What if there were little, to no, limitations to the what-if analysis you could do? What if you could change anything (data, working assumptions, business rules) to explore options and see the impact instantly? What if you could do scenario simulations for any function of your supply chain? What if you didn’t need to make it an IT project to create new scenario parameters? What if I go on and on with these questions… ?
Like many supply chain capabilities discussed in the industry, it is something touted by many, but not all what-if capabilities are created equal. Many advanced supply chain planning systems involve conditions where computing power must be rationed, scenario parameters are limited and collaboration is not built-in. Yet the value of what-if analysis is in the power to put the ability to do scenario simulations in the hands of many.
What-if analysis, in the most optimal condition, would be quick, flexible, extensive, and collaborative. And because it’s fast and easy, the capability would be leveraged fully and often, leading to decision-makers being able to test multiple scenarios projecting the impact of various “what-if” alternatives and evaluating their achievement against relevant operations performance metrics so a team is choosing objectively among a full range of options.
And we would argue that is exactly what happens in RapidResponse. It’s our secret sauce after all – well maybe not so secret given how much we advocate it. The point is that what-if analysis is absolutely foundational to our product and among the most critical capability in delivering on the “Know Sooner, Act Faster” value proposition.
This came through loud and clear in some recent customer interviews, whereby our customers talked about how scenario simulations are being used across business processes (strategic to tactical) to enable new ways to analyze situations and make decisions… fast!
There are several short clips available that I hope you’ll check out, but in the meantime, here is a taste of a few on the topic of what-if.
“…if an order comes in and changes or you get an emergency drop in order, we’re able to see how that order drops in, understand the effect of the order, understand what other orders are at risk in the simulation mode, and seeing right down to how does it affect our gross margin, how does it affect our inventory levels, how does it affect revenue at risk for a quarter end…”
“…we then set up what if scenarios that then become the foundation for our executive team to make any immediate course directions…”
“we’re doing scenarios, that really within a matter of minutes.. pinpoints… the risks that we have [in order] to be able to meet our customers’ requirements…”
What-if you wanted to learn more about our scenario simulation technology? Well we have lots more to show you here: http://www.kinaxis.com/en/capabilities/rapidresponse-supply-chain-software-capabilities/supply-chain-what-if-analysis/
The post What if there were no limitations to your what-if analysis? What would you simulate? appeared first on The 21st Century Supply Chain.
Originally posted by Lori Smith at http://blog.kinaxis.com/2015/07/what-if-there-were-no-limitations-to-your-what-if-analysis-what-would-you-simulate/