Technical article
Bottleneck management in response to crisis situations
When supply is threatened by delivery delays
Manufacturing companies are constantly exposed to risks beyond their control that can affect their own supply situation. These include, among other things, global trade relations and the resulting complex, tightly synchronized supply chains, as well as politically driven challenges such as crises and wars, blockades of key transport routes or transshipment hubs, and border controls and customs procedures. If such a risk becomes a reality, supply disruptions, production interruptions, or intense competitive pressure due to resource shortages may ensue. Furthermore, high inventory and warehousing costs may become necessary to address a volatile supply situation, and rising customer dissatisfaction may result from poor delivery reliability. This often results in increased employee dissatisfaction due to working in a constant reactive mode (task force).
To mitigate these consequences in the event of a bottleneck, it is necessary to manage the situation quickly and efficiently and to address the associated challenges.
Challenges in Bottleneck Management
- When managing bottlenecks, it is crucial to quickly establish transparency regarding production supply.
- The enterprise resource planning (ERP) systems used by companies are generally unable to accurately reflect the actual supply situation.
- A reliable and up-to-date database is therefore key to being able to respond quickly to the new bottlenecks that arise every day.
- Suppliers generally have no information about the criticality of their customers' needs and find themselves caught between the conflicting interests of multiple buyers.
Achieving quick and effective results in the event of a bottleneck by setting up and operating a supply chain dashboard
The following steps are necessary to implement a care dashboard:
- Defining Objectives and Determining Data Requirements
Before actually collecting data, it is necessary to define the objectives. This raises the following questions, among others: What levels of aggregation are required (material number vs. finished product level)? How deep into the value chain should the data extend? What time periods should be covered (calendar weeks, days, etc.)? - Collection of usable data
The next step is to establish transparency regarding the available data and systems, as well as any additional data and systems that are required. The data is validated, and any missing or implausible data is identified. - Data Preparation and Modeling
This is followed by data integration from heterogeneous sources and the introduction of any necessary aggregation levels, such as time slices and product levels.
Dashboard and Metrics Design To set up and operate a supply cockpit for efficient management (program, delivery schedule, etc.), data is processed—for example, by filtering it according to criteria relevant to the target audience (markets, time slots, etc.).
Report and Action Plan The dashboard created is used for reporting to provide transparency regarding the supply situation at all hierarchical levels. Specifically, this involves comparing demand with supply capacities and quantities, and prioritizing components in collaboration with the supplier.
Operationalization To define the procedures and responsibilities during a bottleneck situation, it is recommended to visualize them using a process diagram. Work instructions, standards, templates, etc., can be helpful in this regard.
Success Factors
In addition to setting up a supply chain dashboard, it is crucial to ensure that reporting flows seamlessly throughout the hierarchy and that on-site support is provided at the supplier’s location. Only in this way can effective and feasible measures be derived as quickly as possible from a comprehensive assessment of the situation. In the event of a crisis, cooperation and close coordination between the customer and the supplier are essential.
