Reducing cost by optimizing your supply chain [English] (GBL212-EN)

Reducing Cost Through Supply Chain Optimization

Global Current Challenges

Economic

  • COVID-19 pandemic's long-term effects on supply chain industry
  • Congestion in ports, shipping, and routes due to uneven demand recovery
  • Political instability, trade disputes, and Brexit impacting supply chain routes
  • Changing customer demands for faster delivery and sustainable/ethical products

Environmental

  • Stricter environmental regulations, such as the EU Green Deal
  • Carbon pricing policies to reduce greenhouse gas emissions
  • Sustainability pressures for end-to-end supply chain visibility

Operational

  • Scattered data across various systems, leading to lack of visibility and inefficient decision-making
  • Time and resource-intensive efforts to consolidate data for a comprehensive overview

Supply Chain Trends Across Industries

Healthcare

  • Explosion of remote healthcare and decentralized clinical trials
  • Complexity in temperature-sensitive and urgent product shipments
  • Difficulty in tracking expired or recalled products

Retail

  • Growing return rates, leading to significant losses for fashion industry
  • Retailers trying to manage returns through charges and data analysis

Manufacturing and Automotive

  • High complexity due to large number of parts (30,000+ for car makers)
  • Difficulty in tracking individual parts
  • Trend towards near-shoring to reduce dependency on distant suppliers

Strategies for Reducing Cost Through Supply Chain Optimization

Visibility

  • Real-time visibility into logistics, warehouses, and operations to monitor performance and track inventory

Improved Demand Accuracy

  • Accurate demand forecasting to avoid excess inventory or stockouts

Optimizing Inventory Levels

  • Managing inventory to meet customer demands, especially during peak seasons

AWS Supply Chain

Key Features

  • Dashboarding and analytics for real-time visibility
  • ML-powered insights to identify supply chain issues
  • Connects to existing ERP systems and ingests data into a supply chain data lake

AWS Supply Chain Insights

  • Alerts on the risk of overstocking or understocking specific products
  • Provides resolution recommendations, considering factors like distance, efficiency, sustainability, and shipping cost
  • Enables collaboration with teammates on rebalancing options

Amazon Q Integration

  • AI-powered assistant within the AWS Supply Chain console
  • Helps answer questions and provide guidance on supply chain operations

Case Study: Bauer Hockey

  • Faced supply chain challenges during the COVID-19 pandemic
  • Leveraged AWS Supply Chain to improve forecasting models by 10-15%
  • Benefited from increased supply chain visibility and planning capabilities

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