Does Your Company Have the ‘Right Stuff’ to Embrace Advanced Analytics?

By: Henry Canitz – Director Product Marketing & Business DevelopmentPicture1

John Glenn became the first American to orbit the Earth on Mercury-Atlas 6 on February 20, 1962, just a few days after I was born. I grew up watching the Apollo Space Program launches including the six launches that sent humans to the moon and back. Like many kids back then I dreamed of being a test pilot and an Astronaut. I partially achieved that dream by becoming an Aerospace Test Engineer and working at Edwards Air Force Base where many of the early test flights by Chuck Yeager, Scott Crossfield, and other’s took place. On February 6, 2018, 56 years after John Glenn’s historic launch, SpaceX launched their Falcon Heavy rocket with Elon Musk’s Tesla Roadster and a dummy named Starman on a journey into the solar system. The Falcon Heavy is a new class of rockets that may allow man to colonize Mars and beyond. Today, space launches are routine with launches happening on a monthly if not weekly basis. Exciting stuff for someone who dreamed of being an astronaut.

It is also an exciting time to be a Supply Chain Practitioner. Like space exploration, the supply chain has become significantly more complicated over the last 25 years. Technological advances have simplified and automated a lot of routine processes while opening up entirely new opportunities. These new frontiers require advanced capabilities to drive business value such as cost reduction and customer service improvements. Analytics, for example, today is a routine part of a supply chain professional’s job. We can now analyze the end-to-end supply chain and quickly determine the best path forward. While speaking with practitioners at industry events it is quite apparent, some supply chain teams have the ‘Right Stuff’ to fully embrace advanced analytics while others are just beginning their journey.

Moving up the analytics maturity curve takes a combination of the right talent, processes and enabling technology. Unfortunately, the people component is often not adequately addressed. As supply chain planning incorporates more data, supply chain roles need to be redefined to support analysis and decision making. Just as Chuck Yeager had to acquire new abilities and skills to break the sound barrier, companies have to define new skills and roles to meet their envisioned advanced analytic enabled processes.

Below are a few of the new analytic roles for leading supply chain teams today:

  • Business Analyst: understands business needs, assesses the business impact of changes, captures, analyses and documents requirements and communicates requirements to relevant stakeholders.
  • Supply Chain Analyst: responsible for improving the performance of an operation by figuring out what is needed and coordinating with other employees to implement and test new supply chain methods.
  • Artificial Intelligence Specialist: work on systems that not only gather information but formulate decisions and act on that information. Software that determines Sentiment from Social Data is one example of the work of Artificial Intelligence Specialists.
  • Data Scientists / Big Data Analyst: analyzes and interprets complex digital data, such as the usage statistics of a website, especially in order to assist a business in its decision-making.
  • Database Engineer: responsible for building and maintaining the software infrastructure that enables computation over large data sets.

As our enterprise systems continue to produce volumes of data, we need to make smart decisions faster to drive the business forward. Does your current team have the ‘Right Stuff’ to embrace advanced analytics? What new roles do you need in your supply chain team? How should your team be organized to efficiently run the business while also driving innovation? Are your current supply chain systems sufficient to leverage new data sources and enable advanced analytics? Can you automate routine activities? These are just a few of the questions you should ask as you embrace all that analytics has to offer to keep your supply chain team engaged in value-creating activities.

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About the Author:

Hank Canitz Picture

Henry Canitz is The Product Marketing & Business DevelopmentDirector at Logility. To read more of Henry’s insights visit www.logility.com/blog.

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Building the Business Case for Digital Transformation of Supply Chain Planning

It seems like the phrase “digital transformation” is everywhere these days. There are as many definitions for digital transformation and articles on the subject. I like the definition provided in i-scoop’s online guide to digital transformation.

“Digital transformation is the profound transformation of business and organisational activities, processes, competencies and models to fully leverage the changes and opportunities of a mix of digital technologies and their accelerating impact across society in a strategic and prioritised way, with present and future shifts in mind.”

The digitisation of a supply chain involves creating a detailed data model that mirrors the intricacies of an actual end-to-end supply chain network. (Learn more in Technology Evaluation Center’s report, The Impact of Digital Transformation on the Supply Chain.) Done right, a digital twin will have enough detail to model the information, money, and product flow from acquisition of components, through production, distribution and fulfilment to the customer. Model element include forecasts, capacities, inventory positions, lead-times, resource availability, costs, revenues, and profits. Finally, the model needs constant updates of customer, production, purchase, and distribution order status to ensure analysis and resulting actions reflect what is currently happening in the physical supply chain.

The benefits of digital transformation are plentiful. Below are three tangible benefits of digitally transforming your supply chain:

Process Automation:

A very visible benefit of building a digital twin of your supply chain is the ability to use the information to automate routine process steps and free up resources to work on more value-added activities. Advanced supply chain systems have exception-based workflow and active alerts that when used in conjunction with user-defined limits can automatically process purchase, manufacturing, distribution and customer orders. Human intervention only takes place when plans, transactions, orders, etc. fall outside of defined limits.

Continuous Planning & Optimal Response:

Digitization of the supply chain unleashes the full capabilities of today’s powerful supply chain solutions leading to game changing competitive breakthroughs in customer service and value creation. One such capability is the application of algorithmic optimization in the areas of demand, inventory, supply, manufacturing, and transportation planning. The rich supply chain data available through a digital twin provides the foundation and inputs required for effective algorithmic optimization.

Another advanced supply chain capability is continuous planning. A supply chain digital twin contains up-to-date information on capacities and transactions. As new events take place (for example a new customer order, or a delayed replenishment) a planner can quickly determine an optimal response. Continuous planning and optimal response capabilities often lead to reduction in costs (manufacturing, inventory, transportation) and improvements in customer service (fill-rates, cycle-times).

Advanced Analytics:

Often the largest benefits from digitizing the supply chain come from new insights gained from the ability to conduct in-depth end-to-end analysis. The ability to analyze expected demand versus capacitated supply and determine financial impacts of multiple “what-if” scenarios provides the information needed to head off potential risks and fully embrace opportunities. A digital twin of the supply chain provides the information needed to make smart decisions on when to enter new markets, where to introduce new products, when and where to increase production capacity, and how to effectively compete. A digital twin provides a rich environment for running “what-if” scenarios of likely disruptions to determine the appropriate response before they happen. When the disruption does take place, a pre-established plan can be executed beating competitors to market.

How might a digital supply chain transformation change your daily life?

  • You have real-time, accurate information, eliminating the need for data manipulationPicture1blog
  • Collaboration on actual supply chain activities is online and in real-time
  • “What-If” scenarios and simulations are automatic, intelligent and include sufficient data to make informed decisions
  • Supply chain decisions move from calendar driven to continuous optimal response

A digital transformation of your supply chain can help you harness visibility, velocity and value and allow you to compete and win in today’s competitive marketplace.

To learn more about digital transformation, read Technology Evaluation Center’s report, The Impact of Digital Transformation on the Supply Chain.

 

About the author 

Hank Canitz PictureHenry Canitz is The Product Marketing & Business Development Director at Logility. To read more of Henry’s insights visit www.logility.com/blog.