Sense and pivot
The supply chains of yesteryear no longer holds water in today’s business landscape. Changing customer demands, siloed organizations, and technology investments have required supply chains to evolve. It’s time to leave behind antiquated ideas about economies of scale, traditional optimization and classic operations research algorithms.It’s time for sense and pivot.
This innovative approach to supply chain design allows companies to access insights and data in real time and translate that information into immediate action. Sense and pivot builds resiliency and flexibility into your supply chain, ensuring you’re ready for whatever challenges and opportunities come your way.
Experience the possibilities
Imagine that you know everything happening in your supply chain. The data comes to you in real time, and you’re able to make smarter, faster decisions. And your supply chain continues to operate in spite of shocks—preventing stock-outs, delivering assortment, protecting brand image, and predicting disruption. This is sense and pivot in action.
The approach is not only about creating resiliency in times of crisis but also enabling a robust and cost-efficient response to volatile and changing customer demand. With sense and pivot, you can easily meet volume changes, adjust product offerings, and shift capacity. You can service continually changing customer demand, without the burden of obsolescence technology and expensive express delivery costs.
It’s the future of supply chain capabilities. But how can you make it happen now?
The crucial components
To create a sense and pivot supply chain, organizations need three essential components:
A sensing platform that has the ability to identify risk and generate insights from internal and external triggers. This enables real-time tracking, market adaptability, and improved network visibility.
A cognitive supply chain that provides end-to-end visibility and execution, powered by AI-based technologies. Organizations employ real-time simulation, seamless orchestration and strong evaluations of cost, risk, and service trade-offs.
A pivoting operating model that brings together people and physical assets to create an agile and collaborative operating model. Companies will be in the position to create automation and transformation opportunities and experience financial and operational gains.
Sense and pivot across the supply chain
As you embed sense and pivot throughout an organization, every aspect of the supply chain benefits.
Planning. Empowered by real-time data and machine learning, a sense and pivot approach allows the organisation to dynamically manage planning and continuously update demand. Organizations can currently shift from monthly to weekly cycles (daily cycles are within reach soon).
Sourcing. You’ll benefit from a deeper understanding of suppliers, dynamic procurement process and systems, real-time market-linked forecasting and modeling, and much more. Changing volumes within end-to-end becomes easy, and tapping into available capacities and capabilities, even at marginal cost, becomes common.
Production. In combination with manufacturing 4.0 initiatives, sense and pivot provides a dynamic production network instead of a less flexible, single source of supply. This allows for smaller batch sizes at lower costs and the ability to prioritize available capacities throughout networks via digital twinning and scenario simulation.
Last mile delivery. By enabling dynamic allocation of warehousing and deliver capacity across a multitude of channels, serving customers in urban and rural areas with short lead times. For example, the organisation is able to gain insights and usage of available delivery capacity at marginal cost, which allows for same-day delivery service and multichannel supply at any moment.
How RITEC Consulting can help
We’re helping companies future-proof their supply chain operations to be more resilient and agile in the face of disruption.
We offer deep experience and expertise and can help you rethink your supply chain for a new era. We’ve worked with multiple global supply chains in various industries to improve supply chain insights and performance.
RITEC Consulting has a proven approach that allows you to deploy sense and pivot capabilities within weeks. This includes assessing your current supply chain, designing a new model, testing, and deployment.