Category archives: AIMMS
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.
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.
Big data, analytics, BI…Everyone in business today has heard these terms at some point, and yet the path to analytics-driven business improvement remains somewhat elusive. We spoke with Keith B. Carter, Actionable Intelligence Expert and Decision Sciences Visiting Senior Fellow at the National University of Singapore Business School and Affiliate Professor Business Analytics Center, to unravel some of the difficulties managers face while embracing an analytics culture and discuss some best practices for success.
Keith is a global supply chain operations leader with over 16 years of extensive global experience in the Cosmetics-Beauty, Government, and Financial Services industries. He has managed teams across continents – from the United States to Belgium and Singapore. Previously, he worked at Estée Lauder in a variety of global supply chain roles, and Accenture in financial services and government. His book. Actionable Intelligence: A Guide to Delivering Business Results with Big Data Fast!, provides expert guidance to establish a culture of fact-based decision making and appropriate high-speed governance.
Papyrus, a leading European paper wholesaler, started using AIMMS in May 2014 to implement radical changes in its supply chain network and re-envision its forecasting, replenishment & supplier management workflow. The company’s supply chain supports more than 68,000 customers in 20 countries from warehouses and cross-dock platforms strategically located across Europe. Historically, every region was served by a warehouse that stocked an estimated amount of paper to meet local demand. Suppliers delivered to approximately every warehouse, with long lead times of four to five weeks. Due to high MOQs and fragmented demand spread out across a large number of warehouses, deliveries were infrequent. This was a high stock solution which the company could no longer afford due to a secular decline in the demand for paper and the global economic crisis. To overcome this challenge, the company would need to embark in a supply chain transformation journey to reduce cost and inventory while improving availability.
A recent report by the ACE European Group identifies supply chains as of the biggest sources of concern for European businesses today. On the one hand, companies are facing growing uncertainty due to volatile exchange rates, rising oil prices and economic and geopolitical events, such as Greece’s financial crisis and the conflict in Ukraine. On the other hand, there is a rising need for smarter and more flexible tools as well as more staff with analytical capabilities. This post will explore these and other challenges as well as the key innovations defining European supply chains.
Lora Cecere is the founder and CEO of the research firm Supply Chain Insights. She is the author of the enterprise software blog Supply Chain Shaman, which attracts 5,000 readers weekly. She also writes a blog for Forbes and is a LinkedIn Influencer. Currently, Lora’s research focuses on supply chain sensing and revenue management. Her supply chain experience includes specialist roles at AMR Research, Clorox, Gartner Group, Kraft, and Procter & Gamble.
My Twenty years of Supply Chain Operations, Consulting and Business Management drew to a close in the Spring of 2014 as I elected to take a break from my career and invest 100% of my time into family. It’s been a fairly wild journey which consisted of operational roles in warehousing and logistics across Europe followed by a consulting and business management career that had me employed by companies headquartered in London, Paris, Virginia and Bangalore.
Recently, we covered four great examples of how organizations are using optimization technology to address social problems in innovative ways. In a similar way, this post highlights four ways optimization can be leveraged to add value to your company’s supply chain.
Long-haul oil transportation is a multi-million dollar operation for large oil companies such as Petrobras. The difference between a reasonable and a good transportation schedule may involve millions of dollars in cost savings. To properly schedule each shipment, planners must find a match between cargos, vessels and destinations. Petrobras is one of the players in the spot market of chartering and renting out long-haul oil transportation vessels. How do they manage to combine the computational aspect of searching through the vast space of possible schedules and the human aspect of operating on the spot market of chartering and renting out vessels? This blog post offers an insider’s look into the AIMMS-based decision support system (DSS) that is currently being used by Petrobras to tackle this ship scheduling challenge. Continue reading »
Since we started this blog, we’ve been exploring how supply chain optimization can aid the decision-making process and bring organizations better results. We have covered a multitude of methods and techniques applied in the pursuit of supply chain excellence, and have discussed some of the most pressing challenges faced by today’s business leaders. Today, inspired by our mission to bring the benefits of optimization to society as a whole, we will look at 4 inspiring AIMMS use cases which leverage optimization technology not only for business advancement, but for the greater good. Continue reading »