5 Ways to Optimize Supply Chain with Grid Computing

Much discussion has been had around supply chain optimization efforts via cost effective packaging, robot-controlled warehouse, regulation compliance. and risk management.  These are promising avenues, but certainly not the only way toward cost savings. What may be new is achieving supply chain optimization with grid computing in response to labor unrest, counterfeit parts, and other disruptions.

Grid computing supports multi-tenants sharing the service in the supply chain.  This requires the use of software that can divide and farm out pieces of a program as one large system image to several thousand computers and servers in the electronic supply chain. One downside is that if one piece of the software on a node fails, other pieces of the software on othexr nodes may fail as well. This can be overcome with a failover component on another node.  If this component is not included, the entire grid will downgrade or shut down.

The supply chain users can access on demand a single or multiple applications while assisting in reducing infrastructure costs and peak load capacity. When a disruption occurs, traffic flows can be rerouted from blocked to available nodes.

Here are five ways that grid computing can help organizations achieve supply chain optimization, particularly through enhanced disaster planning.

  1. Disaster recovery plan focuses on recovering from natural and man-made disasters through supply chain risk management.  This would help any OEM and/or supplier take a proactive approach rather than reactive to dealing with and recovering from natural disaster disruptions. If some computers and servers are down due to a disaster, unaffected computers in grid would continue to operate while providing temporary re-routing traffic flows in the supply chain.
  2. Regulation compliance ensures the players in electronic supply chain comply with new and evolving regulations as the supplies electronically travel through countries before reaching its final destination. Not to be overlooked is the United States Trafficking Victims Protection Act’s (TVPA) minimum standards. The State Department has ranked countries into three tiers: fully complaint, not fully compliant, and not compliant with the regulation. Grid computing could support sending alerts on non-compliant countries attempting to send the supplies.
  3. Supplier tier visibility looks at how the OEMs can quickly identify their deep tier suppliers after the disruptions. In at least one instance, a third-tier supplier was discovered as the single source for multiple suppliers in the second-tier. This third-tier supplier became unavailable for a few weeks. Grid computing could send alerts on this discovery and rerouting of traffic to avoid supply delays.
  4. Supplier risk frequency formula looks at several factors on how often the suppliers should be evaluated within a year to ensure their availability.  They include threats, supply item criticality, and United States anti-human trafficking regulation compliance. At the minimum, a weight should assigned to each risk level (high, medium and low) for each factor. This would help to optimize risk evaluations in the grid.
  5. Dynamic on-demand service grids couldconsider and evaluate unexpected demands for supplies due to disruptions including new regulations, political changes (tariffs and taxes), large scale labor unrest, and mergers. This could allow organizations to temporarily reroute traffic and minimize the impacts of sudden rise in load capacity in portions of the grid. 

How are you leveraging grid technology to enhance your supply chain? Let us know in the comments section below. 

0 comments on “5 Ways to Optimize Supply Chain with Grid Computing

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.