Modern supply chains thrive on accurate data. This need is why logistics companies rely on a Supervisory Control and Data Acquisition (SCADA) system, offering the highest level of control and precision for all of the pieces of a supply chain network.
But what is SCADA used for in the supply chain network? This article explores the way that a SCADA network can improve efficiency and enhance the logistics process.
How Does SCADA Work?
What does SCADA stand for? It stands for Supervisory Control and Data Acquisition. A SCADA system consists of the following components:
- Supervisory computers, which serve as the core of the system
- Remote terminal units (RTUs)
- Programmable logic controllers (PLCs)
- Human-machine interface (HMI) units that allow you to work on the system
Together, these components form a system that enables users to monitor complex industrial processes and even control certain parts and equipment remotely.
What Industries Use SCADA?
What is SCADA used for exactly?
SCADA systems are currently used within a variety of industries:
- Food and beverage
- Energy
- Manufacturing
- Recycling
- Transportation
- Wastewater
The application of this technology is essentially limitless, and it can be adapted to a variety of industries.
What Is the Purpose of SCADA in the Supply Chain?
A SCADA network is a series of computers and software systems designed to monitor the supply chain components. These elements allow companies to do the following:
- Control various aspects of the shipping and logistics process
- Gather and monitor real-time transportation data
- Directly interact with equipment through a software interface
- Record events and evaluate the supply chain to increase efficiency
The system allows users to control each component of the supply chain, eliminating waste and ensuring a better workflow overall.
Relationship Between Supply Chain and Transportation of Goods
Basically, a SCADA network provides greater end-to-end visibility, and this data can be used to optimize the entire system. It can be used for a range of logistics needs:
- Warehousing and inventory management
- Transportation and logistics planning
- Enterprise route planning (ERP)
- Vehicle maintenance data collection
- Feedback and reporting
This technology allows supply chain managers full control over each component of the process. Since the supply chain process is iterative, the SCADA network can enhance the process each time that goods are distributed.
Example of SCADA
Imagine that a company implements a SCADA system to oversee its supply chain and trucking process. The SCADA system discovers that a major time delay occurs due to transportation lag times. Therefore, the ERP functions of the computer system suggest alternative routes that decrease travel times and increase overall efficiency.
Advantages of SCADA Logistics
What is SCADA going to do for your company? A SCADA system brings many advantages to the logistics industry.
SCADA Is Scalable
Ordinarily, you’d have to have personnel who oversee data for each facility. But SCADA allows you to control the process at each facility without having to physically be at the individual locations. This interface provides limitless scalability, as well as the ability to access locations across geographic distances.
Data Monitoring
Real-time data monitoring gives you greater control over the process. Additionally, users can monitor the data from anywhere, which again allows you to monitor multiple facilities without being bound by geography.
Proactive Maintenance
Using the data from the SCADA network, an operator can identify trends and pinpoint small problems before they become major ones. This oversight also makes the SCADA system cost-effective since you’ll be spending less on avoidable maintenance.
Efficiency
Perhaps most importantly, a SCADA system greatly increases the efficiency of your supply chain system. That’s good for your bottom line, but the waste reduction also means you’ll achieve a higher level of environmental sustainability.
Immediate Impact
There’s little to no learning curve with a SCADA system, which means that you can implement this technology quickly and easily. As a result, the technology has an immediate impact on your system and can also bring about a boost in employee morale.
Disadvantages of SCADA
At the same time, there are some disadvantages to using a SCADA platform.
Unemployment Rate
For some companies, SCADA can eliminate jobs. With less need for oversight, there will be fewer available positions at your facilities. Other employees may feel alienated by the introduction of new technology into your warehousing and transportation systems.
Complex Systems
A SCADA platform will interface with just about every part of your supply chain. That means there are a lot of moving parts. Implementing a system of this magnitude can therefore be costly, which can be prohibitive for smaller organizations.
Vulnerabilities
Anytime you rely on a data network, you leave yourself open to security threats. A SCADA system can leave you vulnerable to outside hacks, data theft, and even foreign security threats.
Maintenance Cost
Both the hardware and software that comprise the SCADA system will need to be maintained. This maintenance includes software updates, as well as the replacement of the hardware that makes the system operational. These regular updates can be costly over time.
Restricted Software
A SCADA system relies on restricted software and certain hardware components. This setup means that performing maintenance won’t be easy, which adds to the overall cost. It also means that regular maintenance may rely on third-party providers, which may cause delays within your process.
PLC vs SCADA
Technically, some might consider a programmable logic controller (PLC) as a potential part of a SCADA system. But the difference lies in the nature of each component. A PLC is hardware, while SCADA refers to the software that runs the overall system.
Again, these components are often used together, but a SCADA can provide you with the direct user interface that operators will rely on as they use the system to oversee their logistics operations.
Improve Your Logistics Operations
SCADA can introduce a new level of supervisory control over your supply chain and logistics processes, though at an added cost.