The COVID-19 crisis has exposed and exacerbated the challenges faced by organizations in predicting consumer demand and continually adapting highly complex supply chains that function at a global scale. The unprecedented fluctuations in demand during the crisis, where consumers stock up on necessities while abandoning other categories entirely, emphasizes the need for a more continuous picture of demand, inventory, and the workforce, so that organizations can more actively adapt their operations.
McKinsey’s recent recommendations for executives to better respond to the crisis called for shortening time for analysis and taking more rapid action.
“Our analysis of prior economic recessions indicates companies that take thoughtful and swift action can build the resilience needed to weather the storm and emerge stronger…This pivot requires a new type of planning. Most annual planning processes can take six to nine months, but in-crisis planning must be done in a fraction of that time.”
Making fast and accurate decisions under quickly changing circumstances is a tall order. Active analytical solutions, capable of instantly processing and analyzing complex data at speed and scale, can help by providing a real-time understanding of inventory, demand, corresponding supply chains, and other factors. These next-gen technologies that enable agile and data-driven decisions will be vital in navigating an increasingly complex and fast-moving environment.
Andrew Wooler, Business Development, Kinetica