Project:
Cash Supply Chain Visibility and Capacity Analysis
Result:
A visual tool to analyse the current cash supply chain, identify inefficiencies and identify cost saving opportunities.
1. Problem Statement
- The cash supply chain is managed independently by the various stakeholders, this creates a lack of visibility and multiple inefficiencies which includes:
- Surplus /shortage of sorting capacity in specific areas;
- Unnecessary movement of cash between regions;
- Increased cash due to safety stock and bullwhip effect;
- A holistic view was required to on an industry level to understand the demand in the various areas as well as the capacity for cash handling (sorting, transportation etc.)
2. Solution Approach
- Supply chain data was sourced from all cash supply chain stakeholders, this includes location-, holding-, movement- and transactional data;
- Data was standardised and a single SQL database was populated;
- Areas were grouped using clustering algorithms (k-means) to group entities and enable analysis on an area level (21 areas were selected);
- Analytical reports were developed in Tableau to analyse the current supply chain and to develop future scenarios with benefits (financial and operational) on and industry level;
3. Project Outcomes
- A standardised dataset (SQL database) representing the current cash supply chain;
- Tableau reports to analyse the current and changes in the cash supply chain;
- The following recommendations were provided to the client:
- Adjusting storage limits and storage requirements in specific areas;
- Changing the supplier/sourcing strategy in specific areas;
- Creating additional facilities and consolidation of facilities;
- Business cases indicated annual savings of more than R90m per annum;
