Supply Chain Blog

Optimization Intelligence for Supply Chain
Logistics and Planning Professionals

Category archives: AIMMS

Supply Chain Network Optimization Technology is Ripe for Disruption

Posted on June 20, 2017 by Leave a reply

innovation-aimmsSomething struck me after spending a few days in Phoenix at Gartner’s Supply Chain Executive Conference. Supply Chain Network Optimization is key to running an efficient and profitable operation today. But while the market has changed, network optimization hasn’t actually advanced much since the 1990s. Yes, there are lots more features and a big increase in computing power. Yet, network optimization is still just a richer version of the 90’s experience.

Analyzing the software market

Network optimization software has become a big business that’s experienced exponential growth. There has been strong adoption of boxed solutions that are feature rich with many bells and whistles. What I heard at the Gartner conference is growing frustration with these large packages that have become cumbersome to use, too difficult for the average supply chain expert, lack flexibility and have high price tags. Sound familiar?

So what is the alternative? First, we need to go back to the original purpose. Supply Chain teams shouldn’t be overly focused on technology. Instead, they should have their eyes set on the desired outcome. Supply Chain teams want a supply chain network that runs in an optimized fashion, with signals that indicate when and where to invest in future infrastructure. The network optimization tool should just be a means to an end.

So why hasn’t it become easier and cheaper to have an optimized network? Why are companies investing more and more in this focused discipline?

Continue reading »

This entry was posted in AIMMS, Innovation, Supply chain optimization on by .

Companies in Asia Pacific Eager to Innovate with Supply Chain Optimization

Posted on June 01, 2017 by Leave a reply

shanghai-2303480_1920The adoption of advanced analytics has moved at a much slower pace in Asia Pacific compared to Europe or North America. There are innovative firms that are setting the standard for innovation and successful analytics adoption, but as Actionable Intelligence expert Keith B. Carter explained in an interview with us last year, large businesses in the region are still lagging behind. In recent months, I‘ve been active in several events in the region and I’ve noticed a changing trend. Companies are increasingly eager to hear about optimization and advanced analytics. It’s not hard to see why. People are very intrigued by Prescriptive Analytics and Modeling, hearing success stories from counterparts in industries like energy and retail. Still, most businesses are worried about execution. Let’s take a closer look at their interests and concerns.  

Areas of interest 

There are several areas where companies are eager to apply optimization. These tend to be:

  • Network design and planning: the process of evaluating complex trade-offs to deliver a network plan that maximizes profits and minimizes costs.
  • Distribution center and coverage planning: a process to identify what the best location for your distribution centers is to ensure efficient and on-time deliveries across the chain.
  • Stock allocation: the process of aligning supply and demand to move merchandise in a fast and agile way.
  • Production planning: determining a production plan to serve different customers in an optimal way.

The need for advanced analytics in these areas is pressing, as large amounts of data are available, adding complexity to operations. However, there are some concerns hindering adoption. 

Continue reading »

This entry was posted in AIMMS, Asia Pacific, Supply chain optimization on by .

3 Compelling Reasons to Start Using Prescriptive Analytics

Posted on February 09, 2017 by Leave a reply

If you’ve read up on the latest topics in the field of data analysis, then you’ve probably encountered the term Prescriptive Analytics. Prescriptive Analytics is a type of Advanced Analytics that results in a recommended action. Unlike Descriptive (focused on reporting with basic trend or pattern recognition) or Predictive Analytics (focused on predicting the future with forecasting techniques), Prescriptive Analytics uses techniques like machine learning and mathematical modeling to help you improve decision making.

Prescriptive Analytics is at the cutting edge of data science and companies are increasingly interested in exploring its benefits. According to Gartner’s Forecast Snapshot, the Prescriptive Analytics software market will reach $1.1 billion in value by 2019. About 35% of companies are expected to adopt this type of analytics by 2020, but what exactly is driving adoption? AIMMS has been in the business for more than 25 years. Over time, we’ve identified 3 major reasons businesses feel compelled to adopt Prescriptive Analytics. Let’s explore them further.

Continue reading »

This entry was posted in AIMMS, Optimization, Prescriptive Analytics, Supply chain optimization on by .

Top 5 posts from our Supply Chain Blog in 2016

Posted on January 05, 2017 by Leave a reply

bestof2016As we step into 2017, we took some time to reflect on the most popular posts on our Supply Chain blog last year. Trending topics included S&OP, Prescriptive Analytics, Supply Chain Optimization, Supply Chain Centers of Excellence and Supply Chain Analytics. What are you interested in learning about this year? Let us know in the comments and check out the curated list of our most well-read blog posts in 2016:   Continue reading »

This entry was posted in AIMMS, Liberty Global, Prescriptive Analytics, Sales and Operations Planning, Supply chain optimization on by .

Optimizing Liberty Global’s Supply Chain: An Interview with Willem Vesters

Posted on December 08, 2016 by Leave a reply

willemLiberty Global is the world’s largest international TV and broadband company with operations in more than 30 countries. The company started working with AIMMS and our implementation partner Districon in October 2015 to develop a Demand Aggregation tool. Today, they are looking to expand their use of AIMMS for other planning capabilities. We had the pleasure to speak with Willem Vesters, Liberty Global’s VP Global Supply Chain Planning, to learn more about their optimization journey.

Hi Willem, can you please tell us more about your background?

I am originally from Breda, a city in the southern part of the Netherlands. I have a Master’s Degree in Aerospace Engineering from Delft University of Technology but I’ve spend most of my career in operations. I worked at ING for a short period, then moved to Philips and subsequently I became the Supply Chain Planning Director for Office Depot in Europe. These days, I head up the Supply Chain Planning division at Liberty Global.

Continue reading »

This entry was posted in AIMMS, Integrated supply chains, Liberty Global, Supply chain optimization on by .

5 Dysfunctions of Typical S&OP Systems and How to Overcome Them

Posted on December 01, 2016 by Leave a reply

Sales & Operations planning has been around for 30 years. It was created initially by Oliver Wight and has become the standard procedure to improve business performance and predictability. Throughout the years, we’ve witnessed waves of interest in S&OP and its evolution IBP, which incorporates financial planning. In the past 2 years, we’ve seen the appeal of S&OP increase a lot more. But companies tend to struggle when it comes to finding the right technology to enable the process. In this blog post, I will delve into 5 issues companies typically experience with their S&OP software.

The whole purpose of S&OP is to discuss important questions today to prevent them from causing urgent issues 12 months from now. The business impact of this is profound. As Lora Cecere (Supply Chain Insights) explains, an effective S&OP process can result in a more controlled, aligned, agile, proactive and strategic supply chain. But to implement it effectively, companies first need to understand why S&OP is important for their business. Every company has different business drivers and different requirements. This makes S&OP implementation a difficult process, especially when it comes to finding the right tools.

Continue reading »

This entry was posted in AIMMS, analytics, Optimization, Sales and Operations Planning on by .

Internet of Things (IOT), Cost-to-Serve, Segmentation and Supply Chain CoEs are unable to deliver promised business value without Prescriptive Analytics

Posted on November 08, 2016 by Leave a reply

business-idea-831053_1280Gartner’s Hype Cycle for CSCOs is a valuable read for current and potential Supply Chain leaders. It brings together a long list of trends, enabling technologies, business frameworks and competencies that should be in your consideration set. The big theme of course, is the digitization of the supply chain and the implications it will have on business performance. What seems very clear is that if you’re not planning to jump aboard this train very quickly, you’re going to have what will appear to be a stone-age supply chain within 5-10 years.

As a Gartner recognized Prescriptive Analytics software company, we’re most interested in all things digital that have analytical flavor by nature. We see our clients deliver strong value from digital innovation, but only when organizations have the knowledge and technology to do things differently. This requires Prescriptive Analytics, a type of advanced analytics that results in a recommended ACTION.

In other words, for digital transformation to succeed, organizations need to be able to “take action” based on their data. Let’s take a look at some of the competencies mentioned in Gartner’s report so I can provide evidence to back up this outrageous statement.

Continue reading »

This entry was posted in AIMMS, analytics, Prescriptive Analytics, Segmentation, Supply chain optimization on by .

Is Prescriptive Analytics really going to disrupt how Supply Chains evolve?

Posted on August 23, 2016 by Leave a reply

door-673000_1280In 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.

Continue reading »

This entry was posted in AIMMS, Gartner Hype Cycle, Prescriptive Analytics on by .

AIMMS Sponsors the 18th Annual Supply Chain & Logistics Summit in Barcelona

Posted on June 29, 2016 by Leave a reply

IMG_0120Last week, part of our EMEA team (Christophe, Marcel and Kim) attended the Supply Chain & Logistics Summit as a sponsor for the fifth consecutive time. The conference took place in Barcelona. The overall theme of the Summit was the Value Chain and How to Build the Competitive Supply Chain of the Future. This main topic was covered throughout the whole program. Sessions addressed subjects like:

  • Enhancing Competitiveness Through Technology
  • Supply Planning & Optimization
  • Harnessing Logistics to Satisfy Customers
  • Leveraging the Global Economy

Continue reading »

This entry was posted in AIMMS, Conferences, Supply chain optimization on by .

Need Robust and Flexible Supply Chain Analytics? Build your own Apps

Posted on June 23, 2016 by Leave a reply

touch-screen-1023966_1280My takeaways from Gartner’s Supply Chain Executive Conference 2016

Apps have come to define the way we work and live in many ways. We have cars with Apps, watches running Apps, TVs that operate with Apps…as the phrase goes “There’s an App for That.” There are Apps out there for just about anything, it’s hard to imagine a world without them. Why do we love Apps so much? We get the information we need upfront, they can be used anytime, anywhere, they help us connect, and they serve a specific purpose.

When it comes to Supply Chain Analytics, an “Apps approach” can have just as many benefits. Gartner’s Noha Tohamy offered a great presentation about this at their recent Supply Chain Executive Conference. But what exactly is a Supply Chain Analytics app? Noha defines it as “a solution developed in-house or by a service provider, targeted at a specific use case.” By taking an Apps approach, companies can build an app library with solutions. Think for instance of a Source Optimization app for your retail company – a custom solution that helps you understand how and when to source your supplies, foresee possible supplier issues and adapt your plans accordingly. Another example, this time in the oil industry, would be an oil blending app. Oil blending is not easy. Blending rules are always in development and are considered to be extremely proprietary. A custom Optimization or Prescriptive Analytics app can be adapted quickly as the rules change, it can empower people in your organization, be readily accessible for end users and help you create better blends.

Continue reading »

This entry was posted in AIMMS, analytics, Conferences, Gartner, Innovation on by .
  • Sign up

  • Customer Reviews

    Read more AIMMS reviews
  • Review AIMMS on G2 Crowd
  • Recent Posts

  • Supply Chain Brief
  • Categories