Supply assurance has been in greater jeopardy than in recent years for companies involved in producing or distributing physical goods in the United States and other countries. In volatile supply chains with container delays, congestion at the ports, higher prices and labor shortages—including the shortage of truck drivers—nothing is certain. Questions like “Will I have enough stock to keep production running each day?” have no clear answers.
Hundreds of variabilities compound across each supply chain node. For both domestic production and outsourced, simple calculations to compare stock on hand and receipts with demand are impossible. Complicated probabilities combine what’s happening in the supply chain with fluctuating demand, supply and transportation lead times, making component and product shortages likely but unpredictable. This leaves firms at risk of short supply and service gaps at every stage for all consumer goods, from raw materials to end customers and from toilet paper and computer chips to grocery store items. The effects extend across internal operations and outsourced manufacturing and distribution.
E2open Supply Sensing enables you to determine the probability of material shortages and service shortfalls over time for your entire global supply chain—and recommends actions to mitigate these risks. This unique approach uses AI to analyze real-time signals reflecting what’s happening in your supply chain right now—such as purchase order activity, forecasts, replenishments and changing inventory levels at every tier—combined with variabilities in supply, demand and transportation. Early visibility and awareness of the service risk at various time horizons help your company proactively mitigate risk, assure supply continuity and avoid financial penalties.