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Predictive simulation supports supply chain planning through harnessing complexity and managing variability. Visualize the future performance of your supply chain to reduce risk, maximize resource allocation and gain agility through greater control of your operations.
Modern supply chains are subject to unprecedented volatility, supply and demand uncertainty and cost pressures. Fluctuating labor costs, unpredictable availability of materials and resources, skills shortages and high transportation costs mean that there is an abundance of ‘what-if’ scenarios to navigate in order to optimize performance at the lowest cost base.
Predictive simulation helps to master this web of complexity through identifying risks and bottlenecks throughout the supply chain and highlighting opportunities for cost savings and performance improvements.
It does this through mapping the entire supply chain, and comparing different scenarios to control performance. This ensures that the right product is delivered in the right way, at the right time, at the right cost point.
Predictive simulation demonstrates the various conditions that need to be brought about in order to achieve a particular outcome. Through viewing infrastructure and networks in a virtual environment, and being presented with the opportunity to revise these to optimize performance, predictive simulation equips executives with confidence and reassurance the decisions they make are the right ones.
It delivers foresight on supply chain performance through mapping insights from production; product mixes; sites; transportation constraints; costs; environmental factors; and demand. And through identifying the relationship between seemingly conflicting processes, such as purchasing, production, distribution and sales, it provides clarity on the impact of trade-offs. Typically this might mean making a choice about whether to pursue a strategy focused on local production with lower transportation costs, versus overseas (lower cost) production and higher transportation costs.
This visibility and control facilitates all important responsiveness and agility which are crucial in fostering a dynamic supply chain fit for modern business environments.
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