Lecture 1: Introduction to Control Towers

Dear reader,

The first blog post is written as a follow-up of the first lecture for the course Control Towers at the NHTV University of Applied Sciences, lead by Marcel Wouterse.

The present blog post, “Lecture 1: Introduction to Control Towers” is structured on three pillars:

1. Introduction: Traditional vs. Modern definitions of Control Towers;
2. The Supply Chain Control Tower: Main Capabilities;
3. Guest Lecture & Case Study: CAPE Groep – Sebastian Piest.

Above this blog post you will notice an attached picture showcasing the Control Tower (CT) at the Amsterdam Schiphol Airport, in the Netherlands. In general, the role of a CT is to manage accurately and timely, the incoming and outgoing flow of airplanes at a specific airport, in an organised and safe procedure.

According to the International Civil Aviation Organization (ICAO) in Annex 11, the control tower has the responsibility to administer the air traffic services, with the aim to ensure a collision-free flow of aircrafts, to provide flight information and to ensure alerting services in case of emergency.

However, in the past years a paradigm shift occurred and the CT concept has been adopted and implemented in the world of supply chain.

The consultancy company Accenture defines the supply chain CT as a “centralised hub that uses real-time data from a company’s existing, integrated data management and transactional systems to integrate processes and tools across the end-to-end supply chain and drive business outcomes“.

Additionally, in the Accenture report “Prepare for Takeoff with a Supply Chain Control Tower” a CT has three main capabilities:

1. Real-Time Visibility;
2. Analytics: Risk analysis and Response Management;
3. Process Execution.

After the definitions are determined and the basic functionalities are covered, it is time to discuss about more practical aspects, such as applicability of such a CT service in the supply chain and the benefits of use.

On Tuesday the 5th of September, the Supply Chain Minor students received a guest lecture from Sebastian Piest about CT. He works for the company CAPE Groep which provides CT software solutions. During the lecture he mentioned that the CT ensures End-2-End (E-2-E) visibility over a network display of multiple supply chains. Moreover, the CT is an advanced control mechanism for instant action and execution.

During the lecture, he defined four types CT’s:

1. Internal: Process improvement in own organisation;
2. Vertical: E-2-E optimisation of transport or production nodes;
3. Horizontal: Centralised bundling of materials for maximal utilisation;
4. Cross–Chain: Complete optimisation and integration of multiple supply chain partners.

The lecture concluded by describing the CT software, and by defining the added value for implementing a CT software solution, which includes the following advantages for a supply chain:

1. Risk mitigation;
2. Cost reduction;
3. Increased speed and flexibility;
4. Real-time visibility over the entire supply chain network.

As an editor note, in my opinion, I believe that CT is an advanced concept for gaining visibility and gaining better control over multiple supply chains, however, I believe that there are also a few challenges as well.

1. Sharing information with multiple partners: full transparency is difficult to achieve with tier 2 or tier 3 suppliers.
2. IT Integration: considering that multiple systems run in a company such as Warehouse Management System (WMS) or Transport Management System (TMS), it is complex to integrate multiple systems into one global running system.
3. Change Management: Innovative technologies are disruptive and thus fast adoption rate depends on company culture and reluctance to change from the employees.

In conclusion, the “Lecture 1: Introduction to Control Towers” blog post purpose was to inform the readers and the supply chain professionals about the CT concept, presenting its main characteristics, advantages and challenges.