May 10, 2016
This week we shared our Q1 2016 results, which demonstrated continued strong demand for our supply chain intelligence cloud. Our performance, coupled with recent funding news, has sparked growing interest in FusionOps – specifically, what’s fueling our rapid growth? The daily headlines filled with the difficulties companies are facing with their supply chains present an easy response for me:
You, the consumer, are driving the demand for FusionOps.
Driven initially by Amazon’s relentless supply chain excellence, consumers have come to expect that their brick-and-mortar stores will have the product they want in-stock. Few of us have the patience to wait anymore. And when there are “stockouts”, we vote with our wallets and purses and look elsewhere. The supply chain has become the critical source of competitive advantage that is determining winners and losers in the market.
Consider Target’s recent notification to its suppliers: they will have single date delivery dates, and will face higher fines for late deliveries and possible penalties for inaccurate information. This is just the latest in a series of moves Target and Walmart have undertaken to eliminate stockouts and better manage inventories. In essence, retail leaders are now saying:
Be excellent at supply chain or you’re out.
Fortunately, Target is listening to its suppliers and helping them get where they need to be. Not all companies will be so kind.
Retail’s demands on their vendors are increasing at precisely the same time as omnichannel fulfillment is making it more challenging to excel at deliveries. And this not just a retail issue. If Goodyear and Procter and Gamble sell through Target, then they have to excel at supply chain, and so do all of their suppliers all the way down the line.
Changing consumer preferences are not the only driver, either. Boardrooms today are filled with activist investors eager to increase shareholder value, looking for another penny or two to EPS. They are asking the tough questions: Why couldn’t we ship that order at the end of the quarter?; How can we reduce working capital without impacting our ability to ship? It seems as if the supply chain is under pressure from everywhere. Executives are being tasked to deliver, and all to often, they lack accurate information to know where to start. Actionable supply chain intelligence has now become a business imperative.
FusionOps is a platform that brings supply chain transparency and intelligence throughout our customers and their ecosystem. A recent analysis of our user base validated just how pervasive the use of FusionOps is for companies. From operations, marketing, finance, and sales to supply chain planner and buyer to manager, director, and executive VP – FusionOps enables all of them to be armed with the same, accurate information to take action. As many of our customers have told us, FusionOps has eliminated time consuming and often argumentative meetings determining which team’s data is the one to trust. Having one trusted supply chain intelligence source that pulls across the broad range of existing information systems, including unstructured data sources, is a massive leap forward towards supply chain excellence.
Now is the time to form trusted partners with suppliers that bring more than tools, they bring supply chain expertise. We have made it possible for any company to take advantage of machine learning and millions of MonteCarlo simulations in their demand forecasts and inventory optimizations on our scalable cloud over night. Why not give it a try?
Looking to be excellent at supply chain? We can help you make it happen.