Actionable Insights
Digitization, Visualization, AI, ML, and complex super-sophisticated algorithms are the most significant building blocks of future performance. Do you have a comprehensive, forward-looking strategy? What is Your supply chain strategy? Are there targeted solutions your organization is considering? Are there discreet steps you can take now to mitigate the effects of the next “Pandemic?”
“The adoption of technology without reference to an overall strategic framework is a waste of both scarce resources and market advantage.”
Do you consume or produce valuable data?
More and more BI solutions are entering the market promising real breakthroughs for your business success. With many companies struggling to make sense of their data, the promise of actionable insights sounds great.
Data overload
Actionable insights appear to be a missing link for companies that want to drive business outcomes from their data.
What most solutions offer is just more data and information, not actionable insights.
Data > Insights
To be clear, Data is the raw and unprocessed facts that are usually in the form of numbers and text. Information is prepared data that has been processed, aggregated and organized into a format that provides more context. Information is often delivered in the form of data visualizations, reports and dashboards. Insights are generated by analyzing information and that can be acted upon or information that gives enough insight into the future that the actions that should be taken become clear for decision makers
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Any way to enhance information sharing between members of the supply chain ecosystem — or more effectively synthesize and interpret it — should help your organization shift towards the end-to-end vision. Look for opportunities in both categories.
What is an end-to-end supply chain solution?
End to end (E2E) supply chain involves an entire integrated process. From product design and procurement of raw materials then scheduling, production and then final delivery of finished product to the customer. It is further extended to after-sales service and reverse logistics depending on the nature of the business.
Although the transformation will be a gradual evolution, spanning years (and perhaps decades), the changes will reduce or eliminate key pain points:
Connected: Lack of visibility keeps 84% of Chief Supply Chain Officers up at night. More sources of data and enhanced connectedness to information will alleviate this issue.
Intelligent: 87% of Chief Supply Chain Officers say that managing supply chain disruptions proactively is a huge challenge. Intelligent algorithms and prescriptive analytics can make this more actionable.
Automated: 80% of all data that could enable supply chain visibility and traceability is “dark” or siloed. Automated discovery, aggregation, and processing will ensure that knowledge can be formed from data and information.
Since the transformation is just getting started, best practices are few and far between.
How to optimize the end to end supply chain?
Demand (consumption) drives production. Optimization of inventory is necessary to meet demand.
Elements necessary to fulfill demand:
Strategic connection between commerce, operations & finance:
Incentives focused on increasing the bottom-line
Inventory rebalancing – (depends on inventory accuracy i.e. phantom inventory)
Daily sales aggregation by SKU/Location
Sales’ data analysis by category
Sell through and margin contribution
NOS (min/max levels)
DBM (continuous adjustment of safety stock)
Removing volatility from the chain – Can/how much volatility can be “controlled?”
Re-evaluating sourcing options (reshoring, nearshoring and owning/controlling production of critical items) When to consider vertical integration
Controlling logistics channels (owning, leasing, strategic partnerships)
redesign & optimize their customer portfolio, which led to visibility improvement, revenue increase and reduced transport costs;
implement a long-term sustainable methodology, which enabled a continuous portfolio elevation;
create transparency of the cost-to-serve elements to improve profitability with the use of the dynamic visualization tools;
build financial performance tracking reports based on the KPIs framework, which provided the leadership with transparent financial information regarding the customers and products profitability.
Elements of succes
If you changed the rules you are one of the happy few. Most are just trying to keep the SC rolling as over the past few decades supply chains have been reluctant to adopt technology and stayed within the comfort zone. As a result, a status quo where they heavily rely on manual processes and create work arounds in their ERP and steer on inefficient KPI’s.
We believe that the reinvention journey starts with a clear assessment to address your potential and role within the value chain so we can create a roadmap that will bridge the gap between your business strategy and the design of the whole value chain. Simply put, our clients yield better results from meaningful innovations and more effective processes.