Supply Chain Planning Newsletter
Lead Article
Predicting Risk with Supply Chain Performance Management Systems

In order to understand the supply chain risks of a business it is important to understand how well you are doing in terms of making the financial commitments that the business has made as part of its planning.  The measurements required span across the entire supply chain from suppliers, to manufacturing, to distribution, and finally sales to the customer.  In order to be able to measure how well the supply chain is doing it is important that the metrics and KPI's used combine both the plan generated by Supply Chain Planning systems, and the actuals that can be obtained from popular ERP systems.  These supply chain performance management systems need to stand at the intersection of the planning system and the ERP system, with the ability to combine the information coming from each.

The ERP system has a great view of the past, but does not generate a view into the future.  The supply chain planning system can look into the future by generating plans, but is not the system of record for the transactional history of what actually happened.  The Supply Chain Performance management system, must sit between the Planning Systems and the ERP system collecting the plans for the year, upcoming months, and weeks.  The ERP system provides the history that can be aggregated to compare to the past plans.  Combined the actual and the plans provide the projection for the whole fiscal year highlighting if a company is on track, or at risk of missing financial commitments.  Only a system with one hand in the future and one hand in the past, along with the intelligence to understand when the metrics signal trouble is up to the job of predicting risk to your supply chain. 
Adexa Update
Adexa hosted an executive roundtable meeting attended by several high level executives of Japanese high tech companies and consulting organizations at Tokyo's Aoyama Diamond Hall. The presentations included Adexa's vision of future supply chains presented by Adexa CEO, Cyrus Hadavi. He explained the learning capability of today's supply chain planning systems and how much more intelligent they can be in future by way if decision automation and self-improving techniques of Artificial Intelligence (AI). 

To request a copy of the paper relating to Adexa's vision of future supply chains, please send request to, Subject line: Self Improving Supply Chain white paper
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