Find 1 newspaper article; on real corporate example of supply chain issues faced by an industry or

organization -
• https://economictimes.indiatimes.com/markets/companies/jlr-says-chip-shortage-
to-sink-volumes-by-50-lead-to-1b-pound-outflows-in-
q2/articleshow/84168361.cms?from=mdr

o What was the supply chain problem talked about in the article? Please identify the
relevant metrics for the problem statement
o An ongoing global shortage in semi-conductor chips is going to lead to a 50 per cent decline
in production for Jaguar Land Rover in the September quarter as the automobile maker
struggles to make alternative arrangements, the luxury carmaker said in a press note.
The automotive sector, which relies on chips for everything from the computer management
of engines to driver assistance systems, is still the hardest hit. Companies like Ford,
Volkswagen and Jaguar Land Rover have shut down factories, laid off workers and slashed
vehicle production: Revenue losses due to non-availability Semiconductors & IC Chips
o How did the company prepare / did not prepare itself to face the problem?
o Tata Motors – JLR was not well prepared to face this problem at the same time they could not
anticipate this issue in early stages. That Semiconductor & IC chip shortage & Short supplies
not only hits global auto maker but Electronic Home appliances & Mobile phone maker also
facing acute shortage of Semiconductors. There were several articles published in news
papers and even news channels forecasts about shortages of Semiconductors during Covid
19 periods.

How did analytics help or how it could have helped in the given situation?
o The supply chain is a critical piece of the puzzle for business success, because it directly
affects a company’s ability to provide a positive customer experience while also accounting
for many of the expenses that affect overall profitability. The supply chain is a network
between suppliers, a business and the end user, covering everything from raw materials
sourcing to delivery to the end consumer. Supply chains involve many different activities,
people and organizations, which produces an immense amount of information. This is where
supply chain analytics come in—they can turn that overwhelming amount of data into
digestible dashboards, reports and visualizations that influence key decisions and lead to
better results. Easy access to these analytics has become critical in a landscape that
continues to grow more competitive. Supply chain analytics is the analysis of information
companies draw from a number of applications tied to their supply chain, including supply
chain execution systems for procurement, inventory management, order management,
warehouse management and fulfillment, and transportation management (including
shipping). Software may have its own reporting capabilities that shed light on that specific
step in the supply chain, like predicted lead times for suppliers, current safety stock levels at
the warehouse or orders fulfilled per hour. But supply chain analytics are most powerful when
all these systems are integrated, usually via an Enterprise Resource Planning (ERP) system. The
ERP itself or a separate application can then present and illustrate data from across your
global supply chain through dashboards or reports. Supply chain analytics make it possible
for companies to gather, assess and act upon the data generated by their supply chains. It
allows them to make not only quick adjustments, but long-term strategic changes that will give
the business a competitive advantage. supply chain analytics include demand planning (using
historical data and other factors to predict what customers will order); sales and operations
planning (manufacturing and/or purchasing the goods an organization needs to cover
forecasted demand); and inventory management (tracking sell-through of items and which
SKUs it needs to replenish). Each of these activities can increase the overall efficiency of
business operations, which can lead to sizable cost savings.

Propose an analytics solution: An organization can do analysis of News articles published &
Broadcast through Text mining algorithms and abstract meaningful information & insights as per their
need & requirements, these insights may help to take business decisions timely. An automated text
mining-based approach to aggregate news stories from various sources and create a News Corpus.
The Corpus is filtered down to relevant sentences and analysed using Natural Language Processing
(NLP) techniques. A sentiment metric, called News Sentiment, utilizing the count of positive and
negative polarity words is proposed as a measure of the sentiment of the overall news corpus. They
have used various open-source packages and tools to develop the news collection and aggregation
engine as well as the sentiment evaluation engine. Random Forest and Naïve Bayes classification
algorithms performs good in text classification.

Point out if the proposed solution is descriptive/ predictive/ prescriptive and how?
Once organization get insight form news that there may be shortages of Semiconductors & IC Chips
in coming months and may extend for 12 to 18 months. They can use SCM Predictive analytics model
Predictive analytics help companies predict what could happen and the business impact of different
scenarios, including potential supply chain disruptions and other outcomes. By forcing leaders to
consider these possible scenarios before they happen, they can be proactive rather than reactive.
They have time to prepare a strategy for an expected spike or fall in demand and can react
accordingly. With predictive analytics, businesses can better prepare for short-term supply chain
exceptions such as shortages of semiconductors & ICs. By preparing for exceptional situations in
advance, they can adjust shipments and inventory in response to specific, time-sensitive changes in
inventory. Predictive analytics also help companies to make the right operational decisions
proactively. These projections also allow for the rebalancing of assets across any supply chain at a
minimal cost.
Indicate the list of datapoints to be considered for the proposed solution.
# Demand forecast # Safety Stock of Semiconductors & ICs # Inventory of Semiconductors & ICs #
No. of Suppliers of Semiconductors & ICs # Search of new suppliers globally # Alternate material &
Alternate suppliers # Market Intelligence # Competitor’s activities # Customer choice & preferences

In any supply chain planning system, safety stock is an extra stock to avoid stock out or fulfil the
uncertain demand at any point in time. Adequate safety stock levels permit business operations to
proceed according to their plans. Safety stock is held when there is uncertainty in the demand level or
planned delivery time for the product; it serves as an insurance against stock outs.
As team noted there may be scarcity & Shortages in Semiconductors & ICs supplies from vendors,
Planner forecast demand in system for 9 to 12 months based upon demand and anticipating
shortages of Semiconductors & ICs buyer may do followings
1. automatically generated dashboards combine data from multiple sources on many segments,
such as a company’s supply chain and a semiconductor player’s commitments.  The use of
analytics to match supply with demand helps reduce a cumbersome and error-prone manual
effort. The goal is to provide clear input for internal communication and for communication to
suppliers and customers.
2. collect and analyze more sophisticated intelligence on the semiconductor value chain and
chip-manufacturing locations.
3. In such scenario company must avoid JIT approach for Semiconductors & ICs supplies and In
ERP immediate increase safety stocks levels & Inventory levels – put in auto mode so system
pop up messages as and when there are safety stocks levels & Inventory levels down,
trigger re order point so buyer immediate release purchase orders of buying of materials.
4. The SCperf R package includes specific functions for calculating appropriate safety stock
levels and reorder points based on the inventory depletion, and the demand rate.
5. In ERP check no. of suppliers of Semiconductors & ICs, Add and activate more Quality
suppliers to meet future demands. Start search globally for supplies
6. In ERP start close monitoring of key RMs on weekly/Daily bases – Dash board/ Analysis
7. Forecast Model – It can be Automatic Selection; a model can be assigned like G as Moving
average or W-Weighted Moving average etc. in SAP ERP