Supply chain event management

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Supply Chain Event Management ( SCEM ) is a concept for achieving cross-company transparency of logistical processes, which enables the timely reaction to critical exceptional events ("events") in supply chains . It thus represents a starting point for optimizing logistics performance and, at the same time, reducing logistics costs. SCEM is to be distinguished from pure tracking & tracing , as it can translate target / actual deviations into event notifications and advanced SCEM systems also have the ability to generate suggestions for action on the basis of "... stored rules or - in extreme cases - the problem to solve independently. "

Practical relevance and theoretical background

Supply chain managers spend much of their time correcting the effects of critical supply chain events. As a result of the currently recognizable trends in the procurement strategies of companies, both the complexity in supply chain management (SCM) and the susceptibility to failure of global supply chains will continue to increase. Approaches to deal with this growing complexity are therefore required. One possibility for this is the SCEM, which in turn is based on the Management by Exception (MbE) approach and the control loop principle. More serious than the workload caused by critical supply chain events in day-to-day operations are their medium and long-term consequences for companies. The central goals of logistics - logistics performance (including delivery time, reliability, flexibility) and logistics costs (e.g. control, system, transport, handling, storage costs) - are endangered by the occurrence of events. SCEM offers the potential to positively influence both logistics costs and logistics performance.

Functions and potential

Functions of a SCEM system

Supply chain event management comprises five functions:

  • Monitor
  • Report
  • Simulate
  • Taxes
  • measure up

In general, the introduction of a SCEM system promises, among other things, a reduced control effort for those responsible for the process. In addition, lead time reduction , higher process transparency, better adherence to deadlines , minimization of error propagation and increased capacity are mentioned. In addition, the relief of routine tasks and the detection of weak points in the supply chain for medium and long-term optimization of the supply chain are listed.

In isolated cases there have already been specific economic studies of SCEM systems: Among other things, a scenario with and without the use of the information advantage through an SCEM was compared in a simulation of a supply chain in the textile and clothing industry . Using the example of the production delay event type, it was demonstrated that avoiding the effects of this event (including sales losses, contractual penalties and subsequent deliveries) outweighed the costs of rescheduling (changing the transport mode from sea to air transport, which meant that the delayed production batch could still be delivered on time).

Procedure

Increased flexibility, cost reduction and time savings through SCEM

Events can be of different nature depending on the company or sector (examples: short-term changes to plans, traffic jams, capacity bottlenecks, machine damage, force majeure , delivery delays, etc.). Each of these events endangers the implementation of the subsequent processes. Due to the increasing IT penetration in SCM (e.g. through advanced planning and scheduling systems, tracking & tracing systems, RFID infrastructures, etc.), companies are able to identify disruptions in the supply chain at an early stage. This is where SCEM systems come in: they examine incoming data streams for predefined event patterns ("monitoring") and notify the relevant process managers in the event of critical deviations from the target and actual values ​​("reporting"). Then they calculate the effects of the identified events on subsequent processes and analyze to what extent there are options for rescheduling the supply chain processes in order to reduce or avoid the negative effects ("simulate"). The SCEM system then supports those responsible for the process in implementing the selected alternative courses of action ("control"). Ultimately, the SCEM system continuously saves relevant data and processes it for medium and long-term optimization of the supply chain, for example in the form of certain statistics and key figures ("measuring"). With SCEM, companies therefore achieve advantages on three levels (see also the adjacent graphic):

Time savings
through early notification of critical events.
Greater flexibility
through the generation of several alternative courses of action by the system as well as through early knowledge of the fault, which in most cases goes hand in hand with a larger solution space
Cost savings.
by reducing the workload of those responsible for the process and by reducing logistics costs.

literature

  • D. Kurz: Application of supply chain event management in the construction industry: illustrated using the example of the process of delivering ready-mixed concrete. VDM, Saarbrücken 2010, ISBN 978-3-639-18982-7 .
  • R. Ijioui, H. Emmerinch, M. Ceyp (Eds.): Supply Chain Event Management: Concepts, Processes, Success Factors and Practical Examples. Physica, Berlin 2007, ISBN 978-3-7908-1739-3 .
  • R. Zimmermann: Agent-based Supply Network Event Management. Birkhäuser, Basel 2006, ISBN 3-7643-7486-1 .
  • C. Hunewald: Supply Chain Event Management: Requirements and potentials using the example of the automotive industry. DUV, Wiesbaden 2005, ISBN 3-8244-2194-1 .

Individual evidence

  1. ↑ R. Tröger: Supply Chain Event Management - Requirements, system architecture and benefits from the perspective of focal companies in the fashion industry. 2014. (online)
  2. ^ V. Nissen: Supply Chain Event Management. In: Business Informatics. Vol. 44, No. 5, 2002, pp. 477-480.
  3. ↑ a b K. Heusler, W. Stölzle, H. Bachmann: Supply Chain Event Management. Basics, functions and potential actors. In: WiSt. Vol. 35, No. 1, 2006, pp. 19-24.
  4. ^ W. Bretzke, W. Stölzle, M. Karrer, P. Ploenes: From tracking & tracing to supply chain event management - current status and trends. KPMG Consulting AG (Ed.), 2002, pp. 1-45.
  5. ↑ a b W. Bretzke, W. Stölzle, M. Karrer, P. Ploenes: From Tracking & Tracing to Supply Chain Event Management - current status and trends. KPMG Consulting AG (Ed.), 2002, p. 2.
  6. ^ J. Speyerer, A. Zeller: Managing Supply Networks: Symptom Recognition and Diagnostic Analysis with Web Services. In: Proceedings of the 37th Hawaii International Conference on System Science (HICSS) Koloa. 2005, p. 1.
  7. ^ F. Straube, W. Krokowski, T. Beckmann, M. Goh: International Procurement in Emerging Markets - Discovering the drivers of sourcing success. Bremen 2007, p. 12 ff.
  8. ^ C. Schulte: Logistics. Ways to optimize the supply chain. 5th edition. Munich 2009, p. 7 ff.
  9. ↑ R. Ijioui, H. Emmerich, M. Ceyp, W. Dierks: prepared for surprises: transparency through supply chain event management. In: REFA news. No. 2, 2007, pp. 28-33.
  10. ↑ R. Tröger: Case study-based investigation of the need and requirements for SCEM systems for the fashion industry. In: Johannes Ruhland, Katharina Kirchner (Eds.): Jena Research Papers in Business and Economics. 08/2009, p. 58. (online) ( Memento from August 7, 2009 in the Internet Archive )
  11. ↑ R. Ijioui, H. Emmerich, M. Ceyp, W. Dierks: prepared for surprises: transparency through supply chain event management. In: REFA news. No. 2, 2007, p. 11.
  12. ↑ R. Tröger, S. Vogeler, R. Nickerl: Event management for exceptional cases . In: Dispo. No. 8, 2008, p. 24 f.
  13. ^ J. Müller, R. Tröger, R. Alt, A. Zeier: Gain in Transparency vs. Investment in the EPC Network - Analysis and Results of a Discrete Event Simulation Based on a Case Study in the Fashion Industry. Proceedings of the 7th International Joint Conference on Service Oriented Computing. SOC-LOG workshop, Stockholm 2009.