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What data are you willing to share in the supply chain?

What data are you willing to share in the supply chain?

In the SCARCE II project, a demonstrator will be developed to show how small and medium-sized enterprises and associated value flows can increase efficiency, competitiveness, sustainability and internal cooperation through digitization. The goal is to show the value of a new digital solution. The participants in the SCARCE II project are part of a supply chain linked to Scania and in a workshop on 4 May 2021, data management was discussed in a little more depth.

The workshop included representatives from the value chain via the subcontractors Parker Hannifin Manufacturing Sweden and Bror Tonsjö, EQ-pack which is a packaging supplier, the technology supplier Siemens and researchers from KTH, Chalmers and RISE. The following issues were discussed: If you got all the data you want, how would it have been easier for you? What value had been created? Which KPIs? To achieve this, which conditions / data are absolutely crucial? The discussion at the workshop was greatly affected by the effects of the pandemic, which, for example, concern how companies deal with component shortages and capacity increases.

 

Important with a strategy

It is important to have a strategy for how data and information are shared.
– We have a large amount of data and therefore it is mostly about how it is packaged, visualized and how to access it; and what you need, says Lena André from Parker Hannifin in Trollhättan.
It is about what data is to be shared and with whom. Here, a strategy is needed, for example, for how everything should be integrated and which agreements must be written. Everyone agrees that you may not share everything with everyone.

– It is not at all obvious that you get profits automatically just because you have access to a lot of data. We need knowledge in how to do this in the best way, for example some people want different amounts of information, says Clas Tengström, CEO of Bror Tonsjö and adds:

– When we did a study, we found out that those who work weekends want more information, but those who work during the day want less information. It’s more about it being the right information.

It is also easy to misuse data, which means that you have to be careful about which data is shared and with whom.

– It is important to respect each other’s data, says Johan Tjernell, CEO of EQ pack.

 

Gains with data sharing

In summary, the group sees the following benefits of data sharing:

  • Facilitates when we have problems – We really only need data when there are problems. The important thing there is how it is presented.
  • Resource planning – In the short term, we can quickly re-plan and in the longer term may be able to make more of structural changes in the flow. An example of resource-efficient allocation is that, for example, you use the surface and the business a little better; or use the time in a better way simply.
  • Transparency – We can know exactly where our deliveries are somewhere.
  • Reduce / change articles – We can see how many articles we have in operation and reduce / change it if necessary.

 

Which KPIs should we measure?

Today, the KPIs needed are measured. On the other hand, we can create new KPIs, for example through maintenance and, for example, vibration. Maybe logistics management is the new thing, can we make more money from it? It’s a balancing act. Maybe there will be new KPIs about data sets and AI in the future – for example to say how efficient or resource efficient we are per day? Another example when it comes to designing products is that there may be new KPIs linked to environmental work.

– We optimize our delivery to customers today, but we also want to be part of optimizing customers’ delivery precision. The latter would then be a new KPI, which is actually the most important KPI, says Elin Nordmark from Siemens.

In the short term, KPIs are about productivity, but then it can lead to improved flexibility in the supply chain and also responsiveness. First we want data to look at productivity, but then flexibility and our ability to be responsive to a change is relevant. In the case of resource allocation, for example, there are some classic waste that can be talked about, for example, surface area. How do we measure and optimize it? It can be linked to the number of items in stock, how staff experience the work, etc.

 

Prerequisites for success

To achieve the goal, it is required that the companies have control over their capacity, that there is an information strategy and that there is knowledge in the area.

– It is crucial to keep track of your capacity. In assembly / production, we have pretty good control, but how can we be affected if we go up 10 percent in capacity, but it is not always so obvious. If we look at productivity, we are also good at measuring this, but how do we measure it part by part? And how should we measure if we have the right capacity? It is therefore good with delivery plans and a challenge with material handling, says Pernilla Höög from Parker Hannifin.

But more knowledge is needed in the field. Even if we have data, we need to know what to do when we receive a certain type of information. How should we as a company act if I know that my customer has a disruption in the order situation?

 

Facts about SCARCE II

In SCARCE II, a demonstrator will be developed to show how SMEs and associated value streams can increase efficiency, competitiveness, sustainability and internal collaboration through digitization. The goal is to show the value of a new digital solution. Read more here.

In previous workshops, the current situation and future situation have been discussed and two pilots have been identified for the autumn of 2021. Read more here.