Supply visibility is beneficial to an organization as it makes companies more reliable and responsive, which leads to increased customer satisfaction, thus enabling companies to outperform competitors. . Supply chain visibility results in improved on-time delivery, reduction in lead times, reduction in working capital and an effective variable cost management, customers can be updated on product availability and shipment status and products can be tracked and traced throughout the entire supply chain. It has been discovered that companies with supply chain visualization, experience superior financial performance with profit margins ranging from 19 to 73 percent higher compared to other companies. Safeway improved visibility resulted in increased sales and a cost reduction of about a million dollars along the entire supply chain. 2.What was the limitation of Excel-based data analytics at Safeway?
Managers at Safeway used spread sheets to gather and compile inventory data and determine how stock outs trended company-wide. Spread sheets were constrained in its ability to identify trends across a specific brand or Universal Product Code (UPC).Spreadsheets could not accommodate the humongous data if trend for each specific brand is to determine. The bull whip effect could a consequent effect …show more content…
This limitation faced by Safeway led to the use of data visualization. Safeway’s inventory management was improved upon by Deloitte Consulting by employing the Highly Immersive Visual Environment (HIVE) to improve the data visualization in regards to its Supply chain. The Deloitte HIVE is where executives bring huge data sets to Deloitte, which could be spreadsheets with columns numbering over a million .This data, could include social media feeds and geospatial elements get crunched. The HIVE has a displayed technology where data can be touched and manipulated. Executives of both Safeway and Pepsico learn in a short amount time what might have taken months of meetings, demonstrations and business pitches
4. What steps did Safeway and PepsiCo undertake to arrive at their data visualization solution?
There was a collaboration among representatives from Safeway and Pepsico to comprehend how to reduce the number of “number of days of supply” while maintaining service levels from their supply chain. Data visualization was built to explore questions regarding stockouts. The data included UPC barcodes, cost, districts, store numbers, out stock of scan codes, and out stock reason codes. After the visualization technique was decided upon, three processes were designed to operationalize it. The processes