Thanks to the probabilistic forecasting engine that we released last year, our capacity to optimize supply chains has dramatically improved over the last couple of months. Through our growing experience, we have come to realize that there are 5 principles that drive the success of the supply chain initiatives undertaken by Lokad:
- All possible futures must be considered; a probability for each possibility.
- All feasible decisions must considered; an economic score for each possibility.
- There are no absolutes, only relative costs and opportunities.
- Being in control requires automation of every mundane task.
- Data requires more effort and brings more returns than you expect.
We decided to name this approach: quantitative supply chain.
You can also read our full Quantitative Supply Chain Manifesto
The quantitative supply chain approach acknowledges the near-infinite computing resources that are available to supply chain practitioners today. It also puts the management back in control of their own supply chain by freeing up teams from unending manual entries required by traditional solutions.
For 2017, we wish you incredible supply chain performance!