Time to Get Smart About Data
Is your supply chain your biggest headache right now (aside from whomever you are sheltering in place with)? If so, you might want to check out these five fast pieces of advice from Fast Company.
“The solution isn’t to stop building efficient global supply chains,” writes Sudheesh Nair, CEO of ThoughtSpot. “Rather, businesses need better visibility and the ability to pivot quickly when a crisis arises. The key to achieving this is to use data in smarter ways to spot disruption sooner, accurately gauge its impact and make intelligent decisions about alternative sources of supply.”
Nair recommends that you:
- Incorporate third-party data for a more complete picture of events as they unfold.
- Acquire real-time data for real-time assets. Nair cites Kroger, which uses “data from its intelligence unit to respond to the near-daily fluctuations in customer behavior during the pandemic, such as whether people are shopping more frequently on weekdays or buying certain products in bulk.”
- Look beyond logistics to pricing. “An intelligent pricing strategy that accounts for real-world conditions is essential even outside of a disruptive event,” he noted. “McKinsey has calculated that a 1 percent increase in price for a product can yield a 22 percent increase in profit margin, making it far more effective for boosting profit than an increase in sales volume.”
- Encourage your suppliers to digitize. There’s much to be done here, he notes: Only 28 percent of manufacturers had started to digitize their supply chains as of two years ago.
- Prepare for the future. No explanation needed here.