About 80% of supply and demand can be planned perfectly in advance. But how do you handle the remaining 20% that can never be predicted? The missed shipments, late materials supply, or the unexpected demand peak.
The answer is an agile supply chain. But what does that mean? Here are three ways to increase your supply chain agility.
Respond to demand in real time
Most organizations are forecast-driven rather than demand-driven. By using information technology to capture data on demand directly from the point-of-sale, best performing organizations are able today to instantly respond to demand. Companies should enable collaborative networks to orchestrate fulfillment with customers. Tying in suppliers closely with your business can remove latency and problems that can often occur at the supply chain boundaries.
By creating real-time visibility into planned and actual inventory across all channels your operational teams can make accurate fulfillment and delivery promises across multiple order channels and systems.
Dynamically balance supply & demand
Aligning planning data, processes, and execution across short- and mid-term orchestration time horizons in real-time allows companies to outperform their competition by swiftly reacting to any change in supply or demand.
For example, integrating real time customer demand data into the supply network enables allocating and prioritizing resources. Further integrating production planning with scheduling maximizes efficiency and agility. This allows companies to meet variable demand despite smaller lot sizes, and re-plan based on schedule changes to optimize complex shop-floor operations for throughput and overall equipment effectiveness.
Identify the impact of logistical events early on
By monitoring transportation and warehousing activities in real-time and receiving immediate alerts on abnormal events that will impact results along the entire supply chain, companies can resolve issues early and find the best alternatives, while lowering total operational costs, minimizing ad-hoc shipments and limiting excess inventory.
The key to building an agile supply chain is to have the right information at your fingertips in order to adjust your supply chain where necessary. Not less important is the ability to immediately calculate and understand the impact of events across your entire supply chain and make the optimal decisions.
Learn how ActivePivot’s in-memory analytics can help you Discover, Sense and Respond to unplanned demand and supply events.