Manufacturing companies often lack visibility of the procurement interdependencies between the suppliers within their supply network. However, knowledge of these interdependencies is useful to plan for potential operational disruptions. In this project, we develop the Supply Network Link Predictor (SNLP) to infer supplier interdependencies using the manufacturer’s incomplete knowledge of the network. SNLP uses topological data to extract relational features from the known network to train a classifier for predicting potential links. Using industrial test cases, four features are extracted: (i) number of existing supplier links, (ii) overlaps between supplier product portfolios, (iii) product outsourcing associations, and (iv) likelihood of buyers purchasing from two suppliers together. Naive Bayes and Logistic Regression are then employed to predict whether these features can help predict interdependencies between two suppliers. Our results show that these features can indeed be used to predict interdependencies in the network and that predictive accuracy is maximised by (i) and (iii). The findings give rise to the exciting possibility of using data analytics for improving supply chain visibility.
Funded by: Aviva
Researcher: Edward Kosasih, Ajmal Aziz