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Logistics providers face escalating pressures to meet high-speed delivery expectations and manage unpredictable market dynamics. Logistics warehouses that prioritize flexibility, operational efficiency, and throughput will be able to secure long-term growth, meet client demands, and stay ahead of evolving industry trends.
How are companies leveraging scenario modeling for network design and optimization ? The company modeled scenarios and performed simulations in AIMMS Network Design Navigator with all their products grouped together. Another use case we see for scenario modeling in the current context is evaluating new sourcing locations.
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Speaker: Irina Rosca, Director of Supply Chain Operations, Helix
Focusing on this information once per month during the S&OP meeting is too late for all business units to align. Organizations need to focus on demand driven supply planning, utilizing real time information on customer orders from all marketplaces (e-commence, Amazon - or other online retailers, and point of sale data from brick and mortar).
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Integrated networks of “as-a-service” platforms, including analytics engines that predict demand dynamically, can enable businesses to scale autonomously to meet peaks and troughs. Because of the evolving need to provide customers with ever-greater choices and meet their requirements for customisation and personalisation.
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What role can Integrated Business Planning and scenario modeling play? Scenario modeling, on the other hand, plays an increasingly critical role to let teams explore a range of possibilities as demand volatility increases. Supporting IBP with scenario modeling, also fosters discussion and engagement during meetings.
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.” I think the answer depends on the person’s mental model and biases about the role of authority. And, to be clear, this is actually a continuum rather than a bipolar model. That is the purpose of these meetings. There are a couple of distinct paradigms I want to discuss. I am just showing the endpoints.
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However, one-third of SCP leaders cite “the lack of effective decision making in the S&OP meeting process as the most critical problem to solve for their function’s overall performance” (source: Gartner, Improve S&OP Decision Making Through Scenario Planning , Supply Chain Research Team, 4 May 2020). – Tweet this.
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This reflects the difficulty in synching the plans finalized in an integrated business planning executive meeting with what the shop floor is capable of manufacturing and fulfilling in the short-term time planning horizon. The same disconnect can happen in the warehouse and in transportation.
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