Supply Chain Analytics

Drive measurable Business Impact

DR DV Ramana
Wissen Infotech
Hyderabad
drdvramana@gmail.com

Supply Chain Analytics

When data available is rich in content and relevance, we leverage our
expertise in statistical and advanced data-mining techniques
Segmentation,
Clustering and Factorisation
Predictive analytics and
Operations research to aid in smarter decision making.

United Breaks Guitar

Analytics Techniques

Probable Solution methodology

Supply Chain Optimization

Supply chain optimization has become a key strategic planning tool for any organization.
The entire delivery mechanism from point of production to point of consumption needs to be optimized to ensure
there is no wastage in the process.
The cut throat competition is e-commerce companies makes it imperative for them the least cost and timely delivery
without affecting the quality

Important Areas of Supply Chain Analytics

Capacity Planning
Finding the capacity of a supply chain or its elements
Identifying and eliminating bottlenecks
Typical employs iterative analysis of alternative plans

Demand Supply Matching

Determine the intersection of demand and supply curves and optimize the
inventory
Minimise overstocks and stock outs
Typical involves issues as arrival processes, waiting times and throughput losses

Important Areas of Supply Chain Analytics

Location Analysis
Optimization of Locations for stores. Distribution centers, manufacturing plants etc.
Increasingly uses geographic analysys and digital maps (ex. Relate company location to Customer
location)

Modeling
Create models to simulate, explore, contingencies, and optimize supply chains

Important Areas of Supply Chain Analytics

Routing
Finding the best path for a delivery vehicle around
Identifying and eliminating bottlenecks
Typical employs iterative analysis of alternative plans

Scheduling
Creating a detailed schedules for the flow of resources and work through a
process.
If scheduling models are FINITE, then they take the factory capacity limits into
account when scheduling orders

Supply Chain Analytics Optimized Business Process

Retailers are able to optimize their stock based on predictive models generated from

Social media
Web search
Weather forecast

Supply chain mostly depends

Speed
Net work
Accuracy

Supply chain helps a business track where products are and where they have
come from
Supply chains are rich places to look for competitive advantage, partly because of
their complexity and partly because of the significant role they play in a companys
cost structure.
With the power of new analytics, companies can now fine-tune their supply chains
in a way that simply werent possible in the past.

Why supply chain analytics?

Transform data into real-time, predictive insights
Commodity volatility, changing demand forecasts, and supplier-specific challenges have affected nearly every organization
including those with the leading managed supply chains in the world.
Even top supply chain performers have faced embarrassing stock-outs during periods of unanticipated demand in recent years.

A big reason for this kind of underperformance is the fact that supply chain visibility and analytical models are
typically grounded in hindsight.
Making decisions based only on what happened in the past no longer provides competitive advantage.

Supply Chain Analytics Volume, Velocity vs Variety

Results companies have achieved using big data analytics

How current tools and technology support

companies use of Big data

Why supply chain analytics?

Transform data into real-time, predictive insights
Commodity volatility, changing demand forecasts, and supplier-specific challenges have
affected nearly every organizationincluding those with the leading managed supply chains
in the world.

Even top supply chain performers have faced embarrassing stock-outs during periods of
unanticipated demand in recent years.

A big reason for this kind of underperformance is the fact that supply chain
visibility and analytical models are typically grounded in hindsight.
Making decisions based only on what happened in the past no longer provides
competitive advantage.

Benefits
Insights that make a difference
Use historical enterprise data to feed predictive models that support more informed
decisions

Identify hidden inefficiencies to capture greater cost savings

Use risk modelling to conduct pre-mortems around significant investments and decisions

Link supply chain models to customer and pricing analytics to clarify the whole
profitability picture, not just the parts and pieces

Supply Chain Analytics Key Deliverables

Reduce inventory and release cash

Optimize freight utilization by improving loading levels and routing, reducing cost to serve and improving service levels
Eliminate wastages and improve margins
Improve forecast accuracy
Improve forecast accuracy

What next Supply chain Analytics

Supply chain improvements happen both from the bottom up and the top down.
When you consider near-term value delivered, tackling one specific problem after another is a good
way to make progress.
But without the foundation of a strategic supply chain agendaone driven by business goals
those solutions may not add up to the performance improvements you are looking for.
Be sure to spend enough top down time to provide alignment across different investments.

A commitment to supply chain improvement is easy to makebut

challenging to execute.

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KPIsINVENTORY OPTIMIZATIONWhat inventory buffers should I hold and where should I position?
Segmentation for tailored fulfillment strategies

Safety Stock Recommendations

Inventory Budget Optimization

Inventory Costs

Customer Service Levels

REPLENISHMENT PLANNING ANALYTICSWhen, what and where should I ship?

Relenishment plans by DC, retailer DC, distributor

Optimize for transportation and ensure feasibility to address handling, storage and warehouse constraints

In-store Availability

Customer Service Levels

SUPPLY CHAIN METRICS MEASUREMENT AND REPORTING How is my supply chain performing and where should I improve?
Definitions of balanced KPIs & goals aligned to function areas & strategy

SMART metrics: Specific, Measurable, Actionable, Relevant, Timely

All Supply Chain KPIs

DEMAND ANALYTICSWhat is my demand forecast and how is it tracking with retail sales?
Point of sale based forecasting at Retailer / DC / Store level

Deviation analysis between Forecast vs. Actual sales, which stores, which SKUs

Forecast integrated with promotion plans, competitor actions etc.

In-store Availability

Forecast Accuracy

Lost Sales

NETWORK PLANNING & OPTIMIZATIONDo I have the right network and the optimal network flows?
Number and locations of manufacturing facilities, warehouses etc.

Optimized flow paths to fulfill customer demand at lowest total cost

Variable Cost