BY URBAN KINDSTRÖM AND DANIEL LARSON
Download the English PDF version here
When LINAK decided to digitize its entire supply chain, the goal was clear: the highest possible level of service and control at the lowest possible cost. But getting there involved navigating technical challenges, global supply chains, and new ways of collaborating.
For us at PipeChain, it became a shared journey toward something greater—one that gave us the opportunity to demonstrate what true supply chain orchestration can actually mean. When we at PipeChain first began working with LINAK, they were facing a challenge familiar to many global companies: how to manage a complex supply chain with over 20 subsidiaries, hundreds of suppliers, and just as many customers—all with different systems, processes, and procedures. Creating transparency, efficiency, and, above all, collaboration in such an environment requires both courage and a clear vision. And LINAK had both. The goal was to digitize the entire supply chain—from forecasting to delivery and from supplier to customer—to achieve maximum control and service at minimal cost. An ambitious undertaking, but also a clear path toward the future.
From Reaction to Orchestration
In articles we’ve previously published about our work with LINAK, we described the journey based on Gartner’s model: Reacting – Anticipating – Collaborating – Orchestrating. This is a way to illustrate how companies move from dealing with problems as they arise to proactively managing their entire workflow in real time, with all parties synchronized. Today, LINAK has taken major strides in that direction. Because PipeChain serves as a common digital communication hub for all trading partners, including freight forwarders, much of the complexity has been eliminated. More than 85 percent of purchase order lines are now handled entirely automatically via our cloud platform—from order responses to invoicing—directly integrated into LINAK’s ERP system. In addition, over 80 percent of all international shipments are monitored with real-time status updates such as ETD and ETA. And perhaps most importantly: suppliers and carriers are automatically evaluated based on process-critical KPIs, providing insights that lead to even smarter workflows. The result? A significantly higher level of service and faster response times at a lower cost than before.
Step by Step Toward Full Transparency
The digital transformation began on a small scale. One manufacturing site and five suppliers were first connected to digitize the entire forecast-to-delivery process. This laid the foundation for something bigger. In the next step, all subsidiaries and their more than 250 suppliers were connected. Forecasts, inventory data, and demand became visible to everyone, which fostered not only control but also trust among the parties involved.
Then came several more steps:
• VMI (Vendor Managed Inventory) was introduced to some extent.
• The transportation management system was developed in collaboration with three major freight forwarders.
• And digitization also extended to customers, with EDI flows and automated PDF conversions.
About 20 percent of sales order lines are already fully digitized, and that percentage is growing rapidly.
A journey that requires leadership
We often say that technology is only half the journey. The other half is about people—about vision, courage, and perseverance. LINAK is a clear example of this. Driving such a comprehensive digital transformation requires both visionary leadership and a strong determination to succeed. Success comes not only from more efficient systems, but from a culture where the entire organization and its partners share the same vision. For other companies just getting started, the advice is clear: involve the entire supply chain—both suppliers and customers—right from the start. When everyone sees the benefits of sharing information digitally, something happens. Suddenly, workflows can be improved collaboratively, and the gains are immediate.
Moving Forward, Toward the Supply Chain of the Future
LINAK has made great strides, but the journey continues. The next step is to fully implement the VMI process for a few suppliers and achieve an even more seamless orchestration from supplier to end customer. For us at PipeChain, this also raises broader questions about future planning, the role of technology, and how collaboration can drive competitiveness in a world where supply chains are becoming increasingly interconnected.
A Look to the Future
We see planning and optimization as the very heart of future competitiveness. The companies that succeed in connecting their entire network and making their flows visible, smart, and self-optimizing will be the ones that win. In five to ten years, supply chains will not only be digitized but also self-learning and self-optimizing. The boundaries between customer and supplier will blur, and collaboration across the entire chain will become even more integrated. Adaptability, collaboration, and resilience will be crucial. Our role is to be the driving force at the center—the one that provides the knowledge, intelligence, and tools to make this possible. We also see how self-learning models and AI-driven analytics will transform how companies plan and optimize their workflows. The technology is tailored to each company’s unique needs, opening up entirely new possibilities for efficiency and predictability.
Advisors in Close Partnership
But technology is only part of the picture. Our role as a partner also involves providing guidance and staying closely involved. Many of our customers’ challenges aren’t always apparent from the start, but by working together, we can identify solutions and bring about real change. When everything is interconnected—workflows, people, and decisions—we aim to be the partner that helps companies build a supply chain that is efficient, predictable, robust, and self-managing.
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Urban Kindström is the Chief Revenue Officer at PipeChain
Daniel Larson is a supply chain consultant at PipeChain
