Big Data for supply chain managers

I really liked this article for supply chain managers.  From MIT


Here is the link to MIT -  "While some industries like health care and retail are starting to see the transformational potential of big data and predictive analytics, these strategies haven’t quite panned out for supply-chain managers. Why......"  

Health care systems and analytics for improved operations

Operational analytics in health care developed since the integration of big data systems.  These systems help doctors and nurses work without restrictions by allowing more information about patients, and speeding up the delivery of diagnostics by providing real time test results.  Diagnosticians can view recent medical interventions given to a patient that would otherwise be unknown in a paper based system. One issue big data systems have is that the amount of data collect is so large that extracting value from it takes constant analysis and when potential value is discovered, decision makers need to give consent to make changes in the system.
Our health care analytics takes a detailed and comprehensive approach to operational improvements.  We identify key aspects of operations and make improvements based on patient flow and the utilization of assets. We can discover bottle necks and system wide optimization improvements that will increase the flow of patients and reduce overtime for staff and administration.
We also can optimize scheduling to address overtime issues while complying with state and federal regulations.  We often discover that reducing work load of each employee by optimizing the quantity of workers can produce a happier and well rested staff.
Databases can offer additional insights such as when a clinic or hospital should grow or downsize,  in source or outsource services,  optimize procurement and inventory management.

Supply chain software. Overpriced

Notice SAP? 
I did.  Notice how there is not price.  I did.  That's because basic supply chain principles are being sold as a software package but nothing changes the analytics.  Fundamentally, this software has the analytics of generic supply chain management principles.  It doesn't offer any insights on how you can improve your supply chain anymore than someone collecting various amounts of data. 

Health care delivery operations. An answer to the countries health care crisis

Health care delivery operations are extremely complicated due to the quantity and variety of medical professionals, medical instruments, testing and treatment.  For a single person to enter into an emergency room, all these things need to be used with speed and accuracy.  Complications can lead to lawsuits and lawsuits lead to less profits and higher delivery costs for hospitals and clinics.  In such a complicated and sensitive system, how does health care operation consultants view such an organization.  Well the answer is from the patients perspective.  health care delivery can be organized in such a way to maximize the through put of patients and/or speed of health care services.  There is more than just one trade-off, that needs to be acknowledge by the health care system,  for an expert in operations to address the growing concerns in health care delivery.
Since health care costs have been sky rocketing for what seems to be for the entire existence of the modern health care system,  health care organizations, economists, and various other experts have tried to adjusting the payment structure to address political and economic issues.  This is not a win-win situation but just a shift in cost that that avoids improving the operations.Operation experts do not restructure payment plans to address higher costs but offer insight to how things can be done more efficiently and effectively.
The evolution of supply chain management and logistics has come to a point where it can address the complications of the health care industry.  Advanced health care operation analytics and the existence of new “big data” structures to track and monitor operations can be combined to address the rising costs of health care better then a change in payment structure. Health care Executive (especially hospitals and large clinics) need to acknowledge the vital role a health care operations consulting firm can play in delivering high quality operational improvements with speed and accuracy.

External Resources:

• The Camden Group
• US Department of Health and Human Services
• A $179 Healthcare operation handbook
• HIPPA Definitions
• Glossary of Common Terms Health Insurance Portability and Accountability Act 1966
• Walk In Clinic Operations Overview

Omni-Channel Retail strategies, How to communicate with your customer

Omni-channel commerce is becoming the strategy of choice by most retailers as a way to compete with Amazon’s Supply Chain. Companies are now using more store stock as the inventory of last resort to fill an e-commerce orders.  Omni-channel retail strategies are often seen by supply chain consultants as a response to changes in the market place and how people shop.  Online commerce is growing at a staggering rate and retailers need to build a optimized distribution network to compete with other online retailers. 

Same day delivery service might catch on as well but is at least a few years away from being the required norm from customers.  Amazon and Ebay are testing this concept in various cities in the united states.  This includes their own delivery vehicles so the traditional door to door delivery services might end up loosing if they cannot provide better logistical support than online retailers. 

Omni-channel retail strategies concentrate on a seamless approach to logistics and is the evolution of multichannel retail strategies.  Customers are desiring to use multiple channels including their smart phones to make purchasing decisions.  This trend is leading businesses to learn how to connect to their customers in non traditional ways but this is still fundamentally a communication process.

The Importance of Demand Forecasting in Supply Chain Management

Demand Forecasting has been used in various ways to optimize profits and reduce unnecessary production.  With accurate forecast models, a business can produce goods as needed.  This in-turn will reduce the need for warehousing space and allow for proper assessments of machinery needed to produce enough goods to meet market conditions. 

With the trend towards just-in-time supply chain systems demand forecasting plays a very important role in supply chain management.  Without accurate forecasts, businesses risk increases inventory, transportation, and administrative costs. 
If we measure the cost per square foot to maintain a certain inventory level and add in the working capital needed to fund inventory that could otherwise be kept in an interest barring account, inventory costs are significant.
Demand forecasting will give insights to make better business decisions and will help your organization become a model for operational excellence.
For more information about demand forecasting please contact our supply chain management consultants at operationconsultinggroup.com

Historical overvew of Supply Chain Management

The evolution of supply chain management has had six major movements starting with its first appearance in 1982 when Keith Oliver coined the term during an interview with Financial Times.  Although the term look almost a decade to become seen in various books and articles a major tipping point for supply chain management came much earlier with the invention of the assembly line.  This manufacturing process allowed a company to produce products in much larger quantities than previously believed possible. The benefits were apparent and supply chain management, although not coined at the time, became a source competitive advantage and organizational growth. 

In the 1960’s electronic data systems accompanied with enterprise resource planning lead to better integration capabilities.  The various links in a organizations supply chain was never looked at as a whole to such an extend.  Communication and collaboration became the norm and a fragmented system started to consolidate by the 1980’s. 

By the 1990’s functional integration and the development of logistics led to an even more prevalent study of supply chain management.  With the integration of information technology, marketing, and strategic planning, Supply Chain management become an important field of study because of the cost benefits associated numerous examples of operational excellence.  by the 2000’s supply chain management could capture significant value for many large corporations. 

Health Care Supply Chain Consulting

The health care supply chain is becoming more complex with the changing life cycles of and expanding portfolio of pharmaceuticals.  International supply chains must be carefully evaluated to respond to emerging markets and millions can be saved by planning accordingly.  Health care consulting firms have recognized trends to help healthcare organizations optimize supply chains.
Health care consulting has taken principles from multiple industries to address the logistical needs of healthcare firms. Manufacturing and retail principles have grown into models of operation excellence and healthcare consultants have bridged these principles to increase profitability and efficiencies.
Consultants often suggest better segmentation, increased supply chain scalability, globalized standards and improved collaboration.  The implementation by healthcare consulting firms is difficult but well worth the investment for firms looking to lower costs and expand globally.  Pharmaceutical firms can see an increase in profits from 9%-11% across the entire supply chain however medical supplies and devices can have profit increases up to 20%.  If your considering hiring a health care supply chain consulting company

Too Much Focus on Negotiation

It has come to my attention that too many companies focus on reducing costs in their supply chain by trying to negotiate lower costs with suppliers.  Negotiation will always have a place in supply chain management however when buyers ask their suppliers for lowered costs, they are really attempting to shift costs down the supply chain and not increasing its value.  Supply chain management operation consulting has helped spearhead efforts to increase the value of the supply chain because shifting costs is not the win-win situation most people talk about. 

Consultants in supply chain management as well as financial analyst and executives are seeing trends. They more often than not agree that competition in the future will be focused on an efficient supply chain that is nimble and customer focused.

Online retail has grown significantly and is becoming a larger percentage of total sales.  Amazon  ’s logistics has forced retailers to develop strategies to compete. But how is this done?  Its not always a focus on improving shipping. The supply chain needs to match customer’s expectations and provide nimble operations.  This means reducing waste and optimizing business process to see increased value in the supply chain.

Peter Klausz, a senior supply chain management consultant at Operation Consulting Group in New York, NY agrees. “Don’t replace negotiations but focus on every link in the supply chain; Use advanced data analytics and qualitative observations to zero in on improvements”

Negotiations will always have a place in supply chain management however it shouldn’t be the only focus for cost reductions.

Walk-in Clinic Operations: How to Improve Health care Delivery Services

How to save more health care dollars through operation improvements
There are many sources of variability in walk-in clinics that quality operational analysis and consulting can help reduce in order to save more health care dollars.  Sources of variability will include:

• Walk-in Clinic Demand (arrival of patients)
• variability on total physician hours in walk-in clinic
• Types of ailments varied from colds, nausea, respiratory illness, acute appendicitis and chest pains.
• Nurse diagnosis time
• Physician diagnosis time

A pre-triage process flow could be described as a first come first serve bases.  This often leads to long waiting lines from sign-in to treatment and the urgency of the condition is not prioritized.  
Example of Pre-triage Walk-in Clinic Process

1. Collect information (3 min)
2. Patient waits (X mins)
3. Receptionist requests medical records from the Med. Record Department (9 min)
4. Clerk Verified accurate patient information (5 min)
5. Records placed in pile (7.5- 20 mins)
6. Patient seen by nurse when record reaches top of pile
7. If minor Nurse provided treatment (max 10 diagnosis min), otherwise patient returned to waiting room and waited for a physician

Operations Consulting Group can take this process and reduce the waiting time for patients significantly by taking into account variability and limitations of your assets.  In the Example above the wait time for patients was reduced from 10-20 mins to under 7 mins on average.
Not only can wait times be reduced but profits as well.  Combining these to objectives is often synergistic.

Supply Chain Management Consulting Services

A business’s supply chain can be a source of competitive advantage and a way to generate growth.  Supply Chain Management can effectively increase profits by optimizing the flow of goods.  This includes your supply of raw materials, work-in-process inventory, and the flow of finished goods to your consumer.  Operation Consulting Group helps companies become a leader in supply chain management to best their competition on costs and delivery of goods and services.