5 Reasons Why Value Chain Optimization Closes the Supply Chain Loop
Credit to Author: Joseph McMullen| Date: Tue, 31 Oct 2017 07:00:18 +0000
By: Rachel K. Carson, MarCom Intern for Process Industries
Remember when you were young and completed a connect-the-dots activity? At first the page appeared to be an array of random dots with no association with one another. However, once you started following the chronological nature of the numbered dots, and connected them, suddenly a picture came to life. The dots that before were separate and unconnected suddenly work together, in one solution, to create the bigger picture. Like connect-the-dots activities, value chain optimization does the same task in mining processes. Value chain optimization is all about connecting individual point solutions to close gaps and create a more smooth flowing, connected mine.
The first of the four pillars of digital mining transformation is Value Chain Optimization. This innovation is sparked from within the environment full of individual point solutions that cover some portion of the overall supply chain. These individual point solutions essentially create a quilt work of different applications which ultimately drive resistance of data flow. To create a more fluent data flow stream, all dots must be connected. But it’s not achieved through integration, but rather through a single unified application. We close the loop by connecting all the dots and close the gap by replacing costly point solutions. This software solution drives a more linked, smoother data flow, which is the ultimate goal of value chain optimization.
How can Value Chain Optimization be an ROI booster for my Company?
Value Chain Optimization closes the supply chain loop successfully and efficiently by:
- Employing supply chain management tools to efficiently generate schedules and improves mine plans. A great opportunity is generated to surpass past deficiencies that spreadsheets bring to the table with critical operations and supply chain decision making tools.
- Increasing production performance and providing insights to better understanding deviations between operations and planning. Technological development software provides a break in static and time consuming means of data collection.
- Promoting greater visibility across the entire value chain in a unified environment (from planning to scheduling to inventory). Most mining companies do not find out where their inventories stand until extensive surveys are done. This software closes that loop and allows for more advanced tracking across entire value chain.
- Building model scenarios only once; not rebuilding for each scenario. Time is saved from only generating one model and running multiple real-life scenarios on the same model. No rebuild necessary.
- Considering resource-to-market strategies that take the entire system into account. From raw materials to market, these strategies take all elements and put them into a production context. This not only improves inventory movements but its quality as well.
Integrating operations management within the unified supply chain allows you to best capture economic and energy-saving opportunities. Value chain optimization is a necessary pillar of the complete digital mining transformation to connect all dots of your mine and create full visibility across all supply chain operations and endeavors. Many companies offer some version of value chain optimization. But only Schneider Electric offers a unified by design (not integration) solution.
Ready to learn more about value chain optimization? Download the on-demand recording…
On August 30th, Doug Warren outlined the importance of value chain optimization in Digital Mining Transformation webinar. He explains how crucial it is for mining companies to close the loop and connect the dots between individual point solutions to form a smoother, more connected flow of operations and hence data. He also explains how value chain optimization plays an important part of one of the four pillars to the digital mining transformation. Download now to learn more.
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