A Few Random Thoughts

This week, I was privileged to attend the INFORMS Analytics Conference in Huntington Beach, California and the IEG S&OP Conference in San Francisco.  I heard some insightful points and thought I would list a couple here (with appropriate attribution) along with a few thoughts of my own.  I hope that at least one strikes a chord with you.

If you use a heuristic to solve a problem with 100% complete and clean data, using a data model that exactly represents reality at any given moment, you still have an inexact answer.  But since such data and data models are rare (or nonexistent), even a pure optimization is still inexact and, in effect, a heuristic solution requiring both art and science on the part of the analyst. (Colin Kessinger, End-to-End Analytics)

If the purpose of Sales and Operations Planning is to make the best integrated decisions for running your business, then you will have a firm, published schedule and people will schedule other meetings (even customer meetings) around it. (Bob Ratay, SAP),

Key capabilities in an S&OP decision-making process are business agility, versatility, and elasticity.  (Olaf Gelhausen, Infineon)

S&OP is about a range, not “one-number” – one plan with a range and distribution of probabilities, but not one number. (Olaf Gelhausen, Infineon)

The best business decisions, even very qualitative ones such as those in the fashion industry are built on a foundation of rigorous data analysis and decision modeling, providing the qualitative decision-maker the largest head-start possible by reducing the “solution space” and delivering insight into the most sensitive tradeoffs.

Working with people is the hardest part of any business challenge – by comparison, the mathematics are relatively easy.

In business planning, longer term investment decisions require detailed scenario analysis.  Near term execution decisions require existential insight into the cash flow changes and their causes.  One might call the latter, “analytical awareness”.

Once sources have been qualified, sourcing decisions among sources (both near and far, “in” and “out”) should be cost-optimized and dynamic (Olaf Gelhausen, Infineon).

Thanks for dropping by Supply Chain ActionPlease feel free leave your random thoughts as a comment below or send them to me, and I’ll try to include them in an upcoming post.

Until next week, always choose life, light and love and don’t forget to laugh along the way.

Have a wonderful weekend!

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About Arnold Mark Wells
Industry, software, and consulting background. I help companies do the things about which I write. If you think it might make sense to explore one of these topics for your organization, I would be delighted to hear from you. I am employed by Opalytics.

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