Smart Supply Chains

Smart Supply Chains is an intelligent system of supply chain management.

A system is intended for increase in level of service of clients: for ensuring satisfaction of demand in sales points, the timely product delivery from warehouses in outlets, reduction of storage costs and transportation, formation of the optimal order for production.

A system plans the movement of products in a supply network so that the general profit of network was as much as possible, providing at the same time fast reaction to all changes and, as a result, permanent existence of the relevant action plan focused on extraction of a maximum from the current and assumed in the future situation.

Representation of communications of Smart Supply Chains (2014)

The prototype of a system went a research to LEGO companies on real data of retail network (supply management more than 600 types of goods) in the territory of the USA. The received results of experiments show that application of a system will allow to increase profit by 18-25% due to transition to economy of real time.

The system of dynamic balancing of production and energy flows in the power supply network is developed for reducing costs for development and transportation of the electric power in the conditions of the changing demand.

Specific Features

• Customer service quality improvement – 25%
• Quality improvement of schedules (finding of more profitable solutions) – 18%
• Flexibility of management (possibility of manual adjustment of schedules)
• Warning of risks of failure to follow orders
• Global assessment of the situation (taking into account parts and internal interactions in network)
• Transparency and availability of information
• Decrease in dependence on a human factor
• Decrease in labor input of work of the analyst/manager, motivation of creativity

The considered restrictions

• Existence of a warehouse
• Quarantine storage of finished goods
• Specific method of production
• Calendar (working days and hours)
• The fixed production
• The fixed transportation
• Time and cost of transportation and production
• Preferences of the customer
• Location of the customer and time of execution of the order
• Production restriction
• Transportation restriction

Specifics

• Instant processing of changes and replanning
• Optimization on the basis of the level of service and profit
• Setup of a planning logic
• Continuous improvement of the plan
• Self-training of a system
• Integration with external systems
• Web interface