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There is a famous anecdote about Volvo car dealers heavily discounting green models because consumers preferred other colors. Volvo’s manufacturing plant, seeing the resulting spike in demand for green models, perceived it as consumer interest and upped the production. That’s right…even more green cars! Ouch!!

 

It’s a sad story that’s often repeated, and a story that begins with a demand-shaping strategy to offload unwanted inventory. It’s a prime example of how a dealer’s {read distributor’s} behavior can create confusion and lead to unnecessary increases in a manufacturer’s inventory holdings and, by extension, the stock of its suppliers, too.  


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TECSYS develops innovative software products.

 

Yes, we are a provider of supply chain solutions (and hey, Your Supply Chain Matters!), but underpinning all of that is a team of software development professionals who build our products with the latest technologies and tools. And you, dear blog reader / TECSYS customer / supply chain professional, while assuredly you are interested in our solutions in areas such as demand planning and healthcare point-of-use, I thought you might also want to read something that appeals to your inner software geek!

 

Because we’re all software geeks these days – software is everywhere.  Or as the internet visionary Marc Andreessen says, “Software is eating the world”. His thesis is that the ubiquity of software products and mobile devices has brought our society to a tipping point that will lead to profound change in business, education and healthcare. (Check out this fascinating interview with Andreesen.) The products we build at TECSYS are part of the process that he describes. So in recognition of the significance of software to all we do, I thought I’d tell you some more about our software – how it’s made, and why it’s made that way.

 

In the next few posts I’m going to write about about the technology and design decisions we are making at TECSYS and the rationale behind these decisions; I’ll describe how we go about developing software and the principles we use to guide our work; and I’ll give you some insights in to the challenges we face and how we overcome them. You will see that our clients and the users of our products are key players in our software development, and you’ll learn how you can influence that development. You’ll also gain a perspective on software development which can help you assess and evaluate all of the software you interact with, whatever its origin.

 

Software is eating the world; let TECSYS feed your inner software geek.


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Improved forecast accuracy leads to many downstream improvements in operations and ultimately, on the balance sheet. That is why Gartner, Inc., a highly respected information technology research and advisory firm, puts forecast accuracy at the top of its pyramid of supply chain metrics. In a study published in February 2012, Gartner stated that a 6% forecast improvement could improve the perfect order by 10% and deliver a 10-15% reduction in unnecessary inventory. These are very impressive numbers and a very good reason to work towards improving forecast accuracy.


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