How Analytic is transforming Supply Chain

The article (Forbes, Bernard Marr, April 22, 2016, talks about how analytic is transforming supply chain management.

There are many applications can be developed for supply chain utilizing analytic. To manage inventory effectively unstructured data can be analyzed with technology such as digital camera analytic to monitor stock level. Forecasting can be benefited by machine learning algorithm with predictive modeling. Distribution center and warehouse can be operated with minimum human intervention.

How visual analytic will change supply chain across manufacturing? How analytic will change supply chain in the transportation industry? How analytic will change supply chain in the retail industry?

Big Data Analytics Can Create a Better Supply Chain

In the article Big Data Analytics and the Evolution of the Supply Chain, the author gives an overview of how big data analytics can be beneficial to a supply chain.  He delves into supply chain challenges and how big data analytics can help solve these challenges as well as the use of how big data analytics can revolutionize the supply chain.  Big data is widely recognized as a way to better business operations, but its applications are just starting to make the impact everyone believes big data should have.

The use of big data can increase efficiencies in a supply chain by 10% or greater while also decreasing risk.  This decrease in risk is due to the predictive power of looking at older big data and applying it to potential future problems.  Big data analytics can increase traceability in the supply chain by reducing time need to access and manage product databases.  Finally, big data analytics can make companies operations safer in volatile markets by making them five times more likely to report shortened order-to-delivery cycle times.

In overall operations, Big Data Analytics can optimize delivery networks using geoanalytics.  It can allow companies to deepen their relationships with suppliers with more detailed vendor profiles.  Finally, Big Data can have predictive powers.  Using historical data on suppliers can lead to predictive lead times which eliminates guesswork.  In summary, Big Data used correctly can lead to large efficiency gains in a supply chain.


How confident do you feel about the predictive power of Big Data?

Will there come a point when there is too much Data collected and the analyzation of such data could potentially hurt processes?

How close are we as an industrialized society to having to use Big Data in our supply chains to be competitive?

Malaysia risks losing out if it rejects TPP, warns minister

An article published January 15th, 2016 in The Malaysian Insider,, states that Malaysian International Trade and Industry Minister Datuk Seri Mustapa Mohamed believes that Malaysia risks losing its attraction as an investment destination of manufacturers and service providers for the TPP market if they decline to be a part of the trade deal. According to Mustapa, “Malaysia will face more intense competition from Vietnam and Singapore in wooing foreign investments if we do not join TPP,” and “We will also lose the first-mover opportunity, while local and foreign companies operating in Malaysia might scale down their operations.” Over the past 5 years of difficult negotiations over the TPP, Malaysia has been granted several exemptions and flexibilities to help defend its own national interests. Mustapa is also quoted as stating that the “government feels that there are more advantages than disadvantages in joining the TPP.” He was cited stating that wider market access, a comprehensive integration in the supply chain at global and regional levels for small and medium enterprises, and an upsurge in investments as examples of positives of the TPP for Malaysia. It is apparent that Mustapa and the Malaysian government believe that the TPP is imperative for the continued success of the Malaysia economy.

Will Malaysia approve the TPP? Do you the TPP will benefit Malaysia as much as Mustapa believes?

Turnbull shifts tone of US alliance to economics

An article published on January 19th, 2016 in The Australian Financial Review,, discusses several economic issues between Australia and the United States. It states that Australian Prime Minister Malcolm Turnbull is urging the US Congress to pass the 12 country Trans Pacific Partnership deal. According to Mr. Turnbull, “Free trade is not just good for jobs. It is good for security. The more we trade, the more we rely on each other; the more our supply chains stretch across countries and borders the more there is to lose by a disturbance in the security and order on which our prosperity is founded.” Mr. Turnbull not only stressed the economic importance of signing the trade deal, but also how the international norms and institutions that the US has promoted over the last 75 years has helped provide stability and security in prior free trade deals. Turnbull states, “So central is the Asia-Pacific to the world economy, to global stability, that the preservation of the international order and the peace that it brings has been a consistent and absolutely central objective of both the United States and Australia.” It is very apparent that both the TPP and the Asia-Pacific economy are vital to the continued success of many nations, including both the US and Australia.

What could hold back Congress from approving the TPP? Will the presidential elections have any effect on the US ruling for the TPP?

TPP – An Opportunity for Texas

The case study at the following link ( talks about the impact of TPP and the potential benefits for Texas with the Trans-Pacific Partnership.

Texas has important trade and investment ties with TPP countries. In 2011, trade-exports and imports of goods and services with TPP countries supported an estimated 1,160,100 jobs in the state. The TPP will help build on these trade and investment relationships and support the Texas jobs that depend on them.

Texas’s goods exports in 2013 totaled $279.7 billion.  Texas exported $141 billion annually in goods to all TPP markets. Texas’s goods exports to all TPP markets increased by 15 percent from 2011 to 2013. During this period, 53 percent of Texas’s total goods exports went to the TPP region.  The top three product categories exported to TPP-member economies in 2013 were computer and electronic products, petroleum and coal products, and chemical manufactures.

A total of 40,737 companies exported goods from Texas locations in 2012.  Of those, 37,921 (93.1 percent) were small- and medium-sized enterprises with fewer than 500 employees.

Small- and medium-sized firms generated nearly one-third or 30.6 percent of Texas’s total exports of merchandise in 2012.  Small- and medium-sized firms benefit from the tariff-elimination provisions of free trade agreements, as well as many of the other commitments in the agreement.  Trade facilitation, for example, is vital to small- and medium-sized firms, as is enforcement of their intellectual property rights, streamlining of regulatory issues, and other commitments.

Jobs supported by Texas’s goods exports were about 786,000 in 2011 according to the U.S. Department of Commerce data.  In 2011, over one-quarter (26.1 percent) of all manufacturing workers in Texas depended on exports for their jobs.

The TPP will also help Texas companies buy the inputs they need to produce competitive products. The TPP will help strengthen investment ties between Texas and all 11 TPP countries. By removing barriers and strengthening partnerships, the TPP will encourage companies based in TPP countries to increase their business investment in Texas, supporting economic growth and jobs throughout the state.

How Will Industry 4.0 Affect the Supply Chain?

The article posted on MHLnews ( on 16th September 2015 talks about the effects of Industy 4.0 on the supply chain.

Industry 4.0 is essentially a blueprint for digitalizing the value chain from factory to customer. It includes technologies like the Internet of Things (IoT) and the Internet of Services, which in turn create the Smart Factory.

Simon Jacobson has outlined four key aspects of how Industry 4.0  will impact the supply chain:

  1. Smart factories – Automated and flexible manufacturing processes that are integrated with customers and business partners in support of product lifecycle changes – will impact current factory layouts.
  2. The Internet of Services – Connecting production facilities across geographies and company boundaries to create virtual production capabilities will create new business models and disrupt current supply chain designs.
  3. Advanced analytics – Capitalizing on big data and predictive analytics – to drive flexibility at the process level, not just production lines or factories – will put more pressure on organizations to use production data to its fullest.
  4. Focus on the knowledge worker – The rise of smart machines will not see the demise of the knowledge worker – rather, this increasing complexity demands supply chain professionals expand their problem solving and systems engineering skills.

He suggests that chief supply chain officers start preparing for these changes by focusing on Supplier management, Supply chain visibility, Demand planning, Supply network design, and Product innovation platforms  to get the best out of the Industry 4.0.

For more information, Read the article link provided.


B2B information sharing Leading to Improvements in Supply Chain

A blog published in (OpenText Study Proves that B2B Integration Significantly Improves Supply Chain Performance, dtd 4/1/2015) discusses how B2B data integration between manufacturers is helping companies improve their supply chain performance while reducing costs. With the advent of Data sharing (through EDI and other data integration tools) and rise of data driven manufacturing, there is even more scope for integration of demand driven manufacturing planning. The result will be faster turnaround time and elimination of many middle nodes, thus reducing costs and process wastages (a la Uber). What effect will data integration have on traditional supply chain roles? How comfortable are manufacturing companies with 100% data sharing? Does the current data cloud offer enough protection to ensure that data is not leaked to competitors or hackers?