3 steps to solve the problem of data silos in your supply chain

21/02/2022
Removing data silos across your supply chain

Key points:

  • Establish a structured data management system that can store information in a BOM structure with metadata, requirements, and contracts using a single hub to consolidate and integrate data from silos.
  • Protect intellectual property while sharing data by defining processes and training employees to adhere to them. Establish a central hub with access control and granular storage for all supplier collaboration.
  • Use a standardized data management platform to import data from suppliers via a single mechanism to avoid data lock-in, lower delivery and maintenance costs, and avoid vendor lock-in for both manufacturers and suppliers.
  • Opening up data silos can improve supply chain transparency, avoid vendor lock-in, and help an organization reach its full potential.

What is a data silo?

A data silo occurs when a set of information is only accessible by a specific team or organisation. Manufacturing a product from the early design stage to the manufacturing itself involves many stakeholders, including internal teams, suppliers and etc. Given the involvement of different parties, more often than not will you end up with a variety of data sources that can be hard to manage and synchronise. Incomplete or inconsistent data can lead to poor decision making and consequently to costly errors, delayed time to market and friction with suppliers or customers.

Recently Martin Lundstedt, President and CEO at Volvo Group said “The era of silos is over. We need a new form of cooperation to drive disruptive change. Partnership is the new leadership.” But the question remains how do you remove data silos from your supply chain? Or better, how to integrate so that they are not siloed anymore? At Eurostep we believe, based on our 25+ years of experience working with blue-chip customers on PLM collaboration solutions that it can be done in the following 3 steps:

1) Use a single hub, integrating and consolidating data from the silos, creating a system of records

According to a recent engineering.com survey, the complexity of products has doubled in the last 15 years. With this increase in product complexity, comes more suppliers and parts to manage, more engineering changes as well as more documentation. Storing all that data in a structured way that makes information easy and intuitive to find becomes very hard. This is in particular the case if the data is in multiple systems that are not integrated. Not to mention, when data is stored in an unstructured way through email threads, file-based repositories or collaboration tools, such as Sharepoint or Dropbox. You have probably many times thought that some piece of information was missing, when in fact you forgot about it because it was shared with you a long time ago. Or you looked for it but just couldn’t find it.

Organisations must work towards opening up and integrating information silos with product data as there is much value in the locked-in data. The siloed data must be easy to access whilst maintaining control. A way to achieve this is to use a structured data management system that stores information in a BOM structure, with all the metadata, requirements and contracts attached to the parts and assemblies. The system should have integration capabilities that make it easy to synchronise any external system so that all information is up to date whenever a change occurs.

2) Protecting intellectual property when opening up the silos and sharing data

One of the biggest constraints in getting the necessary information across a supply chain is the fear of losing IP. It is a common occurrence that employees expose IP unintentionally or through negligence. For example, sending an email with an attached document that contains complete assembly specifications, when the recipient only needed material properties.

In a study made by Egress Software Technologies, 1006 security professionals at organisations of 500 people or more were surveyed to determine what are the most common technologies through which sensitive data is unintentionally breached by employees. The results were the following:

  • External email like a Gmail or Yahoo account (51%)
  • Corporate email (46%)
  • File sharing via FTP (40%)
  • Collaboration tools like Slack or Dropbox (38%)
  • SMS or instant messaging apps like Whatsapp (35%)

With the growing amounts of communication channels in organizations, it is important to establish clear processes with defined responsibilities for information sharing. It is also crucial to educate employees on how to follow them. Having a central hub for all collaboration with suppliers can be a smart solution. With access control and granular storage in such a system, you are able to control who has access and to what. In that way, you will be able to share only the data intended for sharing and keep the in-house data not exposed to the outside world. Sharing technical data across a supply chain from one dedicated hub will remove confusion, improve control and build trust and confidence in partners.

3) Use a standardised Data Management Platform to get rid of data silos

Manufacturers and suppliers deal with a wide variety of software and data formats in the different stages of designing and manufacturing. This comes with high costs from a software license perspective but also data administration and training are expensive. Often these software licenses must be provided across the supply chain so that the data can be viewed and made accessible. Moreover, using different formats leads to data lock-in as it is hard to integrate systems with different formats. This makes it complicated to keep track of changes and obtain a full audit trail in the process. There is no system of records.

By using a standard-based and open platform with Master Data Management capabilities, data delivered from suppliers can be imported via a single mechanism and no specific IT system is needed. The exchange of information across the whole supply chain can be automated which results in lower delivery and maintenance costs as well as higher quality. This will also prevent vendor lock-in for both manufacturers and suppliers, as open formats make it easier to migrate data and integrate tools.

Conclusion

Regardless of why or how your supply chain experiences data silos, they are an obstruction that leads to inefficiency and prevents your organization from reaching its full potential. Nonetheless, there are a number of best practices that can improve the fluidity of information exchange across your supply chain in a controlled and secure way.

It is time to open up the data silos with a focus on information, not just systems.

Our open standard-based collaboration hub — ShareAspace, is a great platform that incorporates the best practices to improve supply chain transparency, protect IP and avoid vendor lock-in. With more than 20 years of experience at Eurostep, ShareAspace is ideally placed to help companies form strong resilient value chains and get the most out of manufacturing collaborations.

Discover how you can get rid of your problem with data silos in record time by contacting us at info@eurostep.com


Executive summary:

In a supply chain, data silos occur when information is only accessible to a specific team or organization. Product complexity has doubled in the last 15 years, resulting in more suppliers, parts, and engineering changes, and thus more data sources that may be difficult to manage and synchronize. To eliminate supply chain data silos, organizations should use a single hub that integrates and consolidates data from the silos. When sharing data across the supply chain, it is critical to protect intellectual property. Employees must be trained on how to handle sensitive data, and a central hub for supplier collaboration with access control and granular storage can aid in data access control. Using standard-based data management platforms can also facilitate the elimination of data silos. Such a solution to remove data silos is Eurostep’s standard-based collaboration hub – ShareAspace – which can help improve supply chain transparency, protect IP, and avoid vendor lock-in.

Learn more

BAE Systems acquires Eurostep to deliver advanced digital asset management
31 October 2023 BAE Systems has acquired Eurostep, a secure data sharing company headquartered in Sweden. The company will form part of BAE Systems’ Digital Intelligence business. The acquisition is ...
Webinar: Leveraging AI* for built asset Digital Twins – Turning scattered data into strategic assets
From scattered data to smart assets: A webinar on digital twin management with ShareAspace Managing disjointed data repositories for built assets? See how ShareAspace and automated reasoning, an AI discipline, ...
Webinar: Profitable partnerships – Leverage ShareAspace for supply chain collaboration
Watch the replay on-demand Are you a manager in the manufacturing industry grappling with the complexities of sharing product data across various stakeholders? In a landscape where secure, efficient, and ...
Enabling digital transformation in the process industry through standardization
Unlocking seamless integration and operational excellence through global standards in the process industry The digital age has ushered in countless opportunities for industries to innovate, optimize, and evolve. This is ...
Unlocking collaborative sustainability through PLM platforms: A case for ShareAspace
Unlocking the future of sustainable business: How PLM fosters collaborative sustainability In an era where the climate crisis looms as an existential threat, businesses across industries are grappling with the ...
The ultimate guide to streamlining Engineering Change Management with PLM platforms
Why effective engineering change management is crucial for modern businesses Engineering change management is no simple feat, especially when you consider the sheer number of variables, activities, and stakeholders involved. ...
Data carve-out best practices: Insights into streamlining data separation for business units
In today's evolving business landscape, carve-outs have become a standard tool for companies looking to refine their focus and divest non-core assets or units. While carve-outs involve multiple complex processes ...
Eurostep to Offer Expert Insights at TCG’s Annual Inspirationsdagen in Stockholm
Stockholm, Sweden — September 14, 2023 — Eurostep, a leader in providing software solutions for secure PLM collaboration across various industries, has announced its participation in TCG's annual Inspirationsdagen event. The ...
The Role of a Digital Thread in PLM Collaboration: The backbone of global value networks
Introduction Product Lifecycle Management (PLM) is a complex process that becomes even more intricate when it involves various stakeholders like OEMs, suppliers, and design partners. As organizations move toward globally ...
Mastering Product Lifecycle Management 101: Secure PLM collaboration in global value networks
Introduction Product Lifecycle Management (PLM) is a crucial element in modern manufacturing and design sectors. It involves managing a product from its inception, through its design and manufacturing phases, to ...
A resilient Digital Thread: A comprehensive guide to integrated Product Lifecycle Management
Introduction In the ever-evolving landscape of manufacturing, the digital thread has emerged as a cornerstone of modern industrial processes. But what exactly is a digital thread, and why is resilience ...
Understanding the key differences: Digital Thread vs. Digital Twin explained
In today's fast-paced manufacturing landscape, two terms stand out as transformative: Digital Thread and Digital Twin. While they may seem interchangeable, understanding their unique features can empower businesses to create ...
What is a Digital Thread?
Digital Thread A digital thread serves as a communication backbone, facilitating an integrated flow of product and asset data throughout their lifecycles. This framework links multiple digital twins, aiming for ...
Collaborative manufacturing strategies: types, challenges, and scalable solutions
Manufacturing in the modern era is far from straightforward. With global supply chains and complex, multi-layered projects, collaboration is both a necessity and a challenge. Traditionally, one might think of ...
Digital Twins: Key considerations and challenges
Digital twins serve as virtual replicas of physical systems and are increasingly becoming indispensable in industries such as Defence & Aerospace, Manufacturing, and AEC & Plant. However, leveraging them effectively ...
How does the Product Life Cycle Support (PLCS) standard support creating digital threads?
In an era where the management of complex products demands more than just traditional approaches, the concept of Product Lifecycle Management (PLM) and its modern extension into digital threads is ...
What is PLM? Understanding Product Lifecycle Management
Product Data Management (PDM) often comes to mind when we talk about managing parts, documents, and files, along with their interrelationships. But if we venture beyond the straightforward core of ...
The evolution of Product Data Management
In an age defined by technological leaps and bounds, Product Data Management (PDM) has evolved from being a mere digital vault for CAD files to an indispensable tool for competitive ...
Navigating digital waters: Supporting your journey toward Maritime 4.0
From Concept to Ship Design Through Operations and Maintenance Are you ready to navigate the waves of digital transformation in the Maritime industry? This in-depth commentary written by CIMdata sheds ...
Arrowhead fPVN logo header
Eurostep partners with Luleå University of Technology, Stora Enso Fors Bruk, and others in a ground-breaking €35M digitalisation project
Stockholm, Sweden - July 18, 2023: Eurostep, a leading provider of PLM (Product Lifecycle Management) collaboration software solutions, is proud to announce its involvement in the Arrowhead fPVN project, a ...
BAE Systems acquires Eurostep to deliver advanced digital asset management
31 October 2023 BAE Systems has acquired Eurostep, a secure data sharing company headquartered in Sweden. The company will form part of BAE Systems’ Digital Intelligence business. The acquisition is ...
Webinar: Leveraging AI* for built asset Digital Twins – Turning scattered data into strategic assets
From scattered data to smart assets: A webinar on digital twin management with ShareAspace Managing disjointed data repositories for built assets? See how ShareAspace and automated reasoning, an AI discipline, ...
Webinar: Profitable partnerships – Leverage ShareAspace for supply chain collaboration
Watch the replay on-demand Are you a manager in the manufacturing industry grappling with the complexities of sharing product data across various stakeholders? In a landscape where secure, efficient, and ...
Enabling digital transformation in the process industry through standardization
Unlocking seamless integration and operational excellence through global standards in the process industry The digital age has ushered in countless opportunities for industries to innovate, optimize, and evolve. This is ...
Unlocking collaborative sustainability through PLM platforms: A case for ShareAspace
Unlocking the future of sustainable business: How PLM fosters collaborative sustainability In an era where the climate crisis looms as an existential threat, businesses across industries are grappling with the ...
The ultimate guide to streamlining Engineering Change Management with PLM platforms
Why effective engineering change management is crucial for modern businesses Engineering change management is no simple feat, especially when you consider the sheer number of variables, activities, and stakeholders involved. ...
Data carve-out best practices: Insights into streamlining data separation for business units
In today's evolving business landscape, carve-outs have become a standard tool for companies looking to refine their focus and divest non-core assets or units. While carve-outs involve multiple complex processes ...
Eurostep to Offer Expert Insights at TCG’s Annual Inspirationsdagen in Stockholm
Stockholm, Sweden — September 14, 2023 — Eurostep, a leader in providing software solutions for secure PLM collaboration across various industries, has announced its participation in TCG's annual Inspirationsdagen event. The ...
The Role of a Digital Thread in PLM Collaboration: The backbone of global value networks
Introduction Product Lifecycle Management (PLM) is a complex process that becomes even more intricate when it involves various stakeholders like OEMs, suppliers, and design partners. As organizations move toward globally ...