Inbound Logistics | April 2025

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The Shift-Left Imperative: Tearing Down the Silos

Companies must rethink how they manage supply chains to navigate complexity— expanding the definition of supply chains and embracing the shift-left strategy.

G lobal supply chains today are dened by disruption, uncertainty, and the need for resilience. To navigate this new reality, companies must rethink their approach to supply chain management, beginning with the product lifecycle.

Moving Logistics Execution Towards Product Design

A ‘Shift-Left’ strategy integrates supply chain considerations early in product design and production planning. By linking supply chain visibility to design, businesses can proactively mitigate risks, optimize material choices, and streamline logistics. For example, more than 80% of an industrial product’s carbon footprint is determined during the design phase. Early collaboration between product designers and supply chain managers can reduce costs and environmental impact, and prevent supply disruptions. Convergence of Supply Chain and Manufacturing To boost efciencies, supply chain and manufacturing must operate as one cohesive unit. This requires collaboration between engineering, procurement, and logistics teams to assess trade-offs. Companies must also adopt advanced technologies and IT tools, which help identify supply chain disruptions in real-time and optimize production schedules. Articial intelligence (AI) further aids decision-making by predicting disruptions and recommending real-time strategic adjustments. Digital transformation lies at the core of the shift-left approach. Cloud-based supply

Key Takeaways: Shift-Left Optimizes Supply Chains 1. Shift-left is THE secret ingredient of successful businesses: Breaking down silos between manufacturing and supply chain boosts agility, decision- making, and risk reduction. 2. A proactive, data-driven approach using digital twins and AI ensures faster responses and sharpens companies’ competitive edge in uncertain markets. 3. Embedding sustainability into supply chain design is essential for regulatory compliance and long- term growth. Companies embracing this transformation will thrive in the evolving world of supply chain management.

chain control towers improve collaboration and visibility, while digital twins—precise virtual models of the supply chain— enable advanced simulations and scenario analysis. AI-powered analytics assess potential constraints such as production bottlenecks and carbon footprints before nal decisions are made. A digital twin offers insights into sourcing, production, and logistics. This helps businesses anticipate disruptions. When integrated with product lifecycle management systems, digital twins provide predictive insights to guide material choices, supplier selection, and scheduling. Real-time data connectivity between supply chain, engineering, and procurement teams ensures decisions are informed by comprehensive insights, fostering collaboration and alignment on cost, risk, and sustainability goals.

–By Volker Albrecht

Conclusion: The Future of Resilient Supply Chains

For C-level executives and innovation- driven senior leaders, adopting a shift-left strategy is not just an upgrade—it’s a fundamental shift in how products are designed, produced, and delivered.

CEO Siemens Digital Logistics

For more in-depth information, download the white paper “The shift-left logistics imperative”: https://resources.sw.siemens.com/en-US/white-paper-the-shift-left-logistics-imperative/

22 Inbound Logistics • April 2025