CYLAD Consulting discusses “Improvement of Supply Chain planning stability by leveraging Smart Data” at annual Marcus Evans S&OP Conference

Although Supply chains are designed to be flexible and robust, they are still fragile and sensitive to volatility of demand. Such volatility may trigger On-Time Delivery (OTD) crises but, more importantly, can harm the relationships between customers and suppliers. Addressing these issues is not straightforward. The solution involves analysis of various factors including references, data, stakeholders, and “black boxes.” Such a vast set of information to analyze is a prime playing field for Smart Data!

 

During the annual Marcus Evans S&OP conference in Paris, Patrick Sage and Roberto Giso of CYLAD Consulting together with two supply chain experts from a European aerospace client company, presented a Demand Monitoring initiative. This initiative relies on Smart Data and aims at identifying instabilities in demand forecasts communicated to suppliers. It relies on specific metrics, processes, tools, and routines to:

  • Detect, qualify, and quantify demand disturbance
  • Prioritize detailed investigations: The smart data tool developed by CYLAD performs intelligent clustering based on behavior patterns. This feature provides instant visibility on the key focus areas
  • Identify root-causes of planning instability (e.g., changes in design, production planning, or ordering).
  • Create transparency on upstream changes that can cause demand variations (e.g., design or assembly process variations)
  • Anticipate issues and provide early-warning to stakeholders

 

As always, success relies on the human factor. Three elements distinctively contributed to the success of the project:

  • Shared understanding: metrics to measure instability are simple and shared within the whole organization
  • Awareness: all relevant functions are involved, not only supply chain
  • Adoption: the tools have been built and customized with and for the users, through iterative loops

 

Such a way of working has multiple business benefits: higher efficiency and agility of supply chain stakeholders, improved fluidity of relationships between suppliers and customers, and ultimately, improved delivery performance and reduced supply costs.

 

For further information please contact:
Patrick Sage, Partner, CYLAD Consulting,
patrick.sage@cylad.com – +33 1 83 79 03 56

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