Supply chain outsourcing is set to enter a new age as new opportunities—and demands—are made by companies in pursuit of high performance in a brutally competitive economic environment. These new outsourcing-based opportunities include demand sensing, inventory optimization, supply planning, and network wide visibility / response management services.
The increasing complexity of the supply chain has made demand & supply chain planning business process outsourcing (BPO) increasingly viable and attractive. The sources of this complexity include the need for advanced analytics cognitive reasoning tools to scale the long tail, low-cost-country sourcing in terms of data scientists, need for forecast cycle data management and objective metrics measurement (demand forecast accuracy, Forecast Value Added), and increasing difficulties in sensing a demand signal in the moment by blending and analyzing vast data sets structured and unstructured, within or outside the enterprise. Companies are having a hard time recruiting sufficient data science talent and scaling the adoption of prescriptive analytics in the supply chain domain. Human intensive demand modeling approaches simply do not scale in absence of a big data cognitive platform that can handle volume, variety, and volatility in a cost effective manner.
Since the late 1990s, BPO services have passed through four generations. Cost reduction was, and remains, a top priority, but clients now expect BPO to provide value in more forms (increased competitiveness, higher margins, greater growth potential and so on). To make this happen, GitaCloud offers a combination of cognitive platform / advanced analytics and seasoned resources in data science / demand forecasting to deliver industry-based insights, deep functional knowledge of the demand forecasting / sensing process as we work closely with the client business team to develop an extensive understanding of each client’s upstream and downstream business processes.
Focused on activities such as demand forecasting / planning (sensing / shaping), inventory optimization, and value network wide metrics reporting (Demand Signal Accuracy, Forecast Value Added), the outsourcing of supply chain business processes clearly epitomizes this shift to relationships that are advanced analytics based, value / outcome focused and committed to a wider range of delivered benefits than just cost reduction.
GitaCloud possesses fourth-generation capabilities and is well positioned to adopt next-generation characteristics such as on-demand services (network design, SKU portfolio rationalization), cognitive platforms that enable clients to run their own demand shaping what-if simulations on top of our prescriptive analytics, and use of social media for sentiment sensing as well as enabling network wide collaboration to make decisions in the moment.
Delivering business outcomes that go beyond cost reduction is quickly becoming a table stakes capability, a prerequisite that that business process outsourcing service providers must possess to meet client expectations. However, GitaCloud also believes that two key characteristics are needed to enhance fourth-generation acumen and win supply chain BPO market share:
· End-to-end supply chain capabilities. Ever-greater supply chain complexity and variability on both demand and supply sides of the equation have made it more important to provide a balanced portfolio of services that enable demand driven and market driven planning (demand sensing / shaping, supply sensing / shaping, inventory buffer setting, demand / supply matching to optimize profitability, seamless integration of sales & operations planning with sales & operations execution, network wide visibility & response management).
· Extensive supply chain flexibility. To meet the flexibility requirements of clients, professional services firms must have access to a wide mix of experts (data scientists, BPO operations staff, process / industry domain experts), platform & tools (big data sourcing / blending, demand & supply chain modeling, prescriptive analytics cognitive engine, insights visualization & demand shaping what-if simulation front-end for client business teams), and be able to scale the number and volume up or down rapidly as needed.
To meet client expectations for broader business-wide outcomes, GitaCloud brings together a unique mix of resources with more domain expertise than supply chain execution centric BPOs, while expanding access to leading-edge tools and top supply chain talent.