Supply Chain News

Is Prescriptive Analytics Really Going To Disrupt How Supply Chains Evolve?

Research institutions like Gartner recognize that prescriptive analytics has the potential to improve decision making in the supply chain, and yes, prescriptive analytics is going to disrupt supply chains.

In a time when the term ‘disruptive’ is being over-used I find myself increasingly using the term when describing the impact of our product to clients and prospects.

It’s uncomfortable because prior to starting with AIMMS two years ago, I spent 20 years in consulting and IT services and experienced many terms being over-used (such as ‘optimized’ or ‘disruptive’).

I promised myself that I’d endeavor to never use a meaningful term in a superficial way.

So this morning, I woke up early and over breakfast thought I’d challenge myself on the use of the term and explore if I can continue to use it with sincerity…I thought I’d role play a Chief Supply Chain Officer for a large global manufacturer:

First thing. I’m a big fan of Prescriptive Analytics but does this mean I dump Enterprise Resource Planning (ERP)? Absolutely not. I’m totally convinced of the value of ERP and how it helps large organizations automate large volumes of work for back office and generic processes.

Chris Gordon

“Prescriptive Analytics is going to disrupt supply chains”Chris Gordon,
VP North America at AIMMS

What I am going to do, however, is limit ERP exclusively to what it does well: large volume generic transactions. It’s going to allow me to reduce implementation costs by half and double implementation speeds while reducing my risk of failed implementations to near zero.

Second thing. I’m going to build a supply chain analytics center of excellence. I’m going to do that so I can continue to expand my use of the vast sets of data that have come online in my business in the last few years – which I’ve paid to have available but haven’t yet exploited.

Third thing. I’m going to take my long list of projects and initiatives that have an identified business case but are currently bogged down with high forecast implementation costs, and I’m going to prioritize initiatives that result in business action. These are projects that by nature provide processes and technology that furnish business users with a recommended action – it’s Prescriptive Analytics.

I’m going to triage these initiatives so that I’m starting with high benefit opportunities that I can implement quickly while minimizing business risk. I’m going to use a Prescriptive Analytics technology that I can leverage to build my own applications quickly. I will include a constraint that no single initiative can take more than 50 days to build and implement before delivering business value. I’m going to repeat this process many times over.

Is it disruptive? Well let’s see:

  • My ERP implementation costs have been reduced by half
  • My speed to implement ERP has doubled
  • My ERP maintenance costs have halved. I’m becoming able to move to cloud services and generic functionality that removes the upgrade burden
  • My competitive differentiation is encapsulated in Prescriptive applications that were each built and value creating in 50 days or less
  • My team has the capacity, capability and tooling to pump out additional differentiation every quarter. It is having a material impact on sales and margin
  • Business change adoption in operations is almost immediate. My operations team is part of the solution build and they get a solution that they understand, helped create and welcome

Many of our prospects have a hunch that these benefits are available and take the time to explore a Proof of Concept with AIMMS. Many of our clients are already experiencing these benefits.

Yes, I’m going to continue saying that Prescriptive Analytics is going to disrupt supply chains and the nice thing is, I’m not alone. Research institutions like Gartner also recognize Prescriptive Analytics’ potential to improve decision making in the supply chain. If you’re interested in learning more about this type of Advanced Analytics, I highly recommend reading the Gartner Hype Cycle for Chief Supply Chain Officers 2016. You can get a complimentary copy courtesy of AIMMS on this page (available for a limited time).

Optimization Technology as a Catalyst for Supply Chain Innovation


Article Topics
Best Practices   Supply Chain   Supply Chain Optimization   Analytics   All topics


Comments
Be the first to post a comment.
You must be logged in to post a comment. Login.

 
Latest Supply Chain News
Amazon Selects New York City and Northern Virginia For Its New HQ2 Locations
Amazon to invest $5 billion and create more than 50,000 jobs across the two new headquarters and announces Nashville as new Operations Center of Excellence with more than 5,000 jobs.

It’s Time to Review and Minimize the Ever Increasing Threat of Cargo Theft
Although many businesses prefer not to report incidences of theft, the Federal Bureau of Investigation (FBI) estimates that North American cargo losses amount to roughly $40 billion annually...and the…

SAP SE to Acquire Qualtrics International for $8 Billion
Under the terms of the agreement, SAP will acquire all outstanding shares of Qualtrics for US$8 billion in cash, SAP has secured financing in the amount of €7 billion to cover the purchase price and…

Control Towers for CFOs: Aligning Finance and the Supply Chain in the Extended Enterprise
CFOs must balance conflicting demands as they make reinvestment decisions that facilitate ethical, sustainable growth while maintaining a disciplined drive for operational efficiency and short-term shareholder…


 

24|7 Pro Team

The 24|7 Team is your direct pipeline to solutions for your business challenges. It's your opportunity to have supply chain and logistics experts look at your specific challenges and needs, and give you free, no-obligation advice, solutions, and information.

The 24|7 Team will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

1
  Choose a topic for your RFP

Transportation RFP/RFI

The Transportation RFP is your direct pipeline to solutions for your transportation challenges. It's your opportunity to have logistics experts look at your specific transportation challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect software or system can be an indomitable challenge. Using this transportation/TMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

Warehouse/DC Management RFP/RFI

The Warehouse Management Systems (WMS) RFP is your direct pipeline to solutions for your WMS challenges. It's your opportunity to have logistics experts look at your specific WMS challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect WMS solution can be an indomitable challenge. Using this WMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your WMS Request for Proposal list.

Supply Chain RFP/RFI

The Supply Chain RFP is your opportunity to have logistics experts look at your specific challenges and needs, and receive free, no-obligation advice, solutions, and information. It simplifies finding a pool of likely partners, building your knowledge base, and preparing your Request for Proposal list. The companies in the Logistics Planner have agreed to respond to your request for in-depth information and follow-up, and your request is totally confidential.

Software/Technology RFP/RFI

The Software/Technology is your direct pipeline to solutions for your logistics information technology challenges. It's your opportunity to have logistics experts look at your specific technology challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request. Whether it's WMS, TMS, Mobile or Cloud, our pros can help.

The companies listed below have agreed to respond to your request for in-depth information and follow-up. Your request is totally confidential.

Executive Education RFI

The Logistics and Supply Chain Education RFI can help you identify the schools, coursework, continuing education, distance learning and certification opportunities available from leading logistics educational institutions.

Upgrade and improve your logistics and supply chain skillsets. Whatever route you choose—advanced degree, executive education, certification or distance learning—the time and money you invest in your education today can pay off in continued career success tomorrow. Contact leading universities and professional institutions for the information you need to prepare for the future.

Third Party Logistics RFP/RFI

This 3PL Request for Proposal (RFP)/Request for Information (RFI) can help you find the 3PL and 4PL providers that can meet your specific 3PL service challenges and needs. The 3PL companies below will provide free, no-obligation third-party logistics advice, solutions, and information.

Ask your 3PL questions, you'll get answers. Simply complete the information, and detail your 3PL challenges. Then, check off the third-party logistics companies that you want to review your request.

1. Choose an RFI topic.
2. Enter your contact information and challenge.
3. Select companies and optional categories.
4. Submit.


2

Your Information



Your Challenge, Problem or Request *

3

Select Transportation Companies

  • Select All

  • 3Gtms
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • One Network
  • Pitt Ohio
  • Purolator
  • Quintiq
  • SEKO Logistics
  • SMC3


Select Relevent Categories

  • Air Freight
  • Intermodal
  • Motor Freight
  • Ocean Freight
  • Rail Freight
  • TMS

Select Warehouse/DC Management Companies

  • Select All

  • 3PL Central
  • Apex Supply Chain Tech.
  • Honeywell Intelligrated
  • Kuebix
  • Legacy Supply Chain Svs.
  • Swisslog
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Auto ID & Data Capture
  • Automation
  • Conveyors & Sortation
  • Lift Trucks
  • Packaging & Labeling
  • Pallets & Containers
  • Shelving & Racking
  • WMS

Select Supply Chain Companies

  • Select All

  • 3Gtms
  • 3PL Central
  • Amber Road
  • Apex Supply Chain Tech.
  • APICS
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Frontier Business
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • Logility
  • One Network
  • Purolator
  • Quintiq
  • SMC3
  • Synchrono
  • TAKE Supply Chain
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Global Trade
  • Inventory Management
  • Risk Management
  • Sustainability

Select Software/Technology Companies

  • Select All

  • 3GTMS
  • 3PL Central
  • Apex Supply Chain Tech.
  • BluJay Solutions
  • Honeywell Intelligrated
  • Frontier Business
  • Kuebix
  • Logility
  • One Network
  • Quintiq
  • SMC3
  • Swisslog Logistics
  • Synchrono
  • TAKE Supply Chain
  • Zebra Technologies


Select Relevent Categories

  • ERP
  • Sales & Operations
  • Sourcing/Procurement
  • Optimization
  • Transportation Mgmt
  • Warehouse Mgmt

Select Executive Education Choices

  • Select All

  • Graduate Courses
  • Online/Distance
  • Executive Education
  • Certifications
  • Undergraduate
  • Seminars
  • Associations
  • Conferences
  • Tradeshows


Select Third Party Logistics Companies

  • Select All

  • 3PL Central
  • Landstar
  • Legacy Supply Chain Svs.
  • Purolator
  • SEKO Logistics
  • Westfalia Technologies


4
 

24|7 Company Profiles