from hindsight to action: control your supply chain using prescriptive analytics
TRANSCRIPT
FROM HINDSIGHT TO ACTION: CONTROL YOUR SUPPLY CHAIN USING PRESCRIPTIVE ANALYTICSBill BrazierUK Country Manager, Every [email protected]
www.everyangle.com
IDEA
PLAN
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FULFILL
SUPPORT
KNOW MORE. ACT FASTER. | 1
Ever since the term Big Data first appeared on the blogosphere, a more meaningful and increasingly autonomous future has been promised to its incumbents. Big Data analytics has rapidly become accepted as a new route to competitive advantage; providing new knowledge and insights directly into the hands of the people who need it most.
The rate at which technology continues to improve means organizations are starting to realize that the uses for data analytics are extensive and growing; moving above and beyond diagnostic and predictive purposes [1]. However, as an increasing number of organizations become fascinated by the prospect of doing more with external, unstructured data, it is easy to forget that highly accessible, strategic and valuable insights are trapped within their own four walls. Bernard Marr explains that the real value is not in the large volumes of data but in what we can now do with it [2].
The modern supply chain is continually inundated with complex data exchanges on a regular basis; data that if properly utilized will support and enable the execution of a company’s long-term business strategy. While big data grabs the headlines, small data still underpins the value chain. If an organization cannot regularly meet the demands of their value chain then future long-term strategies will go unfulfilled.
This eBook aims to show how, with the use of prescriptive analytics, actionable insight can increase control and improve the performance of the supply chain.
INTRODUCTION
…organizations are starting to realize that uses for analytics are
extensive and growing; moving above and
beyond diagnostic and predictive purposes
KNOW MORE. ACT FASTER. | 2
The modern supply chain is an increasingly complex and ever evolving beast, engaged in a constant battle to meet the needs of an increasingly demanding group of customers and consumers.
Supply chain professionals now face constant challenges on two fronts; firstly an increase in demand for innovation has led to shorter product lifecycles, increased range and greater complexity. Secondly, pressures driven from B2C companies such as Amazon have meant that good is no longer good enough. Customers now expect the same level of responsiveness and reliability across all industry types, meaning that performance that was considered best-in-class only ten years ago is now unacceptable. Customers are fickle and the ability to source product from elsewhere has never been easier. Recent Capgemini research shows that 73% of consumers would purchase a product from elsewhere if it were out-of-stock, whilst 89% are less likely to revisit a retailer who delivers an item at least one day late [3].
The extended, global nature of the supply chain has meant that disruptions such as cancelled orders, late deliveries, quarantined materials or production breakdowns now have a greater impact than ever before. These inefficiencies can increase working capital expenses by up to 10 percent, and can also severely impact cash flow totals [4].
In a recent study conducted by CSCO Insights [5], 65% of supply chains are thought to display above average levels of complexity, whilst 70% of respondents rated themselves as average or below in regards to process maturity for managing inventory. The weight of these complexities is leaving supply chain managers at the mercy of their ecosystem; unable to detect tomorrow’s problems they continue to grapple with issues they face today.
SUPPLY CHAINS: THE NEW STRATEGIC BATTLEGROUND
65% of supply chains are thought to display above average levels of complexity89% of
consumers are less likely to revisit
a retailer who delivers an item
at least one day late
