Companies have been undertaking value stream mapping of their supply chains for many years to determine where their raw materials come from and identify any potential points of failure in their supply chain. One executive explained that his company had developed a “scorecard” of its contracts, organizing them by age of contract, importance of the input to the final product, and history with the supplier. With this value mapping and contract prioritization, it becomes possible to “design out” reliance on niche suppliers in certain cases.
Emerging technologies such as digital twins can develop capabilities to run various simulations and assess multiple variables to determine where and how alternative materials or suppliers could be utilized. As companies continue to diversify their supplier base, the optimization process could become increasingly complex. The digital twin can help to identify underlying inefficiencies and bottlenecks and could assist in making an informed decision on selecting the desired supplier, right facilities, and transportation capabilities to achieve supply assurance.
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