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Design & Deployment Concept
SUPPLY CHAIN CONTROL TOWER
Data Labs India Supply Chain Practice : Article series
Author
Shaik Abdul Khadar
President
Data Labs India Solutions
Shaik is a strategy execution, supply chain management,
performance management, and organizational transformation
specialist with 26 years of experience; enable senior leaders to
execute their strategies consistently. His Key expertise include
designing and implementing supply chain planning solutions,
digital supply chain transformations, supply chain visibility and
control tower, blockchain development, ERP implementation
and performance management solutions. Expert in designing
and implementing systems integration of ERP, EPM, BI, data
warehousing, plant control systems, RFID, supply chain
solutions, fleet management solutions etc.,
Shaik has extensive experience in agri-food, construction,
poultry, process and discrete manufacturing, automotive,
mining, government, shipping, rail and road transportation, and
retail.
www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
Shaik can be reached to sak@datalabsindia.com
1
TABLE OF CONTENTS
Supply chain control tower overview 2
Components of control tower
3
Approach for implementation 10
Challenges and risks in implementation 11
Supply chain control tower overview:
Let us start with a concept of control tower, “supply chain control tower is a central hub with the required technology,
organization and processes to capture and use supply chain data to provide enhanced visibility for short and long term decision
making that is aligned with strategic objectives, provide analytics and decision making facility, and execute processes with external
and internal collaboration.
Supply chain operations are becoming very complex as the customer service expectations are increasing day by day. Introduction
of new technology solutions to manage supply chain operations is a mandate now. Supply chain collaboration internally and
externally becomes vital to manage supply operations efficiently. Visibility becomes necessity to the supply chain managers to
manage operations. However building end-to-end supply chain visibility needs lot of time and efforts, the priority becomes the
key. Control tower should not be confused with visibility initiative. Control tower covers the high priority visibility topics not end-
to-end visibility.
Based on the selection of supply chain part for developing control tower, we can call different names for control towers such as
“internal control tower”, which covers internal part of the organization and business process improvement; “ vertical control
tower” covers optimizations production or transportation nodes of one particular supply chain; “horizontal control tower”
bundling of materials and flows from comparable chains; “cross chain” covers dynamic optimization of different nodes from
multiple chains. For current discussion in this article, we shall assume a vertical control tower.
Supply chain control tower bring three key distinct benefits; visibility, analytics and decision making, and process orchestration.
2www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
Components of control tower:
The following are five components to be considered to build successful control tower.
A. Outcomes and expectations
B. Supply chain
C. Key processes
D. Technology architecture
E. Integration platform
5 . Canvas Brief 3www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
Top control tower solutions source(Nucleus Research)
6 . Canvas Brief
A.Outcomes and expectations:
We have to identify and prioritize features required for control tower to solve challenges of supply chain. Below list shows features and
benefits expected from well designed and deployed control tower solution. Refer to picture on page 8.
Notifications, Alerts & Exceptions: Any supply chain manager will be glad to know proper notifications, alerts and exceptions based on
thresholds timely. The examples could be delays of production at supplier site, delays in shipment arrival, advance notification of time of
shipment arrival to get capacity ready for inbound, delay in customer order fulfilment, capacity shortages in manufacturing. Control tower
should be able to throw exceptions for any possible disturbance in supply chain to avoid problems with service levels.
Simulation: We will be more excited to perform what-if simulations if system can support. Well designed and deployed control tower can
provide what-if scenario based on predictive and prescriptive analytics, and machine learning.
Collaboration: In current complex IT systems landscape, supply chain professionals need to operate multiple systems for different
purposes. We need to collaborate with supply chain members in an integrated way without losing the sight. Control tower should be able
to provide us the collaboration feature where the key actions can be executed. Managers will be glad to have approval option and revise
the plans on the go.
Capacity: As the advance notifications and alerts take place for all supply chain events. The capacity planning should be done in an
integrated way. For example, the resources required for inbound operations for receiving a large shipments from sea cargo. The capacity
planning facility gives supply chain managers to help them to allocate resources optimally which can save costs.
Performance Dashboards: Well defined and updated dashboards are the primary requirement of any control tower. The key performance
indicators are displayed through dashboards in alignment with strategy. We need to identify and define KPIs to be displayed irrespective of
constraints. This will be come basis for designing control tower.
People: The control tower needs to be operated from supply chain professionals who understand the entire supply chain operations and
able to collaborate with all people involved in supply chain orchestration. Identifying and training control tower operators is the key to
make control tower initiative a success. The organization structure needs to be adjusted to include these roles.
4www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
B. Supply chain:
Once we define the outcomes and expectations of control tower, the first step is to
understand the supply chain infrastructure and structural capabilities, and supply
chain strategy. We need to review all supply chain internal and external members
and their operations. This will help us to identify key areas of supply chain where
control tower can add value, for example what are the weak links and key pain
points. If there is any alignment gap in supply chain strategy, that has to be
identified upfront and addressed to the leadership team.
We usually start with high level assessment of supply chain performance to quickly
understand the operations. To make sure we don’t miss any key point, we
recommend to use SCOR framework to understand end to end supply chain
processes, like plan-source-make-delivery-return.
5www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
8 . Canvas Brief 6www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
9 . Canvas Brief 7www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
C. Key Processes:
We need to identify key supply chain business processes which are influenced by control tower
initiative. Priority business process performance is critical and hence the control tower
building should be completely aligned with the business process orchestration. Usually the ERP
implementation once completed is very hard to modify. Introducing control tower may cause
some update on the process such as approval or re-planning features. This is important step
where the business process owners should be involved and their expectations with control
tower should be clearly understood. You may find some resistance to change from few
business users. If the business process is performed through multiple systems, then it gives
clear understanding how the data is flowing. Accordingly data structures and interface
requirements for control tower initiative can be designed.
The supply chain visibility is the key part of control tower function. The visibility requirements
and priority should be defined while reviewing business processes. We also need to
understand what we prefer to predict in advance based on the data assets available. This is
very important exercise which helps to go to next step of working on systems and data
integrations.
10 . Canvas Brief 8www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
D. Systems Landscape:
This is the complex step where all systems and data assets are thoroughly reviewed. The core data comes
through ERP system. If ERP implementation is done completely then majority of data inputs comes from
here and all tier 1 and tier 2 ERPs provide very flexible data interface feature (APIs).
As defined in earlier step of reviewing key business processes, all systems involved in business process
execution need to be reviewed. The following are possible systems which needs integrated with control
tower.
• Enterprise Resource Planning (ERP)
• Customer Relationship Management (CRM)
• Supplier Relationship Management (SRM)
• Production Control Systems
• IT systems of Partners ( Logistics providers, Sub-contractors, Key vendors and customers etc.,)
• Data Warehousing and BI systems
• Supply Chain Planning solutions
• Performance Management solutions
• IoT devices such as RFID, barcodes, sensors etc.
Designing the data structures is very critical step in designing and deploying control tower solution. The
data structures need to be defined considering current requirements and future requirements. As the
systems interfaces development is complicated considering the upgrades, resource requirements, and
support from technology partners, we need to design the data structures as comprehensive as possible.
E. Integration Platform:
Selecting right integration platform to build control tower is very important stage. Having defined
the data structures, selecting right tool becomes easy. There are several platforms available for
integration and we can choose the technology based on alignment with IT strategy.
We need to consider following points while selecting the integration platform.
• Data acquisition
• Device management
• Data storage and persistence
• Multi-enterprise network
• Data security and access features
Before we talk about approach for control tower implementation, let us see few benefits expected.
• Improve operational performance by optimizing each order flow across supply chain, carriers,
and outsourced partners.
• Create best-in-class customer service with on-time and right-cost deliveries.
• Reduce inventory across supply chain through visibility and optimized order flow.
• Lower excess penalties for expedition, demurrage, detention etc., through visibility and alerts
to critical milestones.
• Gain better control and visibility of outsourced partners.
• Predict uncertainties through analytics and data assets.
9www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
12 . Canvas Brief 10www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
Weshalldiscussmoredetailsoftheapproachandadetailedprojectplaninthenextepisode.
ApproachforImplementation
Astherearemanydifferenttasksrequiredtobedonetodevelopeffectivecontroltower,we
needtofollowastructureapproach.Thefollowingfigureshowshighlevelapproach.
13
Challenges and Key Risks in the
Implementation:
The following are risks involved in the control tower building initiative.
• We need people to operate control tower. Without right people, the control
tower becomes a dashboard with nice reports and does help to realize the
benefits. Failure to put right people is the biggest risk.
• No single technology covers the entire control tower requirements. You need to
select multiple technologies with proper alignment to ensure maintainability and
reduce costs of upgrades.
• Hire an external consultant while defining scope to support your internal supply
chain team. Otherwise you may lose sight from an outsider view and sub-optimize
processes.
• Make sure the control tower scope and modifications are informed to current
ongoing IT initiatives. Reduce rework by aligning on-going initiatives with control
tower initiative.
• Don’t overdo on visibility part. You may lose track while defining end-to-end
visibility and not focusing on priorities.
• Cognitive technology can bring lot of value in unearthing hidden patterns and
predicting uncertainties. Make sure that the solution selected has this feature.
• Building data flow integration, dash boards, and collaboration is the key part of the
solution development. Make sure that the implementer and solution provider
take care of business continuity and avoid risk of losing talent. Knowledge transfer
to internal team is a critical task. Don’t underestimate it.
11www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
Copyright © 2018.
Data labs India and its logo(s) are trademarks of Data labs India Pvt Ltd. All rights
reserved. All other logo(s) used are trademarks of their respective owners
AboutData Labs India
Data Labs India is an information technology Solutions Company
helps organizations to solve complex problems in digital supply
chain, performance management, integrated business planning,
and internet of things, e-commerce, business intelligence, and
business analytics.
www.datalabsindia.com
Corporate Office India :
Data Labs India Solutions Pvt Ltd
28-5-154-2, APHB Colony Main Road,
Anantapur – 515001
Andhra pradesh, INDIA
Phone : +91 08554 248844 For More Details Contact:
Info@datalabsindia.com
Supply chain Planning
Supply Chain Optimization,
Analytics & Visibility
Cognitive Supply chains
• Sales & operations planning
• Forecasting & demand planning
• Transportation optimization
• Master scheduling & Capacity Planning
• Supply Chain Control Tower
• Master planning & Response Intelligence
• Supply chain Collaboration & Visibility
• Transportation & Network Optimization
• Vehicle Route Planning& Facility
Location Optimization
• Production Planning & Scheduling
• Procurement Optimization
• Dispatch Planning & Optimization
• Demand Planning
• Supply Chain Analytics
• Supply chain optimization
• B2B Collaboration
(Supply Chain Business Network)
• Order Management & Fulfillment
DLI SUPPLY CHAIN SERVICES
Our offices:
KSA– USA - INDIA

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Supply Chain Control Tower - Design & Deployment Concept

  • 1. Design & Deployment Concept SUPPLY CHAIN CONTROL TOWER Data Labs India Supply Chain Practice : Article series
  • 2. Author Shaik Abdul Khadar President Data Labs India Solutions Shaik is a strategy execution, supply chain management, performance management, and organizational transformation specialist with 26 years of experience; enable senior leaders to execute their strategies consistently. His Key expertise include designing and implementing supply chain planning solutions, digital supply chain transformations, supply chain visibility and control tower, blockchain development, ERP implementation and performance management solutions. Expert in designing and implementing systems integration of ERP, EPM, BI, data warehousing, plant control systems, RFID, supply chain solutions, fleet management solutions etc., Shaik has extensive experience in agri-food, construction, poultry, process and discrete manufacturing, automotive, mining, government, shipping, rail and road transportation, and retail. www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd. Shaik can be reached to sak@datalabsindia.com
  • 3. 1 TABLE OF CONTENTS Supply chain control tower overview 2 Components of control tower 3 Approach for implementation 10 Challenges and risks in implementation 11
  • 4. Supply chain control tower overview: Let us start with a concept of control tower, “supply chain control tower is a central hub with the required technology, organization and processes to capture and use supply chain data to provide enhanced visibility for short and long term decision making that is aligned with strategic objectives, provide analytics and decision making facility, and execute processes with external and internal collaboration. Supply chain operations are becoming very complex as the customer service expectations are increasing day by day. Introduction of new technology solutions to manage supply chain operations is a mandate now. Supply chain collaboration internally and externally becomes vital to manage supply operations efficiently. Visibility becomes necessity to the supply chain managers to manage operations. However building end-to-end supply chain visibility needs lot of time and efforts, the priority becomes the key. Control tower should not be confused with visibility initiative. Control tower covers the high priority visibility topics not end- to-end visibility. Based on the selection of supply chain part for developing control tower, we can call different names for control towers such as “internal control tower”, which covers internal part of the organization and business process improvement; “ vertical control tower” covers optimizations production or transportation nodes of one particular supply chain; “horizontal control tower” bundling of materials and flows from comparable chains; “cross chain” covers dynamic optimization of different nodes from multiple chains. For current discussion in this article, we shall assume a vertical control tower. Supply chain control tower bring three key distinct benefits; visibility, analytics and decision making, and process orchestration. 2www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
  • 5. Components of control tower: The following are five components to be considered to build successful control tower. A. Outcomes and expectations B. Supply chain C. Key processes D. Technology architecture E. Integration platform 5 . Canvas Brief 3www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd. Top control tower solutions source(Nucleus Research)
  • 6. 6 . Canvas Brief A.Outcomes and expectations: We have to identify and prioritize features required for control tower to solve challenges of supply chain. Below list shows features and benefits expected from well designed and deployed control tower solution. Refer to picture on page 8. Notifications, Alerts & Exceptions: Any supply chain manager will be glad to know proper notifications, alerts and exceptions based on thresholds timely. The examples could be delays of production at supplier site, delays in shipment arrival, advance notification of time of shipment arrival to get capacity ready for inbound, delay in customer order fulfilment, capacity shortages in manufacturing. Control tower should be able to throw exceptions for any possible disturbance in supply chain to avoid problems with service levels. Simulation: We will be more excited to perform what-if simulations if system can support. Well designed and deployed control tower can provide what-if scenario based on predictive and prescriptive analytics, and machine learning. Collaboration: In current complex IT systems landscape, supply chain professionals need to operate multiple systems for different purposes. We need to collaborate with supply chain members in an integrated way without losing the sight. Control tower should be able to provide us the collaboration feature where the key actions can be executed. Managers will be glad to have approval option and revise the plans on the go. Capacity: As the advance notifications and alerts take place for all supply chain events. The capacity planning should be done in an integrated way. For example, the resources required for inbound operations for receiving a large shipments from sea cargo. The capacity planning facility gives supply chain managers to help them to allocate resources optimally which can save costs. Performance Dashboards: Well defined and updated dashboards are the primary requirement of any control tower. The key performance indicators are displayed through dashboards in alignment with strategy. We need to identify and define KPIs to be displayed irrespective of constraints. This will be come basis for designing control tower. People: The control tower needs to be operated from supply chain professionals who understand the entire supply chain operations and able to collaborate with all people involved in supply chain orchestration. Identifying and training control tower operators is the key to make control tower initiative a success. The organization structure needs to be adjusted to include these roles. 4www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
  • 7. B. Supply chain: Once we define the outcomes and expectations of control tower, the first step is to understand the supply chain infrastructure and structural capabilities, and supply chain strategy. We need to review all supply chain internal and external members and their operations. This will help us to identify key areas of supply chain where control tower can add value, for example what are the weak links and key pain points. If there is any alignment gap in supply chain strategy, that has to be identified upfront and addressed to the leadership team. We usually start with high level assessment of supply chain performance to quickly understand the operations. To make sure we don’t miss any key point, we recommend to use SCOR framework to understand end to end supply chain processes, like plan-source-make-delivery-return. 5www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
  • 8. 8 . Canvas Brief 6www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
  • 9. 9 . Canvas Brief 7www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd. C. Key Processes: We need to identify key supply chain business processes which are influenced by control tower initiative. Priority business process performance is critical and hence the control tower building should be completely aligned with the business process orchestration. Usually the ERP implementation once completed is very hard to modify. Introducing control tower may cause some update on the process such as approval or re-planning features. This is important step where the business process owners should be involved and their expectations with control tower should be clearly understood. You may find some resistance to change from few business users. If the business process is performed through multiple systems, then it gives clear understanding how the data is flowing. Accordingly data structures and interface requirements for control tower initiative can be designed. The supply chain visibility is the key part of control tower function. The visibility requirements and priority should be defined while reviewing business processes. We also need to understand what we prefer to predict in advance based on the data assets available. This is very important exercise which helps to go to next step of working on systems and data integrations.
  • 10. 10 . Canvas Brief 8www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd. D. Systems Landscape: This is the complex step where all systems and data assets are thoroughly reviewed. The core data comes through ERP system. If ERP implementation is done completely then majority of data inputs comes from here and all tier 1 and tier 2 ERPs provide very flexible data interface feature (APIs). As defined in earlier step of reviewing key business processes, all systems involved in business process execution need to be reviewed. The following are possible systems which needs integrated with control tower. • Enterprise Resource Planning (ERP) • Customer Relationship Management (CRM) • Supplier Relationship Management (SRM) • Production Control Systems • IT systems of Partners ( Logistics providers, Sub-contractors, Key vendors and customers etc.,) • Data Warehousing and BI systems • Supply Chain Planning solutions • Performance Management solutions • IoT devices such as RFID, barcodes, sensors etc. Designing the data structures is very critical step in designing and deploying control tower solution. The data structures need to be defined considering current requirements and future requirements. As the systems interfaces development is complicated considering the upgrades, resource requirements, and support from technology partners, we need to design the data structures as comprehensive as possible.
  • 11. E. Integration Platform: Selecting right integration platform to build control tower is very important stage. Having defined the data structures, selecting right tool becomes easy. There are several platforms available for integration and we can choose the technology based on alignment with IT strategy. We need to consider following points while selecting the integration platform. • Data acquisition • Device management • Data storage and persistence • Multi-enterprise network • Data security and access features Before we talk about approach for control tower implementation, let us see few benefits expected. • Improve operational performance by optimizing each order flow across supply chain, carriers, and outsourced partners. • Create best-in-class customer service with on-time and right-cost deliveries. • Reduce inventory across supply chain through visibility and optimized order flow. • Lower excess penalties for expedition, demurrage, detention etc., through visibility and alerts to critical milestones. • Gain better control and visibility of outsourced partners. • Predict uncertainties through analytics and data assets. 9www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
  • 12. 12 . Canvas Brief 10www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd. Weshalldiscussmoredetailsoftheapproachandadetailedprojectplaninthenextepisode. ApproachforImplementation Astherearemanydifferenttasksrequiredtobedonetodevelopeffectivecontroltower,we needtofollowastructureapproach.Thefollowingfigureshowshighlevelapproach.
  • 13. 13 Challenges and Key Risks in the Implementation: The following are risks involved in the control tower building initiative. • We need people to operate control tower. Without right people, the control tower becomes a dashboard with nice reports and does help to realize the benefits. Failure to put right people is the biggest risk. • No single technology covers the entire control tower requirements. You need to select multiple technologies with proper alignment to ensure maintainability and reduce costs of upgrades. • Hire an external consultant while defining scope to support your internal supply chain team. Otherwise you may lose sight from an outsider view and sub-optimize processes. • Make sure the control tower scope and modifications are informed to current ongoing IT initiatives. Reduce rework by aligning on-going initiatives with control tower initiative. • Don’t overdo on visibility part. You may lose track while defining end-to-end visibility and not focusing on priorities. • Cognitive technology can bring lot of value in unearthing hidden patterns and predicting uncertainties. Make sure that the solution selected has this feature. • Building data flow integration, dash boards, and collaboration is the key part of the solution development. Make sure that the implementer and solution provider take care of business continuity and avoid risk of losing talent. Knowledge transfer to internal team is a critical task. Don’t underestimate it. 11www.datalabsindia.comCopyright@2018 Data Labs India Solutions Pvt Ltd.
  • 14. Copyright © 2018. Data labs India and its logo(s) are trademarks of Data labs India Pvt Ltd. All rights reserved. All other logo(s) used are trademarks of their respective owners AboutData Labs India Data Labs India is an information technology Solutions Company helps organizations to solve complex problems in digital supply chain, performance management, integrated business planning, and internet of things, e-commerce, business intelligence, and business analytics. www.datalabsindia.com Corporate Office India : Data Labs India Solutions Pvt Ltd 28-5-154-2, APHB Colony Main Road, Anantapur – 515001 Andhra pradesh, INDIA Phone : +91 08554 248844 For More Details Contact: Info@datalabsindia.com Supply chain Planning Supply Chain Optimization, Analytics & Visibility Cognitive Supply chains • Sales & operations planning • Forecasting & demand planning • Transportation optimization • Master scheduling & Capacity Planning • Supply Chain Control Tower • Master planning & Response Intelligence • Supply chain Collaboration & Visibility • Transportation & Network Optimization • Vehicle Route Planning& Facility Location Optimization • Production Planning & Scheduling • Procurement Optimization • Dispatch Planning & Optimization • Demand Planning • Supply Chain Analytics • Supply chain optimization • B2B Collaboration (Supply Chain Business Network) • Order Management & Fulfillment DLI SUPPLY CHAIN SERVICES Our offices: KSA– USA - INDIA