Modern supply chains are complex, and the most direct answer to complexity is a specialization of labor. Unfortunately, this approach results in silos that fail at delivering decisions that maximize returns for the company.
The best answer to informational silos is technology. If your technology is connected, then your information, processes, and people will be connected too. Here, we discuss how to try and make this possible and how supply chain scientists can generate better decisions, without having to resort to using a huge amount of resources.
In this episode of LokadTV, we go into more detail on decision making in supply chains and introduce the concept of silos. Supply chains are highly complex and depend upon a huge number of decisions that have to be taken every day.
Silos and the fragmentation of decisions happen when departments either can’t - or won’t - easily share information with other departments. This can happen for a number of reasons and results in a considerable reduction of efficiency and productivity, ultimately impacting upon the profitability of a business. We talk about both vertical and horizontal fragmentation within a business and how and why it can occur.
To conclude, we discuss what technology can be put in place to render a business’ supply chain more efficient and to avoid this phenomenon.
00:38 What do you actually mean by silos?
02:00 What sort of decisions are we talking about here?
04:06 Why are these decisions becoming fragmented?
06:28 Could you give us a practical example of vertical fragmentation and how businesses are actually loosing money on this?
09:03 How about horizontal fragmentation? Have you got an example of that too?
12:21 Why companies are still struggling with silos?
15:33 How can the productivity be improved?
20:06 What are you going to do with the rest of the supply chain staff?