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Complexity factors from dynamic processes, varying priorities, huge data volumes and interdependencies may not seem too obvious at first pass. Let’s look at some of these issues.


The Data
Data is at the core of the challenge, not only by sheer scale (with its hierarchies and attributes), but also because of the sets of relationships and patterns that emerge through the interactions of people and processes.
The Data Explosion
Managing data requires speed and precision —both at a strategic level (setting up the network, including infrastructures (warehouses, and factories) and making process changes) —as well as at the tactical level: the explosion of data streams from sourcing decisions, transportation route management, and managing product demand/supply. Each link in the chain has its own characteristics, though. Each product its own attributes. Each market its own challenges. Each customer their unique requirements, lifestyles, and wallet size. And each partner their own capabilities and limitations.
For example, a product sold in one market has different taxes (and therefore lower or higher cost) than another. In one channel, the packaging and bundling of a product (single use or value packaging, for example) is different than another. Some customers want large safety stocks to buffer uncertainty, some want low. Products have different compliance regulations associated with them. What is packaged in a box changes by country, so kitting and bills-of-material are different.
And all that data is constantly changing, often by the minute.
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