Automated Value Stream Optimization

Overview

Automated Value Stream Optimization

Automated Value Stream Mapping (VSM) tools leverage AI and data integrations to rapidly generate detailed visual maps that encompass both physical movements and decision processes within a supply chain in order to identify and eliminate non-value adding activities or waste. These tools can prompt human users to fill gaps or validate information, then perform deep analysis of performance metrics (e.g., lead times, financial impact) to identify sub-optimal value streams and suggest improvements.

Benefits

Inventory Reduction

Profit Optimization

Reduce Stockouts

Revenue Increase

Working Capital Optimization

Deep Dive

Traditional Value Stream Mapping

Traditional value stream maps have historically been created manually, involving extensive workshops, human observation, and considerable effort from cross-functional teams. This approach typically requires significant time investment, can be prone to human bias and inaccuracies, and often provides only a static snapshot of the supply chain.

Challenges associated with traditional VSM include:

  • Time-intensive data collection and validation from multiple disparate sources.
  • Limited ability to reflect real-time dynamics and changes in processes.
  • Difficulty scaling across complex or geographically dispersed operations.
  • Low frequency of updates resulting in outdated insights and missed optimization opportunities.

AI-Enabled Supply Chain VSM

By integrating advanced AI, including generative AI, with robust data and system integrations, Automated VSM tools deliver substantial enhancements to traditional methods.

Comprehensive data integration

Automated VSM tools integrate structured data from sources such as:

  • Enterprise Resource Management (ERP) systems
  • Warehouse Management System (WMS)
  • Transport Management Systems (TMS)
  • Manufacturing Execution Systems (MES)
  • Quality Management Systems (QMS)

Additionally, these tools utilize generative AI capabilities to incorporate unstructured data from SOPs, supplier contracts and regulatory filings. The HASH platform specializes in synthesizing structured and unstructured data into comprehensive, trustworthy, knowledge graphs.

The integration of diverse data sources enables clear visibility into both physical movements (goods, materials) and decision-making processes (approvals, inspections, planning decisions), meaning bottlenecks and performance trends can be easily identified and resolved.

AI-Driven Mapping & Analysis

Machine learning and generative AI automatically identify and visualize both known and hidden supply chain activities, such as bottlenecks, inventory accumulation points, excessive transportation movements, delays in decision-making, and redundant steps.

These AI-driven maps are then analyzed using predictive and prescriptive analytics to:

  • Calculate accurate lead times, cycle times, and financial impacts.
  • Model scenarios rapidly to highlight optimization opportunities (e.g., cost reduction, improved service levels, carbon footprint minimization).
  • Identify inefficiencies proactively, prompting human validation or further investigation.

Human-AI Collaboration & Copilot Capabilities

AI-powered copilots embedded in automated VSM solutions enable practitioners to interact naturally with maps using plain-language queries and instructions. Users can request automated analyses, such as "Identify root causes of delays at warehouse A" or "Suggest alternative routing scenarios to reduce lead times. What is the projected annual cost increase as a result of this change?"

This human-AI collaboration improves accuracy and efficiency, enabling rapid validation, refinement, and improvement of value stream maps, even as conditions evolve.

Enabling Optimization & Redesign

Automated VSM tools support continuous optimization through detailed performance analytics. By calculating financial, operational, and sustainability impacts, AI-driven VSM facilitates data-informed decisions about network redesign, inventory positioning, transportation strategies, and workflow improvements.

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Implementation & Enhancement

Selecting A Solution

Important considerations when deploying Automated VSM tools include:

  • Data Quality & Integration: Ensuring accurate data flows from existing systems (ERP, MES, TMS, WMS).
  • Human Oversight & Validation: Establishing roles for practitioners to confirm AI-generated details and fill critical gaps.
  • Scalability & Flexibility: Tools should be easily scalable across global or complex operations.
  • Cybersecurity & Data Privacy: Robust controls to safeguard sensitive operational and financial data.
  • Continuous Improvement Capability: Built-in reinforcement learning to refine maps and analytics continuously based on user feedback and new data.

Roadmap to Value

A typical Automated VSM deployment leveraging AI would proceed as follows:

  • Baseline & Integrate Data: Connect ERPs, TMS/WMS, MES, IoT, and other structured/unstructured data sources.
  • Launch Automated Mapping: Initial AI-generated value stream maps with human validation.
  • Add Performance Analytics: Lead-time analysis, waste alerting , financial impact modeling.
  • Embed AI Copilots: Interactive querying and prescriptive recommendations.
  • Implement Continuous Optimization: Regular scenario modeling, proactive alerts, and automated redesign recommendations.
  • Expand to Strategic Dimensions: Sustainability, resilience, and broader strategic analytics integrated into decision-making processes.

HASH provides an open-source platform uniquely positioned to created automated VSMs through deep integration of source data, and AI. Designed for ease of use, adaptability, and scalability, HASH enables rapid implementation and ongoing optimization of supply chain networks. To find out more about our platform, visit hash.ai or contact us to learn more about how our technology and services can support your supply chain.

Deploy our team within your organization

Our engineers and solution architects come from top tech firms such as Google, and consultancies like McKinsey. They work within your organization to deliver solutions atop HASH’s platform that deliver real business value.

Solutions as pilots

All solutions are delivered as 12-18 week pilots, parallel run alongside existing systems and processes, with KPIs tracked

Long-term support

Unlike traditional consultancy-led pilots, we maintain our solutions post-delivery and code is typically open-source

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Requirements

Prerequisite Data

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