Digital transformation in industrial machinery: for a well-oiled supply chain

By Martina Haas

Digital logistics solutions have become indispensable in the manufacture of industrial machinery and equipment

Manufacturers of industrial machinery and equipment face growing challenges. The complexity of machines is growing, leading to more complex supply chains that bring together a variety of just-in-time or just-in-sequence parts and components all the way to the production line. Shortages of raw materials and skyrocketing energy costs are also having a huge impact on the viability of existing procurement structures.

In this environment, companies depend on their ability to respond quickly and efficiently to changing market conditions and customer needs. At the same time, they need to keep their innovative edge and shore up their supply processes.

Smart tools and digital platform solutions deliver transparency, predictability, and the greatest possible cost control over processes in machinery and equipment manufacturing. The planning and control of process flows in production and logistics can be perfectly synchronized and coordinated to allow for agile management of any unforeseen events.

This yields greater supply chain visibility and production processes that are leaner, more reliable, and more cost-efficient across the board.

Professional Mechanical Engineer team Working on Personal Comput

Seeing the big picture

Today’s digital solutions can do it all—from automatic carrier assignment and digital freight rate management to real-time shipment tracking. Cloud-based tools like supply chain control towers replace error-prone manual processes with smart data consolidation and the integration of all involved partners across the process chain. Integrated apps like track & trace and a system of automated alerts ensure visibility and the utmost supply chain dependability. This not only identifies procurement bottlenecks early on, it drives down costs by avoiding them altogether.

Digital rate card management solutions ensure cost efficiency and streamline shipments of spare parts and components by calculating various shipping options at the click of a mouse. Whether you want to find the cheapest transport option, shorten freight transit times, or reduce your carbon emissions: Say goodbye to the hassle of comparing countless shipping options!

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Showing your best face to the future

Blue collar worker or engineer working in industrial production plant, dealing with metal processing, hydraulic machinery, production lines and other pprocessing industry machines. Image taken in Serbia, Europe.

Is the volatility in industrial machinery and equipment procurement and orders here to stay? What is the best way to deal with supplier problems? How can production remain profitable down the road under different market scenarios?

Enter planning tools such as the digital twin, already familiar in the industrial machinery and equipment sector. The capacity of the digital twin to provide a virtual representation of reality can be extended to include logistics, enabling the risk-free analysis, simulation and evaluation of various supply chain concepts and scenarios. These findings then yield decisions on strategic and sustainable network optimization and make it possible to develop solutions perfectly adapted to real-world conditions.

One thing is for certain: Digital logistics solutions have become indispensable in the manufacture of industrial machinery and equipment. The experts at Siemens Digital Logistics will be happy to help you transform and future-proof your supply chain.

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This article first appeared on the Siemens Digital Industries Software blog at