comes to the challenges of managing today’s global supply chains, the phrase “drinking from a fire hose” comes to mind. The Internet of Things (IoT) – that rapidly expanding, sensor-laden network of man, machine and devices – promises to fundamentally reshape supply chain management by producing an exponentially growing stream of real-time data. Gartner suggests that by 2020 there will be more than 20 billion connected devices collecting reams of data, while the amount of data collected is predicted to double every two years.

Until recently, the technology simply didn’t exist to effectively harness and tame this rising tide. But that is changing now – and just in time, because supply chains are becoming more global and complex every day. Today, in a bid to deliver more value for their companies, supply chain professionals are racing to adopt new end-to-end digital solutions.

Technology Comes of Age

Customers can increasingly get what they want, when they want it and how they want it. This rise of mass customization, combined with collapsing product lifecycles, make it clear that in this digital economy, firms must operate at the speed of the Internet to meet their customer's’ needs, or risk being left behind. This requires a faster and more agile supply chain powered by cloud and mobile. Cloud-based apps provide the ability to do real-time updates, and offer faster, cheaper scalability. Increased mobility effectively allows employees and team members to do their jobs anytime anywhere. And advancements in analytics combined with years of practitioner domain expertise yield better decision-making.

While cloud computing, mobile technologies and data analytics have all been around for some time, but they simply had not matured to a level that allowed for the type of efficient integration necessary to address the growing data explosion from supply chains. But now these technologies have evolved, the cost has plummeted and the industry is poised for a major digital transformation.

John Caltabiano, Jabil VP of Supply Chain

“Cloud computing supply chain solutions are giving companies the ability to make investments in this type of tool set without all the capital requirements that were required in the past,” said John Caltabiano, Vice President of Supply Chain. “This allows many companies to get in on the action and start using digital supply chain tools making this one of the most exciting times to be a supply chain professional."

Making Better Decisions With Data

Access to real-time, actionable data helps companies make more intelligent and timely decisions based on real-world conditions, not to mention reducing risk in real-time with SKU-level data that can inform and drive improved performance. The real value comes in the effective application of analytics – predictive, prescriptive, cognitive and complex event processing – allowing you to do things that simply weren't possible before.

Consider, for example, that you have suppliers who manufacture critical parts for you in an area of the world that is hit by an extreme weather event, or who perhaps suffer an outage from an explosion or a port strike. It is vital to know whose products those suppliers’ parts go into, how many of them you have, how many are en route, and if or how your customers will be impacted. With visibility inside the supply chain ecosystem, you can determine these facts in minutes or hours rather than the days it may have taken in the past.

A 2015 survey of 315 supply chain managers conducted by Dimensional Research revealed that only 70 percent of the respondents said they had real-time status updates for less than half of their supply chain. Worse, 82 percent said it would take days to understand the impact of an extreme global weather event. The costs of such blind spots can be staggering.

The Power of Jabil inControl 

Companies today increasingly need end-to-end visibility into every aspect of the supply chain to quickly detect changes, disruptions and opportunities in real-time. And legacy practices are proving to be insufficient to meet the pace of growth and change required. Intelligent, interconnected new tools are needed.

“A key tool in mastering the flow of information is Jabil inControl™, a business intelligence and advanced data analytics platform that brings improved visibility and transparency to the global supply chain,” said Caltabiano. “It continuously analyzes operational data and performance to automatically identify, quantify and prioritize actions to drive supply chain performance improvement. Jabil itself has reduced its inventory by more than $300 million by using this proprietary technology.”

The efficacy of a platform like Jabil inControl™ is contingent on the quality and quantity of the data. Without a sufficient sample size, improvement analytics can feel toothless at best and confounding at worst. Because Jabil partners with many of the world's premier brands, inControl leverages a rich stream of data that spans multiple companies and industries. This breadth and depth provides the foundation for more accurate prescriptive and predictive analytics – giving supply chain practitioners the confidence to make faster and better decisions.  

These new digital solutions, along with years of domain expertise will give rise to ultra efficient supply chains that deliver superior value to customers. Early adopters of intelligent digital supply chain solutions are already reaping the benefits and pulling away from their competitors. With inControl, Jabil is enabling its customers to join the movement and begin their digital supply chain journey.


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