Seven Decision-making Capabilities to Drive Supply Chain Excellence

The topic of supply chain excellence is extremely broad and spans a smorgasbord of topics associated with People, Process and Technology. However, if we focus on key decision-making capabilities that can help companies achieve supply chain excellence, we come up with the following seven areas. By mastering these capabilities, a company is almost guaranteed to succeed in the industry. In fact, supply chain decision making capabilities can result in 2-5% of revenue in bottom-line profit.

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Moving Beyond a Business Intelligence Approach to Support Timely Decision-Making

More than ever, supply chain functional or line of business teams have been frustrated by their increasing needs for broader and more-timely business intelligence (BI). The reasons are many and in increasing cases, very valid. But more than ever, teams should now be turning their attention towards leveraging processes and technology anchored in prescriptive analytics.

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5 Ways Optimization Enables Financial Maturity

Financial maturity starts by first understanding how your business has performed. In other words, can you produce a P&L, balance sheet and cash flow statements for the business? As the organization matures, the financial knowledge goes deeper.  Financial statements are produced faster and, more importantly, the organization starts to apply cost accounting principles to understand where it's making money (products, customers, regions, channels) and where it isn’t.

Even deeper knowledge is achieved as the organization begins to apply more complex analyses that look at marginal contribution, achieved by tagging variable, direct and indirect costs. You might be familiar with standard costing, activity-based costing and other approaches that attempt to provide additional information.

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What Is a Decision Support System & Why do I Need One?

First things first: what is a decision support system (also referred to as a DSS)? In short, it's a computer solution using statistical data to help managers and operation planners overcome strategic deficiencies in order to implement streamlined, efficient solutions. DSS systems can be entirely optimized via computer, entirely human-powered or a hybrid of both.

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Still Using Excel for Optimization Modeling? Stop.

I love lazy Sunday afternoons, especially when it’s August in Texas, the Dallas Cowboys haven't kicked off the new season, and the weatherman insists I unwind on the couch and watch a little golf.

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Cost Allocation on Steroids

Over the last decade, cost allocation has become a big topic of conversation. More and more frequently, people are beginning to discuss the various types of cost allocation methodologies, the benefits of each type and the differences between them.

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Is Your Choice of Optimization Software a Long-term Risk?

 

Well-run organizations continually assess the risk associated with critical internal dependencies and external factors, like the condition of physical assets and security of facilities, as well as exchange rates, government policy, economic cycles, regulatory and environmental laws, etc. The list of serious risk factors that most businesses face can be quite long.

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Prescriptive Analytics - Closing the Loop

Data becomes action when supported by analytics, and when it is organized into stages that provide business insights using embedded models and forward-looking technology. Exponential investment return is achieved every time a business steps forward in the analytics ladder, toward closing the loop in business integration.

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Free your mind for better enterprise planning

I recently read a story about a teacher at an impoverished elementary school in Matamoros, Mexico, who one day told his young students they were free to decide what they wanted to learn and how to spend their time doing it. His job was to nurture their curiosity, help them when needed, and to provide positive feedback. Even though the students still had to learn basic mathematics, reading and writing skills, the teacher was determined to let the students learn naturally in a way that made sense to them.

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Now Six Thousand Models – and Counting!

An update to a blog I wrote back in 2011 titled “Two Thousand Models – And Counting!”

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