This is a fascinating report about global trade, with many interesting statistics, and with points of view not often presented so cogently.
Authors Susan Lund, James Manyika, Jonathan Woetzel, Jacques Bughin, Mekala Krishnan, Jeongmin Seong, and Mac Muir point out that global trade in services already probably exceeds that for goods. If a fair value is placed on it, we would see the US trade deficit, for example,wiped out and replaced by a larger surplus. They also point out that labor is a declining factor both in the value of production, and in labor cost’s ability to determine where products get made. The intellectual property value is much higher, and often moves in reverse fashion to the goods. But it is hard to price into conventional labor statistics.
I can’t wait to read the whole document!
via Globalization in transition: The future of trade and global value chains | McKinsey
Here is the full document link.
MIT’s Supply Chain blog presented a nice research study by Minhaaj Khan and Srideepti Kidambi and supervised by Dr. Tugba Efendigil. Their study is a good example of using less data rather than more to design a simple readily explainable approach that increases profits while reducing errors in ordering. It’s an easy win. Will it work in all scenarios? No, probably not. But it also doesn’t take long to try and implement. Occam’s Razor in action. It’s interesting they did not even need to know about promotions to achieve their gains. In many businesses the promotions can wreck plans. But in this consumer product it turns out they don’t disrupt.
Big data can sometimes confuse us rather than enlighten.
via Driving Risk Out of S&OP Forecasts
I am starting to write some analytics essays using R and Rmarkdown, and publishing variously in HTML and pdf. They are gathered here.
This is probably temporary as I learn better how to do this.
Essays using R