Figure 4: Supply planning solution factors
Performing scenario modeling and what-if analysis as part of the planning process can provide businesses supply flexibility over frequently changing deployment plans (created due to shift to the right, sensitivity analysis), and inventory costs. Additionally, estimating the impact of changes in different parameters can inform policy decisions. Multiple scenarios can be compared for operational and financial impacts, and the baseline can be set after a cost-benefit analysis. Similarly, KPI reporting from the analytics platform with a consolidated data view can help identify the root causes for issues and assist with supply planning to generate business insights, visualize trends, and provide specific patterns. Alerts to internal and external stakeholders for certain cases, such as exceptions, late orders, and over- or under-used warehouses, can also be enabled. Thus, integrated supply chain planning functionality (e.g., near real-time planning) can enable unified planning across deployment, supply, inventory, and financial aspects.
Supply performance issues during deployment peak periods of smart meter deployment can be immensely costly. For instance, stock issues can hamper engineers from installing meters or taking customer appointments, resulting in missed MAP revenues and GSOP failure penalties. Warehouse cost also involves storage, handling, and transactions and is closely tied to buffer stock and delivery frequency. At the same time, the stocking principles applied in logistics operations drive aged asset rental costs. Advanced analytics can help reduce aged assets from 30% to 10% of the available stock, saving millions in cost over the course of a few years. It can also expedite tactical asset planning activities, thereby improving planning efficiency and sparing more time for strategic planning where advanced scenario modeling can drive value-added insights for deployment ambiguities.
Driving value through collaboration
By investing in advanced analytics and platforms, a business’ maturity in supply chain planning can evolve from a "siloed" or “reactive” state to a “collaborative” or "integrated” state by bringing together demand, supply, inventory, and financial aspects of planning on a single platform and driving further value through advanced analytics. Integrated supply planning can help businesses overcome operational and financial challenges while mitigating risks and driving cost savings in millions over the course of the deployment period and associated ramp-up of smart meter volumes. Furthermore, integrated supply planning can help make policy decisions and improve the overall efficiency of the asset-planning process.