Digital Supply Chain

Supply Chain ABSTRACT

Digitization is more than the Material Supply Chain -- it is the entire enterprise and lifecycle. Breaking down silos is just the first step and the infrastructure to use the data is our Digital Supply Chain. Hexagon PPM's solution draws together all design sources, materials tagging, supplier engagement and supply chain management into one platform to provide a single source of truth for material management.

PPM's Digital Supply Chain strategy combines technological advancements and work process efficiencies. The solution eliminates waste, drives cost savings and increases project efficiency:

  • Integration across the value chain
  • Bill of Materials and Engineering Requisitioning
  • Materials supply chain management
  • Improvements on the construction site
  • Supplier Engagement
  • Improved supply chain management

Deep Integration across the Value Chain
Hexagon PPM has solutions that cover the entire material and supply chain work processes. This means the right quantity of materials are handed over from engineering, enabling procurement to make the right decisions in project purchasing, supply chain engagement and scheduling, leading to the right materials being in the right place at the right time when construction begins. 

Bill of Material to Engineering Requisition
Converting dynamic engineering data into stable procurement data is one of the first tasks to be performed. Our solution can uniquely draw together all design sources onto one platform, providing a single, up-to-date source of information. 

The handover from engineering to procurement is, in the real world, never a simple, singular event. In fact, the design changes during the procurement (and even construction) phase can dramatically impact the timeline for delivery unless the procurement team has ongoing access to up-to-date data and changes. Procurement teams have the data at their fingertips to remain nimble and agile, responding to any unexpected changes while reducing the risk of over- or under-procurement. With better quality and quantity of information available earlier, purchase decisions can be proactive instead of reactive.

Materials Supply Chain Management 
Procurement teams depend on up-to-date, accurate information both from design, but also how many surplus supplies are already in the warehouse. Ordering the right quantity of materials depends on visibility into what's already in the warehouse at the start, but also ongoing up-to-date information about what materials have been purchased, what suppliers have been engaged, and in what sequence the materials and suppliers need to be brought on site during the construction lifecycle. 

It is mandatory to complete the purchasing and tracking cycle within one system, based on one integrated and consolidated data set: 

  • Supplier management
  • Inquiries
  • Bid tabulation
  • Purchase orders and change orders
  • Expediting, traffic, pre-fabrication, and inspection
  • Subcontracting
  • Site materials management
Construction Site
Efficiency between Procurement and Constructions teams is critical in ensuring materials arrive in the right place at the right time. Effective planning and materials management enables construction to balance onsite personnel with material availability so that material can be assigned to site inventories in the shortest possible time. 
Total material visibility from shipments through issue of material to be installed into the final works 
  • Multiple warehouse status capabilities -- physical and virtual
  • Ability to track material movement between the warehouses with audit trails
  • Fabrication tracking of the fabricated spools
  • Work package planning with priorities by sequence or date
  • Ability to forecast material availability -- looking ahead by any number of days required
  • Complete history of material issues down to the isometric/spool level, which gives material traceability
  • Barcoding, QR-Coding and RFID to support receiving, Transfer and issuing of Material

Supplier Engagement
Construction subcontracts today account for 30 percent to 40 percent of a project's cost. Sourcing the best suppliers, managing supply chain relationship and performance, and ensuring technical/quality compliance throughout construction are critical to a project's success. Project liabilities and risks cannot be completely passed down to a subcontractor.
Taking the headache out of supply chain management is possible by enabling users to seamlessly integrate interchanges with commodity suppliers, subcontractors, manufacturers, fabricators and freight forwarders. 

Improve Supply Chain Management 
Once the supply chain is engaged, a good tool will need to facilitate improved supply chain management. The ability to effectively integrate and manage supply chain allows effective, efficient management of materials milestones. Automatic notification of missed or delayed critical events enables project managers to performance manage suppliers more efficiently and resolve problems as soon as they arise.  
This up-to-date accuracy is delivered through a Supplier Portal, a simple, user-friendly online platform that suppliers utilise to outline workflows, update on progress, and update any changes in materials needed.

This up-to-date accuracy is delivered through a Supplier Portal, a simple, user-friendly online platform that suppliers utilise to outline workflows, update on progress, and update any changes in materials needed.
A portal should deliver:
  • Self-registrations and maintenance
  • Questionnaires
  • Inquiry and Request for Quotations
  • Knowledge of packing well in advance of release from the suppliers allows for better planning and allocation of resources (preliminary packing list and packages)
  • Timely information and flexible event tracking, increasing project efficiency and savings through logistic process

JUST 25% OF SUPPLY CHAIN ORGANIZATIONS SAY DIGITAL PROJECTS ACROSS THEIR COMPANIES ARE ALIGNED UNDER A SINGLE GOVERNANCE PROCESS.

Gartner

Rob van der Meulen, Three Steps To A Digital Supply Chain