Page 42 - Inbound Logistics | April 2017 | Digital Issue

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BY ROEI GANzARSKI
Roei Ganzarski is President and CEO, BoldIQ,
roei@boldiq.com | 206-304-8129

3 Steps to a Demand-Driven Supply Chain

he on-demand economy means customers expect identify the inefficiencies and
instant gratification via immediate access and con- constraints. With interruptions to
T venient delivery options. Companies must adapt and staff availability, changing shift
schedules and demand, as well
start optimizing their supply chains to stay competitive. as regulatory and operational
constraints happening each day,
Many companies are still supply large time windows to allow more businesses must be able to quickly
driven, constrained by resource perceived flexibility. This model is adapt. Resource optimization can
capacit y, archaic scheduling not sustainable. adjust accordingly and also take
technologies, and inefficient decision- What if the company’s supply into consideration issues such as
making. Typically, these businesses chain was optimized to handle required breaks, logical shift plan-
match demand by increasing random ad-hoc same-day orders, ning, and who can best cover when
the supply and infrastructure to completing all the deliveries with an employee calls in sick.
support it. To become demand- fewer trucks within accurate time 3. Prepare for disruptions. Being
driven, companies must consider windows? Leveraging data with able to adapt to any disruption keeps
three actions: dynamic real-time optimization, a business operating smoothly and
1. Leverage real-time data. Data companies can consider all factors efficiently. No matter the size of the
is key to providing valuable insights and determine what truck should disruption, the financial impact can
into what is working in the supply take new deliveries while also keeping be severe for a company with a sup-
chain and what can be improved. the rest of its previously scheduled ply chain that isn’t optimized and
Analyzing data in real time can orders on time. prepared to react in real time.
help answer the most critical ques- 2. Optimize staff. Having the right The key is making the sup-
tion: ‘What do I do now?’ Dynamic person at the right time is crucial for ply chain nimble and able to react
real-time optimization of the supply employers. Many organizations often quickly with an actionable plan when
chain enables companies to use data understaff, overstaff, or assign one (not if) a disruption occurs—mitigat-
to make rapid decisions and create person to a task when another is bet- ing as much risk and financial loss
actionable plans by taking all aspects ter suited, impacting productivity and as possible.
into account. customer service. If businesses leverage data to its
For example, a same-day grocery Just as a company may overbuy fullest potential, converting it in
delivery service may have extra delivery trucks to have on hand for real time to actionable operating
delivery trucks on standby, ready surge times, it also tends to have plans, they could see a significant
for an influx of orders, to ensure it more employees than necessary for reduction in operating costs and
meets ad-hoc demand and delivery the same reason. resources, while also increasing
timeframes. Or alternatively it tries Companies can do more with customer satisfaction and improving
to ‘box’ its delivery schedules with fewer employees if they properly the bottom line. n

40 Inbound Logistics • April 2017