Objective:

Develop a solution to better predict supplier outages, allowing firms to avoid production disruption by pre-ordering at-risk materials or ordering from alternative suppliers.

Key Challenges Addressed:

1) Existing manual purchase order and risk assessment processes are labor intensive resulting in slow and reactive decision making

2) Current supplier risk assessment reports are not always accurate due to manual report generation and underlying data issues

3) External data sources such as weather forecasts and news reports are not prebuilt into the system

How do we address your challenges:

Real-time data fetching to get factors indicating risk to the business
1. Extreme Weather Event History: For all the supplier locations, refreshed monthly
2. Weather Forecast: For the same supplier location, refreshed each week. It captures fields for temperature, rain, snow, and wind.
3. Port Congestion: For the supplier and receiver ports, it captures about 12 fields per port and is refreshed each week.
4. Traffic data: This is a massive data fetch exercise. More than a million data points for the commute route are refreshed weekly.
5. Social media data: download all the tweets, reports, and alerts from the selected news handles and articles. It generates over 200k data points from all of the handles.
Quantify and qualify the downstream impact on the supply chain:

Our solution will effectively link unplanned events like weather disruptions and geo-political instability to potential supply chain network disruptions.
For example, heavy storms in Southeast Asia could reduce the capacity of my primary supply base by 60% for three weeks.
This solution provides connected insights into the impact of supply chain disruptions (across areas such as transportation, store operations, DC operations, fulfillment, and so on) in both planned and unplanned events, providing a holistic idea of the impact and $ values involved.

E.g., a 60% risk to my inbound supplies could lead to

Reduction in OTIF by 22% for certain key categories
Predicted excess in transportation capacity by 4% and warehouse labor capacity by 6%.
Potential revenue loss of $500k

Intelligent Supply Risk Management Solution by Tredence

by Tredence Inc