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From import tariffs to the next tsunami: how Prescriptive Analytics can help you build agility and resilience into your Supply Chain Network

destruction-2584744_640In a world full of turmoil, change has become the new normal.  New import tariffs being introduced across the globe, extreme weather events, Brexit…  The list goes on and on. What can Supply Chain leaders do to mitigate the risks that these disruptions bring to the Supply Chain? Businesses are constantly reminded that they need to be more agile and resilient in order to survive.  But what does this mean when it comes to Supply Chain Network Design?

Agility and Resilience

Agility is the ability to respond rapidly to change.  Many disruptions are not foreseeable.  For example, we don’t know where the next tsunami or hurricane will hit.  But when it happens, you need to be able to react quickly.  You should be able to model unforeseen disruptions, understand their impact, and use prescriptive analytics to put a plan in place that mitigates the negative impact on your bottom line.

Resilience is the ability to withstand change.  Forward-thinking Supply Chain leaders can become more resilient if they try to anticipate future events, and have a contingency plan ready for when the event occurs.  Let’s consider some examples.

  • What happens if import tariffs are reversed? Do I make changes to my Supply Chain Network based on the current reality of import tariffs ? Or do I design my network to be able to flex between different import tariff regimes?
  • What happens if one of my manufacturing plants goes down due to an unforeseen weather event? Do I know how to quickly find extra capacity, and how to re-allocate demand in a cost optimal manner?  Can I mitigate risk by preparing contingency plans for an event at any of my manufacturing facilities or DC’s ahead of time?
  • Can I get a competitive edge during a disruption by having a plan in place to deal with it ahead of my competitors?

A supply chain network design technology that incorporates prescriptive analytics makes it easier to model the impact of these scenarios and create contingency plans.

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Building an agile and resilient network with AIMMS

Too many companies are making big compromises with Supply Chain Network Design technologies, as our recent report shows.  Companies are using software that is often difficult to use and difficult to understand or using spreadsheets, which pose limitations to deal with complexity.

AIMMS has been used as a prescriptive analytics modeling platform to assist clients with Network Design for almost 30 years.  Recently, we have made it easier for clients by launching SC Navigator, a platform of configurable supply chain analytics applications, including Network Design Navigator.

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Network Design Navigator is a supply chain network design application built to help you meet your strategic needs. With it, you can:

  • Model your base case network
  • Evaluate scenarios quickly and easily
  • Make contingency plans when things go wrong
  • Get access to the model logic, so you can understand what’s behind the answers
  • Add value quickly with an easy to use, intuitive experience – no coding or technical experience required
  • Self-enable your team to answer questions as they come up
  • Leverage our 30 year track record in prescriptive analytics

I’d be happy to show you how it works. Contact us for a demo if you’d like to learn more.

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This entry was posted in AIMMS, Optimization, Prescriptive Analytics, supply chain design on by .
Paul van Nierop

About Paul van Nierop

Senior Supply Chain Consultant at AIMMS

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