Supply chain management Essay
This type of descriptive analysis Is used to assess current market position of the company & effectiveness of past decisions. It also can be used for Predictive analysis (Predicting the trends based on past performances) and Prescriptive analysis (for formulating optimization techniques & best outcomes including the effects of variability) In the aftermath of 2011 Fuchsia tsunami, Intel sent teams to Japan to help their suppliers. It’s the big data which gave them those early warning signals about the capabilities of their dependency on Japan’s suppliers which prompted them to do hat they did.
Supply chains, In a traditional way, respond to various factors but analytics is the tool which can sense & quantify responsiveness in the market. Using 1 OFF Manufacturers with operations in one country can sense the risks related to their suppliers in other countries based on Online & Social Media reports. Just imagine: an FMC manufacturer working with razor-thin margins, faced with highly volatile commodity prices on one side & price sensitive customer on the other.
Streamlining purchase price forecasts & developing operations plans using robust analytic tools into profit plans of the product with the customer would be the highest priority. Analytics in purchases of raw-materials include Adequate Business Insights – for timely deliveries, material costs etc. & also ranking of Vendors/Suppliers – quantitative estimation of the reliability, quality and quantity of the material delivered.
This can result in maximizing the efficiency of a company on supply side. An example of scorecard for a supplier is shown in Fig. – 1. Warehouse costs for an organization may be very high (as much as 20-30% of the reduce value) if the inventory is not managed properly. Front – End analytics like Data Mining, Data Visualization & Reporting can be used in Warehouse Analytics for forecasting optimum inventory stocks & detecting any obsolescence. The effectiveness can be measured through several Kips (Key Performance Indicators).
Storing & analyzing the effectiveness data of past decisions also can help taking crucial decisions pertaining to Warehousing of materials. Sales analytics helps in proportioning the products based on demand along with the hearts involved. They give the manager an understanding of the fragmented demand in the market. It also is interpreting the data on Income, Purchasing power of customers, advertising costs, prices of competitors and predicting future demand through regression techniques.
Bull whip-effect as depicted in the Fig-2, results in large amounts of inventories at every stage of supply chain. Demand forecasting analytic tools can be used by focusing on End-user demand through Point-of-Sale (POS) data collection, past sales scores & also considering different factors such as Advertising, Customers responsiveness to price fluctuations, length of distribution channels, downstream communication etc. Analytics in Supply Chain Management but Scope of analytics in Supply chain management is very huge & it’s only at a nascent stage in the present world; More to be explored. Hope the bouquet will be with the presenter, next time the anchor welcomes a guest onto the stage!!