Self Correcting

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What is Self Correcting?

Self-correcting is a neo-managerial process that identifies faults in a supply chain and takes the necessary steps to correct them, if possible. This tool is used either to identify underlying supply chain faults or automatically correct them if the solution falls under the scope of the self-correcting tool or algorithm. Some examples are inventory availability identification, supplier yield times, etc. 

Significance of Self-Correcting in an E-commerce Shipping and Delivery

The emerging concept of self-correcting has shown its capability to decrease the turnaround time in supply chain management and further optimize it when a new service is included. 

  • Decreasing turnaround time: All the underlying issues are identified through a self-correcting tool, and the necessary changes are made. Since the problems are addressed, supply chain efficiency increases. 
  • Optimization: Supply chains are the lifeblood of every business, and brands are always on the lookout to improve them by adding new technologies or sub-processes. The primary goal of doing the mentioned task is to ensure fluid product movement through the chain with minor hiccups. Therefore, whenever a new subprocess or a system is introduced, a self-correcting tool is used to examine and make the necessary changes to achieve the primary target of tampering with an existing supply chain.   

Prerequisites of Self-Correcting and How It Works

As every brand has a supply chain, there are no prerequisites for introducing a self-correcting tool within the ecosystem. However, once the said tool or algorithm is introduced, it works in the following ways. 

  • Examination: Once a self-correcting algorithm is introduced, the supply chain is examined for any underlying faults. 
  • Optimization: When a fault is identified, the tool or the algorithm makes the necessary changes. Sometimes, an alert message is provided when the solution for fault rectification is outside the scope of the self-correcting tool. 

Use Case with Self Correcting

A brand based in Manila city has an average monthly order rate of 1,000 watch units. Accordingly, an inventory level of 1,200 units is maintained at the start of each month. However, the self-correcting tool forecasted a colossal spike of 1,500 units in August. Following the suggestion, an additional stock of 400 units was ordered. Subsequently, the brand sold out 1,800 units in August, and they were able to leverage the unforeseen spike.

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