Types of AI The consulting firm McKinsey reported in a recent survey that nearly eighty percent of companies are using gen AI – yet a similar number of organisations report no significant increase in profitability. This is the ‘AI paradox’, which is similar to the ‘Productivity paradox’ identified by the economist Robert Solowin in 1987, when the hype about computing … Read More
Scenario Planning for longer view of Supply Chain risks
Uncertainty in Supply Chains Global, but potentially fragile, supply chains have been created over the past forty years. However, the assumptions of an era with relative stability and lower risks has passed, so future developments in supply chains are largely uncertain. The analysis of Risk in supply chains was discussed in the previous blogpost. This considered a period of up … Read More
Uncertainty about your Supply Chains is just an Opinion
A major change Although circumstances around the world are always changing, there are periods of time when more dramatic change occurs. Such a period could be now, with ‘Globalisation’ as a geopolitical objective being replaced in some countries by ‘Nationalism’ and ‘Security’. Articles and podcast express concern about the increasing uncertainties in the world that could affect commercial decisions in … Read More
Know Constraints in Supply Chains and eliminate them
Uncertainty in supply chains a reality The three broad inputs to Uncertainty are Complexity and Variability, discussed in previous blogposts and Constraints. As an input to Uncertainty, Constraints have been a minor factor, but increasing geopolitical tensions and threats from climate change will make Constraints more visible. A Constraint (also called a bottleneck) is defined as ‘something that controls what … Read More
Reducing Complexity in Supply Chains is not a project
Complex and Complexity in Supply Chains The current disruptions in some supply chains provides Uncertainty for businesses concerning the future state of international trade and its effect on operating and investment decisions. But Uncertainty in supply chains contains three elements: Complexity, Variability and Constraints, which are closely linked, with Variability discussed in the previous blogpost. Being complex means that a … Read More