Predict, Not Just Respond

Are You Predictive or Reactive?

Predictive or Reactive

It may not be a surprise that you are both! You are constantly planning trying to be predictive and you keep adjusting your plans to execute the predictions that you made. Imagine planning to go on vacation in 4 weeks. You plan the date, even the time to get to the airport, buy tickets get your hotel room etc. The night before leaving you realize that it will be raining hard the next day and you have to leave earlier than planned. Next day you get up a little sooner, have your cup of Joe and you are about to put the suit cases in the car and realize that you have a flat tire! You have to make a decision to change the tire, call for help or call a cab? On the way to the airport there is a major traffic jam on the freeway! You come up with a new route and make it in time to check-in only to realize that the departure is delayed by 4 hours. As a result, you may miss your connection flight which would cause not making it in time to check into your hotel at your destination!

For S&OP planning, only an abstract model of the supply chain is used resulting in plans which are not very accurate. If anything goes wrong manual adjustments have to be made to make it work!

This is how things happen in a typical supply chain. Plans are made confidently with a S&OP solution but when it gets to executing the plan, the real challenges present themselves and manual intervention is needed. This is where S&OE comes to your help making sure that you look at all the alternatives to make it to your destination on time! S&OP is a rudimentary planning system. For S&OP planning, only an abstract model of the supply chain is used resulting in plans which are not very accurate. S&OE, however, has an accurate view of the world (a Digital Mirror©) and can make decisions as to what to do and how to go about executing the plan in order to reach your objectives. Furthermore, if you have an intelligent S&OE, it can even predict the likelihood of rain and traffic jams!

S&OE can provide close to 100% accuracy. Adexa’s Digital Blueprint© is intended to guide you to transition S&OP closer to S&OE

It should be noted that for a system to be able to both predict and react it has to be done holistically within the same unified data model. Otherwise we are dealing with an environment where planning is done separately from execution! Humans plan and execute seamlessly by constantly monitoring the environment and adapting. Autonomous cars do this the same way by constant monitoring and adjusting the plans while the car is in motion. Your supply chain also needs to run the same way by a unified data model that is continuously planning and executing seamlessly.



Comments (1)

thanks for the information

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