Edge Computing

Trend Definition 

What is the essence of this trend? What is its impact? 

• Essence: Edge Computing reduces the data transfer to central data centres by decentralising data processing capabilities closer to the data sources
• Impact: Edge computing improves processing speed and IoT connectivity and is particularly useful when fast data processing is needed, for instance, such as analysing process data in real-time to identify efficiency gains

Trend Drivers 

Why is this trend emerging now? What’s changing? 

• Technological Advancements: Fast improvements in computing, storing, and networking as well as mobile computing and the IoT, now challenge legacy data processing capabilities
• Bandwidth, Costs, and Stability: Edge Computing reduces the strain on bandwidth, lowers the costs associated with data transmission, and reduced the dependence on centralised networks. This is particularly beneficial for supply chains since vast amounts of data need to be processed cost-effectively 

Use Cases 

How to apply this trend? 

• Shipment Tracking: Keeping track of sensitive and high-quality shipments
  Example: Edge Computing enables companies to process data also in dark zones as well as a high level of IT ownership. This ensures a constant tracking of their shipments, the delivery quality, and a reduced exposure to cyberattacks which is connected to higher security in procurement
• Smart Warehousing: Monitoring inventory levels at all times
  Example: It is possible to efficiently manage volume fluctuations with direct impact on procurement activities, helping to maintain the desired inventory levels

Procurement Relevance & Response Strategies 

How should Procurement adapt its Processes, Organisation, and Strategy?

• Enhancing Supply Chain Transparency: Use Edge Computing to gain real-time visibility into the supply chain to enable more accurate and timely procurement decisions
• Boosting Security in Data Handling: Implement Edge Computing when processing highly sensitive procurement data to leverage the data security benefits