Efficiency Gains and Cost Savings Don’t Always Drop to the Bottom Line. Prescriptive Analytics Can Explain Why and What to Do About It.
How prescriptive analytics can help manufacturers set priorities and realize greater financial gains from capital investments and improvement efforts.
During employee team meetings, the CEO of one of our clients would always make a point of reviewing how the company made money. “We take a bunch of random raw materials,” he would say, “and convert them into something we can sell for more than what it costs to make. What’s left over is called profit. We’re in business to make more of that stuff called profit.”Read More
The move to greater sustainability can be seen everywhere from small, local businesses to large multinational ones. While many companies identify the supply chain as the most difficult aspect of their business to make sustainable, it is also one of the most important.
This is largely due to the impact that a sustainable supply chain can have on the overall well-being of society and the environment. However, the benefits to the actual business should not be overlooked. One advantage is developed through increased brand value due to consumer concern with the environment, but there are other benefits as well.
Consider the fact that sustainable supply chains are, by their very nature, less resource intensive than their counterparts. A move to greater sustainability involves a move to greater efficiency, as the two go hand in hand. This means that despite upfront costs, investments in sustainability can actually significantly decrease expenses in the long term.Read More
Supply chains continue to increase in complexity as they are leveraged to drive higher value through increased output at lower costs. The more intricate supply chains become, the more difficult (and necessary) it becomes to analyze risks simultaneously.
Risk analysis becomes more difficult as risk visibility decreases and complexity increases. It is quite easy to see risk drivers in simple supply chains, but as additional departments and components are added, risks become obscured.Read More
For most CEOs and executives, the massive investment they’ve made in technologies deployed to help them with complex operational and strategic decisions have been extremely frustrating. The adoption of an Enterprise Resource Planning (ERP) system was supposed to provide a single integrated view of your business to help drive decision-making across all functional areas.Read More
In his article in the previous issue of Foresight, Dean Sorensen (2016) argued that while there is increasing complexity in business environments, there has not been enough focus on tying strategy to execution. I am in agreement with him: I think the biggest systems integration challenge facing CEOs is how to seamlessly tie strategic decision making to operational execution (Sales and Operations Planning).Read More
While embedding financials is the bedrock for expanding the value from S&OP, adding robust what-if analysis capabilities can unleash its maximum potential, thus delivering true Integrated Business Planning.
What-if analyses allow users to evaluate alternative strategies, policies, and tactics to maximize their revenue, profit, and working capital performance while delivering on service level commitments and properly considering risk and supply chain constraints. Over the past year, we’ve discussed this topic with current and potential customers and partners. We’ve found companies tend to be fairly clear in articulating their business needs. Surprisingly though, S&OP managers have more difficulty articulating the technology capabilities required to deliver on the business need.Read More
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.Read More