The supply chain operations are vast and immensely complex which boils down to many levels of functioning in company which encompasses the following structure for providing the right value chain. The apparent changes can be seen in the sourcing, manufacturing and finally the distribution and logistics. Application of the analysis will result in an operational efficiency, clarity in decision making process at operational levels by providing data backing solutions even in tactical levels. Make use of supply chain analytics software.
The supply chain has hurdles such as
- There may not concur between the planning levels and execution parts.
- You may not get real time data in your hands as there is no agreement of perceptions in the running of the channels of communication.
- Does not have an efficient system to keep track of safety stock levels and this causes running out or having excess.
- Since the channels of communication are weak, will result in an indecision on how place the cost to serve the customer service levels ending in loss of revenue.
- The rise and fall of prices and finding it hard for de-risking.
- The imbalance in production line which does not make use of optimum utilisation of the resources resulting in wastage.
How the analysis corrects the above problems
- Decreasing the amount of stock and releasing funds.
- Increase the growth and better the fill rates.
- Avoid loss by wastage and make up the margins by accurately predicting the requirements.
- Providing better service levels to the customer.
- The cost involved in serving the customer should be reduced.
- The supply chain has to better channels for it to function smoothly at all levels.
- Find out the reasons for shortage and excess of inventory at all points in the supply chain.
- The proper and optimum utilisation of the freight sources during the loading and routing phases will help save cost.
- The working out of an efficient feasibility of the logistics will help at making decisions on the costs, risks involved and the returns of the whole manoeuvre.
There is significant growth in revenue of the business by using the predictive modelling method which helps to concur the sources for demand and supply. The execution level is also taken care of by optimising the efficiency levels. When you get the mathematics of the stock right then your working capital will be in advantageous position. The inventory data is thoroughly scrutinised for any discrepancies. Buy the supply chain analytics software.
Risk management is a very serious affair to deal with, predictions alone wont help you out. If you have efficient data backing all your analysis and observation, concrete steps can be put forward for processing. Rumours and previous experiences don’t help much in the ever-changing market. Your business scenario will show good growth at financial and operational levels. The supply chain partners must be analysed to find out all the risks involved so that there will no continuity issues and loss of revenue in the process of not analysing this piece of information.