Suppliers’ contracts emphasize capacity and capabilities, but not necessarily the ability to innovate. Many negotiate based on aggregate buying volumes.
Goals and Objectives
Buying based on capacity reservation at suppliers based on a digital twin of the entire supply chain will yield lower inventories and higher perfect order results, while more emphasis on capabilities will increase innovation and quality.
Cloud, industry cloud, cognitive, and blockchain
Use Case Summary
There will be an understanding of supplier capacities, innovative technical capabilities, and certified processes, at a deeper level, as well as continuous rebalancing of the supply of critical capabilities rather than units and quantity in real time or near real time for execution.