Fraunhofer Institute for Material Flow and Logistics IMLEfficient supply chain operations rely on innovative technologies like AI, blockchain, and digital twins. Trends such as digitalization, automation, and sustainability promote transparent, resilient, and flexible processes. Data-driven analyses and networked systems minimize risks, increase efficiency, and enable the future-proof design of global supply chains.
Supply chain operations
New technologies are revolutionizing global supply chain operations
Supply chain operations refer to the control and optimization of all processes along a value chain, from the procurement of raw materials to production and delivery to the end customer. The goal is to optimize existing processes for greater efficiency while increasing customer satisfaction. Integrated information flows, automation, and sustainability are increasingly becoming the focus.
The Fraunhofer Institute for Material Flow and Logistics IML is a leader in finding innovative solutions for supply chain operations. It develops and integrates solutions and technologies such as artificial intelligence, blockchain, and automated systems to make logistics and supply chains more efficient, sustainable, and resilient. Current projects include, for example, the digital product passport “GreenComplAI” for sustainable supply chain transparency and AI-supported solutions for the shop floor.
Our services
We see the innovative management of supply chain operations as a key component in optimizing profitability and securing future viability.
Find out about the opportunities for your company!
Comprehensive support for supply chain operations
Our services include both professional and technical expertise for managing and optimizing operational areas of the company along the supply chain:
- Purchasing and procurement: procurement optimization, strategic supplier management, automation, financial supply chain management
- Process optimization: value stream mapping, employee training, bottleneck analysis, key performance indicator identification and implementation, standardization, interface optimization, logistics and material flow optimization
- Support with tender procedures: Requirements assessment, supplier selection, support during the award process
- Current status assessment: Assessment and analysis of administrative and operational processes, data analysis, non-productive time analysis, capacity determination and equipment utilization times, value stream analysis, weakness analysis
- Site planning: Factory and warehouse planning, material flow planning, production layout planning, workplace and operating resource planning
Process optimization along the supply chain
Digital technologies play a central role in process optimization because they promote efficiency and sustainability. They enable the digital transformation and automation of processes, the optimization of material flows, and capacity planning, especially in complex systems such as logistics or production.
Through the use of technologies such as digital twins, AI-supported analyses, and sensor technology, processes can be monitored, weak points identified at an early stage, and data-based decisions made. In addition, digital technologies reduce maintenance costs, improve resource utilization, and create flexibility to respond more quickly to market changes.
The focus is on optimizing these core logistics processes:
- Demand planning: Forecasting and coordinating demand and resources.
- Procurement: Selection and management of suppliers and material procurement.
- Production planning: Planning and implementation of production and manufacturing processes.
- Inventory management: Management and optimization of inventory levels.
- Transportation management: Planning, controlling, and monitoring transportation processes.
- Order fulfillment: Ensuring efficient fulfillment of customer orders.
- Reverse logistics: Organization of returns and recycling.
- Sustainability and risk management: Implementation of measures to increase resilience and comply with environmental standards.
Our services include comprehensive analysis and optimization of your value streams, material flows, and interfaces to harmonize processes and eliminate bottlenecks. We support you in introducing key performance indicators, standardizing processes, and training your employees to achieve sustainable improvements. With targeted measures for production control and a precise analysis of weak points, we create the basis for a future-proof and efficient process landscape.
“A holistic view of infrastructure, processes, and the collaboration of all supply chain partners is key to fully tapping into efficiency gains and value creation potential in logistics.”
Michael Lücke, research associate at Fraunhofer IML in the field of supply chain operations
Digitalization in purchasing: key topics
Analog, operational purchasing can no longer respond flexibly to the complex requirements of today's supply chain management. It is the interface between the company internally and its partners throughout the supply chain externally. With regard to new technologies, operational purchasing is becoming increasingly digital and, in the future, automated. This also opens up new opportunities for more sustainable and transparent action. Key topics that our team of researchers is addressing in this context include:
- procurement optimization
- process management in purchasing
- requirements analysis of order processing
- optimization of the quotation process
- make-or-buy analyses
- location planning and supply chain network optimization
AI in procurement
Research at Fraunhofer IML in Dortmund focuses primarily on the use of AI in inventory management (automatic dispatcher), in operational purchasing (ordering), and in strategic purchasing and supplier management. The use of AI in purchasing processes offers the following seven advantages:
- Automation and optimization: Make processes more efficient through automated data processing and workflows.
- Accurate forecasts: AI generates precise price, market, and demand forecasts.
- Increased efficiency: Optimization in supplier search, inventory management, and demand planning.
- Risk and savings potential: Identification of risks and optimization opportunities in contracts and processes.
- Data-driven decisions: Supports strategic procurement decisions through informed analysis.
- Cost reduction: Company expenses are reduced through optimized strategies.
- Transparency: Creates greater clarity and traceability in purchasing processes.
Supply chain operation: our references
Innovative logistics and purchasing concept
The “LOUISE” project supported brick-and-mortar retailers in Bottrop with an innovative logistics and purchasing concept. A digital platform was developed that connects private households, businesses, and logistics to exchange goods and services. Ordered goods were delivered on the same day by e-cargo bikes or e-cars to customers, a Louise Point, or a parcel station.
AI-based benchmarking of sustainability data
The “GreenComplAI” research project is developing a solution for the continuous sustainability assessment of supply chains by combining digital product passports, automated data collection, and AI-supported plausibility analyses. It supports companies in ensuring ESG and CSRD compliance, managing risks, and increasing the resilience of their supply chains.
Financial innovation for the shop floor
The “SiMBA” research project is developing an intelligent system for dynamic pricing that continuously analyzes capacities, market conditions, and workloads and automatically adjusts prices. The aim is to enable companies to respond more quickly and accurately to market changes in order to increase efficiency and competitiveness in complex supply chains.
Support for operational logistics
Do you need support in optimizing traditional, logistical, and generally operational areas of your business?
Our team is always available to assist you.
FAQ on supply chain operations
What are supply chain operations?
Supply chain operations encompass the planning, implementation, and monitoring of all processes that ensure the flow of goods, information, and finances in the supply chain – from procurement to delivery to end customers. These processes aim to increase efficiency and maximize customer value.
What does SCM (supply chain management) encompass?
Supply chain management encompasses strategic and operational processes such as demand and production planning, procurement, warehousing, logistics, distribution, and sustainability and risk management. It aims to optimize the entire supply chain in order to make better use of costs, time, and resources.
What is the difference between logistics and supply chain management?
Logistics focuses operationally on the transport, storage, and management of goods within a company. Supply chain management, on the other hand, encompasses the strategic and holistic control of all actors and processes along the entire supply chain, from raw material suppliers to end customers.
What are the 6 Rs of logistics?
The 6 Rs of logistics stand for delivering the right product, in the right quantity, in the right quality, at the right time, to the right place, and at the right cost. These principles ensure efficient control of delivery processes in logistics.
What does process optimization involve?
Process optimization means systematically analyzing existing processes along the supply chain, identifying weaknesses, and implementing improvements. The goal is to reduce costs, make processes more efficient, and increase quality and customer satisfaction.
What is Purchasing 4.0?
Purchasing 4.0 refers to the digital transformation in procurement enabled by modern technologies such as artificial intelligence, big data, and the Internet of Things (IoT). The goal is to make the procurement process more efficient, transparent, and agile.
Which technologies play a key role in Purchasing 4.0?
Key technologies include artificial intelligence for data analysis, blockchain for transparent supply chains, and automated procurement systems. These technologies help optimize decision-making processes and reduce costs.