Cracking the Code on Supply and Demand
Short Takes...on Analytics
|Posted by Jerry O’Dwyer, Principal, Deloitte Consulting LLP|
Over the course of the past year, I have found myself having more and more conversations around the use of analytics in a company’s supply chain. What strikes me about this is that using data in the supply chain isn’t new – it is different. The logistical models that worked for the U.S. military during World War II are still valid, but we’ve come a long way. And, more importantly (and exciting) are the possibilities --from supply chain decisions being made via embedded analytical tools, with not a human in sight, to the use of simulation games to build the right level of analytical literacy that an organization needs to survive.
Many leading companies are finding ways to use analytics to better manage supply and demand (automatically extend offers and promotions to customers based on inventory?), analyze supplier risk (a huge push in the insurance industry too), and to take full advantage of sensors, like radio frequency identification (RFID). There are, of course, no shortages of challenges – wrangling the data that is available, gathering new data that can facilitate good decisions and making sure talent knows how to use it. From what I am seeing, companies that crack the code – or even open the door slightly – can reap huge rewards.
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