Category archives: AIMMS
Something 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?
The 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.
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.
As 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 »
Liberty 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.
Internet of Things (IOT), Cost-to-Serve, Segmentation and Supply Chain CoEs are unable to deliver promised business value without Prescriptive AnalyticsPosted on November 08, 2016 by Chris GordonLeave a reply
Gartner’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.
The Brexit is a reality and with it, companies in Europe are facing even more uncertainty than before. There is serious concern that the UK’s decision to leave the EU will bring further destabilization and economic risks. How will it impact your supply chain and your bottom line? This article discusses 5 key things supply chain leaders should consider post-Brexit. It also explains how analytics can help you determine the best way forward. Specifically, I will explore how Prescriptive Analytics can help you improve decision-making and make data actionable in an increasingly volatile economic landscape, instead of only providing insight into your data’s behavior.
Last 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
It comes as no surprise that business and supply chain leaders are seeking new approaches to get ahead in the analytics age. Implementing an analytics strategy, and in particular implementing prescriptive analytics, can significantly improve revenues and drive down costs. How can you ensure that your team is prepared to embrace these new technologies and approaches? Experience shows us that technology is the easy part. Getting buy-in agreement and changing your company culture to embrace analytics is often more difficult. A Center of Excellence (COE) can help you start off with the right team structure, engage the right stakeholders and put you on the right path to implementation.
It’s no mystery that some of the world’s largest retail chains are struggling to survive. Walmart is closing a record number of stores (269) in the U.S. and abroad this year. Trusted names like Sears, J.C. Penney, and Gap have also lost their momentum. In Europe, V&D, a major Dutch department store, and Brantano, a large footwear retailer operating in the Netherlands, Belgium and the UK, have officially declared bankruptcy. Demand is sluggish and many have failed to adapt and streamline shopping experiences for today’s connected consumer. Still, even in the midst of this turmoil, retailers like Kroger and Zalando are thriving. What are these companies doing differently and what trends should retailers look out for? Let’s take a closer look.