1. Supply Chain Coordination Service that is Both Robust and Operationally Efficient
As changes in consumer behavior force product ranges to expand in tandem with rising demand for rapid delivery, and with greater emphasis on environmental, social, and governance (ESG) values together with an increase in natural disasters and geopolitical risk, there is an urgent need for the manufacturing and logistics industries to redesign their supply chains to be both robust and operationally efficient.
In response, Hitachi is developing its concept of a supply chain coordination service that provides full value chain synchronization along with sourcing support.
Full value chain synchronization involves optimal planning and operational supervision to coordinate sales, production, procurement, and logistics across multiple sites and companies. Some elements of this are already available as part of Hitachi’s TWX-21 service.
Sourcing support, meanwhile, provides assistance with the selection of suppliers through trust assessment that takes account of ESG considerations as well as the usual issues of cost, quality, delivery, and credit. This involves a multifaceted review of the trustworthiness of companies or particular sites based on real-time monitoring of actual data on things like transactions, inspections, debt, and carbon dioxide (CO2) emissions as well as customer information from customer relationship management (CRM) and rating agencies, and also open sources of information such as social media. It issues alerts if suppliers pose an increased risk and also suggests new suppliers and offers matching advice. Hitachi also helps to expand business opportunities for its customers by offering digital solutions and consultation on how to improve assessments. This support draws on the business know-how it has built up in its own manufacturing operations and collaborative creation (co-creation) work.
Through co-creation, Hitachi intends to build supply chain platforms like this that are flexible and community-based.