Let's be clear--middleware (or iPaaS, if you prefer the more modern term for platform integration) has been a key part of supply chain management for decades. B2B communications surrounding orders, freight bills, shipment status, invoices, etc. across the supply chain between retailers, distributors, manufacturers, suppliers, and others have been conducted using Electronic Data Interchange (EDI) since the 1970s. Recently, some of the more progressive retailers, such as Walmart and Target have begun using proprietary communications protocols, or APIs (Application Programming Interfaces) as their basic communications standards, requiring other supply chain partners to use them for all communications. B2B communications technologies based on streaming data tools are also emerging, allowing supply chain partners real-time access to each other's information, creating more opportunities to enhance supply chain efficiencies. But the B2B communications revolution is a topic for a future Blog.
So where, you say, is middleware needed in other areas of supply chain management? Let's start with automation. Our plants, distribution centers, trucks, yards are becoming hives of new technologies, often from many different vendors. Take a warehouse for example--you can have automated forklifts, VR technologies, ASRS systems, picking robots all with their own control systems, all wanted to access the order management (OM) and warehouse management servers (WMS) at the same time. The reality is that allowing one system to immediately access the OM or WMS at the expense of others with a more critical (or more efficient) request is not good facility management.
Enter multi-automation technology optimization solutions, such as Seyo (in full disclosure, an SCV portfolio company). Founded by entrepreneurs with PhDs in computer science, Seyo can manage a fleet in a warehouse, or out in a remote robotic farm just as effectively. On-the-fly optimizations, by combining data at the edge with the Seyo Management System, missions and paths can be recalculated every time a robot changes its current state eliminating congestion and protecting the system from deadlock.
And then there is the automation operator problem. All those different technologies require sophisticated and constant operator training as machine upgrades are commonly done via the Cloud, meaning an operator might show up in the morning and find a significant change has been made in the control system of their machine. And what if an operator is sick that day but the machine is a critical part of an assembly process? Are there other operators trained in the technology that can substitute? Note: this is a serious issue in aircraft manufacturing, where regulatory agencies require all parts to be produced by fully trained operators.
Enter Covalent Networks (yes, another SCV portfolio company). Covalent is a cloud-based middleware software as a service solution that works on any internet-connected device, allowing for training, evaluation, and remediation processes to occur in the flow of work. It's easy for trainees, trainers, and supervisors to complete their action items in real-time and for leaders to match critical worker-competency data with broader operational data sets. Historically, managing in-facility training on automation was often handled by Excel spreadsheets--not the best way to manage complex training data across multiple machines and people. Launching a new procedural change that requires re-training? Deploy that training instantly to the workers that need it. Need to forecast your workforce's capability to meet next month's customer orders? Run an automatic analysis and identify gaps.
All this can be done in a few minutes, as opposed to running around trying to find that Excel spreadsheet and decide who may or not be capable of running the latest version of the automated equipment.
And now onto emerging issues in supply chain management that involve the use of blockchain technologies to manage B2B communications across the supply chain. Some innovative Tier 1 suppliers, looking to create a fully verified chain of custody with their Tier 2,3 4 suppliers are creating private blockchain solutions, especially as manufacturers and retailers want proof that the suppliers are not using slave labor, etc. Since widely acceptable blockchain standards do not yet exist ( and may never), a manufacturer seeking to connect with numerous private supplier blockchains, often with different cryptocurrencies needs a translation middleware to make sure all supply chain partners can speak to each other in their own languages.
Enter Finboot (yes, another portfolio company). Finboot is the SaaS company behind MARCO, the enterprise-grade suite of blockchain applications and middleware solutions for value and supply chains. Finboot facilitates the adoption of Distributed Ledger Technology (DLT) and Blockchain technologies into daily business operations, generating ecosystems based on trust, collaboration, and transparency-- focusing on solving real business problems that quickly generate a return on investment. In particular, their technology allows companies to manage private blockchains with varying currencies and standards across a wide variety of supply chain partners.
And what about NFTs? Those NFTs (non-fungible token, read more here), currently popular with the art, media, and sports world, could prove useful in the tracking of individual items along the global supply chain from an authenticity and verification standpoint. Is it just hype? Hard to tell at present, but watch closely for any clear use cases that emerge with associated business value propositions.
All in all, middleware is becoming an even more crucial tool in managing our increasingly complex supply chains. Look for lots more innovation in this space going forward.
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