====== Typical Supply Chain Management (SCM) Approaches ======

Supply Chain Management (SCM) refers to the strategic coordination of procurement, production, logistics, and distribution processes to ensure timely and cost-effective delivery of materials and systems ((Christopher, M. (2016). Logistics & Supply Chain Management (5th ed.). Pearson)). In the context of autonomous systems, SCM strategies must handle highly specialised components, short technology cycles, and stringent quality standards. The SCOR model, developed by the Supply Chain Council (SCC), is a widely used framework for designing and evaluating supply chains ((APICS. (2021). SCOR Digital Standard (Version 13.0). Association for Supply Chain Management)).

<figure The SCOR Model Applied to Autonomous Systems  >
{{ :en:safeav:as:as:rtu_ch2_figure1.png?400| The SCOR Model Applied to Autonomous Systems }}
<caption>The SCOR Model Applied to Autonomous Systems </caption>
</figure>

Each phase integrates digital tools and real-time analytics to ensure supply resilience and performance traceability.

===== Lean Supply Chain Management =====

Lean SCM focuses on minimising waste (time, material, cost) across the chain while maximising value for the customer ((Womack, J. P., & Jones, D. T. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Free Press)). In autonomous system production, Lean methods include:
  * Kanban scheduling for just-in-time component delivery.
  * Standardised work procedures for repetitive integration steps.
  * Continuous improvement (Kaizen) loops based on test feedback.
Lean thinking improves agility in responding to rapid technological changes and component obsolescence.

===== Agile and Digital Supply Chains =====

Recent developments have introduced Agile Supply Chain concepts, emphasising adaptability, visibility, and rapid reconfiguration ((Ivanov, D., & Dolgui, A. (2021). New normal in supply chain management: Disruption and digitalization. International Journal of Production Research, 59(1), 1–12)).
Digital Supply Chain (DSC) technologies such as:
  * **IoT-based asset tracking**
  * **Blockchain-enabled traceability**
  * **AI-driven demand forecasting**
  * **Digital twins of supply networks**
enable dynamic optimisation and early detection of disruptions — crucial for fast-moving fields like autonomous robotics.

===== Risk Management and Resilience Building =====

Supply chain risk management (SCRM) in autonomous systems involves proactive identification and mitigation of disruptions:
  * **Supplier diversification:** multiple qualified vendors for critical components.
  * **Regionalisation:** developing local manufacturing hubs.
  * **Inventory buffers:** maintaining safety stock for high-risk parts.
  * **Scenario simulation:** modelling responses to geopolitical or pandemic-related events.
AI-based SCRM tools (e.g., Resilinc, Everstream) now monitor supplier health and logistics delays in real time.

===== Strategic Partnerships and Vertical Integration =====

Many companies are moving toward vertical integration, controlling multiple stages of the supply chain.
For instance:
  * Tesla manufactures its own battery packs and AI chips.
  * DJI designs in-house flight controllers and optical sensors.
This approach increases supply security and reduces dependency on third parties, though it requires substantial capital investment.

===== Sustainability and Ethical SCM =====

Sustainability in supply chains focuses on reducing carbon footprint, ensuring ethical sourcing, and promoting recyclability ((Dutta, P., Ge, J., & Yang, R. (2022). Sustainable supply chains for electronics manufacturing. Journal of Cleaner Production, 356, 131862)). Key practices:
  * Lifecycle assessments (LCA) for environmental impact.
  * Closed-loop recycling for electronic waste.
  * Supplier sustainability audits.
  * ISO 14001 certification for environmental management systems.
Effective hardware integration and supply chain management are tightly interwoven.
Integration depends on having high-quality, compatible components, while supply chains rely on robust feedback from integration and testing to forecast needs, reduce waste, and maintain reliability.
Modern SCM frameworks, particularly Lean, Agile, and Digital models, offer strategies to make the autonomy industry more resilient, sustainable, and responsive.