Supply Chain News Bites - Only from SCDigest
 

-October 8, 2009

 
 

Supply Chain Graphic of the Week: Next Generation Event Management

 
 

Exception Notification is Increasingly Prevalent, but Needs to Get Smarter, Understand Context

 
     
 

By SCDigest Editorial Staff

 
 

At the CSCMP 2009 in Chicago two weeks ago, SCDigest Editor Dan Gilmore gave a presentation on "Integrated Supply Chain Planning and Execution," based on the Chief Supply Chain Officer Report on this same topic. (To download a copy of that report, go to: Integrated Supply Chain Planning and Execution.)

Below, you will find a graphic used in that presentation on "next generation event management."

The concept of event management - the real-time notification by various media based on some exception or other event - has been around for awhile, and increasingly used with support from supply chain software companies.

However, to support a more intelligent supply chain, event management systems also need to get smarter by incorporating "context." As shown in the graphic below, an exception is more or less important based on related factors. For example, if a materials supplier is going to be late with a delivery, the importance and severity of that exception is inherently dependent, based on whether there is plenty of inventory still remaining or if the delay may cause a shortage that will shut down a production line. There are dozens of other examples.

 

These more intelligent alerts are key to more effectively manage and filter all the occurences in the supply chain. Some companies have, in fact, developed the beginnings of such smart, contextual alerts, and more will soon.

 

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