Why to the agro-industrial companies to tsifrovizirovat supply chains? TADetails

Digital transformation changed work with deliveries

For the companies of agro-industrial complex one of the most important issues — quality of their products. In the analog world confirmation of this quality and certification of all stages required considerable costs and paperwork. Digitalization gave to the industry the chance to collect data, so — to increase product quality and customer confidence that leads to increase in demand and stability of sales.

The main plus of implementation of digital model is that it allows to understand in details origin and to monitor movement of products. In addition to obvious pluses, it guarantees protection against a counterfeit and excludes sales opportunity unfair exporters. Besides, now there are mechanisms of quality control and expiration dates on all chain of production of finished goods, since grain cultivation.

As a result products enjoy great confidence of customers, consumers and regulatory authorities. Even if at any stage something went wrong — the compromised products can be localized and withdrawn easily. Destroy all batch as it quite often had to be done earlier, it is not obligatory now.

Supply chain management — managerial methodology. At the dotsifrovy level it was possible only in vertically integrated holdings. Production was controlled from the uniform center there. Now optimization of the integrated process became possible. Links of a chain are coordinated up to formation of the works order to the line.

How to plan deliveries in real time

Effective operational planning of deliveries — a serious problem as requests from the sales directions are subject to daily adjustments, and it can turn back serious problems and financial losses for the companies. Transition to planning in real time can solve it. The Cherkizovo Group — one of the leading Russian manufacturers of meat products faced a similar task. The holding considers the possibility of radical changes which initiator were business divisions and IT service.

At the first stage it is going to develop detailed methodology of supply chain management. The purposes of such approach are clear: daily demand from retail chain stores is limited to production opportunities, promo and plans of shops, and production is limited both to capacities, and business cycle of procurement of products — of a month before half a year depending on its type. Balance long-term indicators and restrictions with operational demand is an uncommon task.

Creation of uniform standards for key indicators will become the second step, and accounting and information exchange between divisions will transfer to the unified forms and algorithms, will develop necessary procedures and regulations.

"At the second stage of reengineering it will be necessary to align master data, to implement the automated solution, to provide training of the existing specialists and to find new" — Konstantin Melnikov, the Head of Department of ERP of the Cherkizovo Group shares plans.

The plan of digitalization assumes creation of a single system of descriptions of products — quantitative and qualitative — and a uniform information landscape which would allow to construct the integrated planning taking into account different IT products of the company: from SAP to 1C.

"The digital schedule system covering all chain of purchase, production and logistics and sale should become a result of this work. It will allow participants to plan in real time production and deliveries depending on mathematical models of demand and from dynamics of implementation, thereby raising Service Level and Service Code of clients" — Konstantin Melnikov concludes.

What will help to improve product quality?

End-to-end quality control. Again example from practice: the directorate of one of leading manufacturers of dairy products faced a problem of control of work of the management of farms and loss minimization from possible infections. As the solution in the company independently developed and implemented a digital control system of origin of products.

How does it work? The identification code is attached to each capacity with raw materials. It is read out in a point of acceptance of raw materials and fixed on packaging of end products. This simple system allows to trace when and from what cow milk was received. Thanks to it the company management can not only control quality and define places of emergence of problems, but also is more flexible manage production volumes.

Besides, implementation of a digital system gave the chance to eliminate abuses of farms and external suppliers of milk. As you know, milk yield — this inexhaustible field for manipulations: milk 10 cows, but hand over milk, as with 30, mixing dairy powder or milk of small producers.

Eventually digitalization led to quality improvement that, in turn, increased demand for 20% and consumer confidence.

As using technologies to simplify export

Now several Russian dairy companies test a system which will provide almost automatic green channel at customs. The benefit is obvious: milk will be exported without delays.

All production information is marked on special model which is approved with customs authorities. The coding with information on origin is caused on tanks with raw materials. These codes are fixed in a digital block of refrigerators and read out by customs officers who instantly see data on milk: farm, area, region, state of health of animals. The procedure of issue of permissions is reduced from several to several o'clock minutes.

How to optimize production strategy

An important role is played by economic modeling. In one of the pig-breeding companies reports showed systematic underproduction of fodder grain. At the same time the director of the enterprise for its production got awards for high profitability.

It turned out that it increased number of acreage for expensive brewing grain. Having sold it, it was always possible to buy in addition cheaper fodder grain in the market and to get profit.

This example pushed the company to development of the analytical module which allowed to calculate precisely production volumes, the grain cultivation cost, the forecast prices of fodder grain and grain for production of beer.

At the expense of what to reduce management costs

Here the end-to-end planning integrating several companies will help. Again example from practice: the Moscow meat-processing holding and Moscow region farmers work in the system of operational planning which is implemented based on the digital platform. Farmers in real time see needs of the customer, and the customer obtains information on an adherence to deadlines. A system fixes each supply of compound feeds and monitors existence of quality certificates.

Such approach allowed to refuse excess divisions. The company actually turned from holding into more flexible and economic system of the enterprises connected by the digital platform. Transition to new model helped to reduce management costs more than by 50%.

Thus, modern solutions in the field of supply chain management can effectively be used both in vertically integrated agro-industrial holdings, and in the environment of joint work of legally independent companies. Digitalization reduces operating and laid on costs, increasing production efficiency and product quality.