Supply Chain Optimization ( Part 1/3)
“Artificial intelligence will revolutionize supply chain automation.” — Dave Waters
In the last few years, we have seen technology growing, and companies all over the world are using advanced technologies to maintain their position in this competitive market. In early 2020, we saw Covid-19 hitting the world, and the global market fell down. The recession began, and not many companies could survive it. There was a huge loss 📉. Those companies who made it through had a very powerful source. They were harnessing energy from the data. Today, those who are able to understand and analyze their data properly are making a difference in the market. To understand your customer needs and able to fulfill the demands also making a profit 📈 for yourself is where supply chain optimization comes. Before harnessing the power from data, let us understand the supply chain and it’s complexities.
The supply chain encompasses a sophisticated logistical framework comprising facilities adeptly engaged in the conversion of raw materials into finished goods. This intricate system adeptly orchestrates the efficient distribution of products to end consumers or customers.
“The supply chain stuff is really tricky.” ~Elon Musk
- Now, let us understand the complexity of the supply chain system. Supply chain complexity describes the interdependence exhibited by various entities within the supply chain system. This denotes a state where distinct components along the supply chain continuum are intricately connected and dependent on each other. Consequently, any perturbation or alteration occurring within a single element possesses the potential to impact all other elements of the supply chain. The various complexities in the supply chain are -
- Rising and constantly changing customer expectations.
- Network complexities
- Process complexities
- Product complexities
- Customer complexities
- Supplier complexities
