Expert Session Supply Chain Must-Do’s for 2015
EyeOn hosted an interesting and inspiring expert session on Supply Chain Must Do’s for 2015. A number of leading companies in the process industry joined this session to exchange their main focus areas and challenges for 2015.
EyeOn has identified the following supply chain must-do’s for 2015:
- Prepare for lift in economy: setup a resilient supply chain that supports increasing volatility in your demand and secure an uninterrupted supply of raw materials. Invest in smart methods to anticipate on market changes and move beyond the ordinary forecasting models. Or focus on getting a flexible supply chain that can serve for a commodity and specialty market.
- True Integrated Business Planning: Many companies have setup an S&OP process. To make this a true Integrated Business Planning process to drive your business, imagine yourself the CEO. Does current S&OP process support your business in such a way that it support the strategic goals? This will enable you to make the IBP process a way to really steer your business
- Big data: Big data is a hot topic, what does it mean and how can it be used to identify upcoming trends in your market. Somehow it looks like a hype being claimed by software companies selling the newest software solution. We see the true value in doing the right data analytics on data sets. The value comes with the analysis, interpretation and what you do with the results. Within the process industry most value is seen in using data from various sources to predict market development and anticipate on future divestments and/or investments.
- Reshoring: starting last year, more and more companies started bringing manufacturing activities back to Europe/US. The offshore impact of long lead times and high inventory carrying costs were often underestimated. The optimal solution is not either or but require differentiated supply chains within your company. For company’s stable and mature markets, off-shored production assets will deliver efficient and optimal supply chains. Whereas for those markets that require high flexibility, having your production assets close to the market is often the best solution to beat competition.
- Smart mathematical modeling: the application of mathematical to create transparency and support decisions making can be very powerful. Companies in the last couple of years have invested in end-to-end planning tools to create transparency. They will now use these platforms to utilize powerful mathematical models to optimize their supply chains. Real-world decisions involve an overwhelming amount of detail, much of which may be irrelevant for a particular decision. Models allow the user to eliminate the unimportant details so that the user can concentrate on the relevant decision variables that are present in a situation. This requires a certain skill set, understanding and ability to interpret results. In the end, all models are wrong and reality is always right. In the hands of trained professionals, models are useful, you just need to know the pitfalls.
More information on the 2015 supply chain must-do’s is available in the below slide deck. If you would like to get in contact with us, you can reach us via:
Ieke le Blanc
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