Supply Chain Predictive Analytics
“If only I could have seen that coming, I could have saved a lot of money”.
If a company can look into the future and predict supply chain key performance indicators (KPI’s) it will understand what needs to be done in order to meet financial goals. Planning is the ability to look into the future and proactively change it. The plan provides the critical information that is required to generate the KPI’s of the future. Many things cannot be predicted, but the right KPI’s allow executives and managers to identify problems early, so that new plans can be created to get back on track. Creating a good plan is critical, but it also has to be communicated to all the stakeholders in the extended enterprise, including customers and suppliers to quickly get agreement and alignment. The plan then needs to be monitored by management to insure that the company is on track. Companies have shown if they combine better planning with better visibility and Predictive Analytics the impact on profits and Return-on-Assets would be significant. To accomplish this Supply Chain models are a critical component of predictive analytics.
Adexa Predictive Analytics solution solves this problem by providing a supply chain planning system of record with hundreds of ready-to-go KPI’s, complete with formulas and calculations. It can be deployed with any of the Adexa planning solutions on the demand or supply side, or it can be utilized as a stand-alone solution for predictive analytics. Plans from Adexa’s Demand Planning, S&OP, and Supply Planning modules provide a forward looking prediction of company’s performance that can be compared to actual performance. The system can be extended by adding customized KPI’s, data, or measures. Each stakeholder can personalize their view of the “future” by bringing together reports, metrics, analytics, and scorecards based on their role and authority, whether operational or financial. Amongst other measures, the robust library of data and metrics includes:
• Financial (Revenue, Operations cost, Inventory costs)
• Demand (Forecast Accuracy, Fill Rates, Order lead-times)
• Production and Distribution (Plans and Conformance)
• Inventory (Days-on-hand, Slow-moving, Inventory Turns)
• Resource (Capacity, Utilization, Loads)
• Purchasing (Quantities, On-time performance, Quality)
All for what to expect and the potential impact of any risks that the company might be exposed to. In addition, the users can perform what-if analysis to examine sensitivity analysis and or simulate various events and examine how robust the supply chain is when (say) the demand increases or a transportation route is cut off or a supplier cannot deliver.
To learn more about Adexa’s Supply Chain Predictive Analytics & Performance Management solution, please call our Sales Dept @ 310-642-2138 or email inquiries to email@example.com
A white paper on how Adexa solutions make suppliers and contract manufacturers more responsive, and accountable.
Although the economic recovery is well underway, a pragmatic approach needs to be taken when analyzing supply chain solutions. Proof of implementation scenarios need to document the time they’ll take to achieve objectives, the return on investment period and their overall impact on manufacturing assets.
One way to define intelligence is the ability to predict the outcome of different circumstances and/or construct a scenario to get the desired outcome. If all the situations are pre-defined and outcomes are pre-established then this would require less or no intelligence.
The word “intelligent” is used commonly to indicate how well a software package was designed to respond to different conditions. The more conditions it is programmed to handle, then the more, so is claimed, intelligent is the software package.
If the next 10 years bears even the same kind of growth and innovation that we have experienced in the past decade, then we are going to be witnessing an incredible era in transformation of supply chains and how the age of real-time connectivity will create virtually instant delivery of what we desire.
You don’t have to be an evolution scientist or even a believer to know that being big does not necessarily imply strength and endurance. I t does not even guarantee survival.
1st generation SCP systems were factory planning systems or APS, introduced in mid-80’s followed by supply chain planning as the next generation. More recently the 3rd generation introduced sales and operations in an integrated environment which was later improved to the 4th generation by adding financials into the equation forming the 4th generation of SCP systems.
Predictive analytics looks at the patterns of the past and predicts the likelihood of an event in the future. In addition, pattern recognition can be used with the use of AI techniques and topology to find relationship between different variables and how one can cause the other.
Adexa’s technology is now deployed for Seagate’s purchasing, production, and distribution planning, across operations expanding over five continents
Learn how a global manufacturer of fabrics and apparel is using Adexa’s Predictive Analytics to gain insight into their future potential and risk