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 ^[1]. 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 ^[2].

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

Lean SCM focuses on minimising waste (time, material, cost) across the chain while maximising value for the customer ^[3]. 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.

Recent developments have introduced Agile Supply Chain concepts, emphasising adaptability, visibility, and rapid reconfiguration ^[4]. 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.

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.

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 in supply chains focuses on reducing carbon footprint, ensuring ethical sourcing, and promoting recyclability ^[5]. 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.