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Analytics for Supplier Capacity Management

For companies that are experiencing significant variations and uncertainty in demand for their products, they need to have enhanced visibility into the ability of their Suppliers to meet their needs for materials.

In order to manage their commitments to their Customers, companies need to have confidence in their Suppliers’ ability to provide the materials on a timely basis.
Whether the company is experiencing high growth or a reduction in Customer demand, they need to be able to match the demand and supply to manage their business efficiently and profitably and plan effectively for the future.
Traditional methods of analyzing past patterns only provide limited insight and limited confidence in making forward-moving decisions and strategies. Employing sophisticated Predictive Analytics will empower you to see what’s ahead for your business in ways you’ve never dreamed possible before. Access to these insights into the future will enable you to explore the impacts of various approaches and their likely effects utilizing sophisticated mathematical Optimization guidance.

Variability in Customer Demand

  1. Near-term forecasting is relatively accurate
    • Customer orders received and those expected shortly give good visibility
  2. Longer term forecasting is significantly more complex and less accurate due to many unknown future variables
    • Most longer-term forecasting is based on extrapolating these past trends and patterns combined with “gut feel” based on past experience
    • Unknown future variables such as Customers lost to competition, new competitive products introduced, mergers and acquisitions, national and global economic conditions changing add to the complexity

Variability in Forecasting Capacity from Suppliers

  1. Many different suppliers
    • They have many customers they need to satisfy, thus putting conflicting demands on them
    • All subject to many unknown future business variables, the same variables your company faces
    • They have their own Supply Chain which induces variability

An Ongoing need to Analyze, Monitor and make informed decisions

Need tools that empower you to:

  • Adapt to the constantly changing information
  • Provide alerts to future problems while you still have time to mitigate them
  • Provide suggestions for optimizing your planning options: Suppliers, profitability, customer satisfaction, etc.

CGN Supplier Capacity Management Solution

  1. Supplier Capacity Assessments
    • Determine which Suppliers are most strategic to your success
    • Construct a plan to audit key Suppliers…CGN or your people to audit
    • Build data sets for analysis based on Supplier audits and other sources
    • Establish processes for ongoing refinement of Supplier’s Capacity forecasts
  2. Smart-Edge Supplier Capacity Analysis Service
    • CGN will deliver a sophisticated suite of online analytic tools to perform gap analysis and optimization guidance
    • Flexibility to work as far into the future as you need
    • Customer Demand data and Supplier Capacity data can be updated as often as you like
    • 24/7 Web Browser access
  3. Mitigation Planning
    • CGN will strategize with you to establish mitigations plans with Suppliers, your Customer Demand and your production processes
    • Continue to monitor and analyze the effectiveness of your mitigation plans with Smart-Edge