Overview

Apex is a stand-alone PC application which simulates the financial performance of a business’s supply chain - end-to-end, from suppliers, through manufacturing, to the distribution of finished goods to customers. The product was researched, designed and produced by Hamel. It is a tool to support business investment decisions, meeting the need for:

Forecasting the impact on the profit & loss account of core operational activities.
Quantifying the long-term operational and financial constrains arising from strategic decisions.

Financial insight

Apex provides detailed financial insight into supply chains by mapping and forecasting:

Real costs and cashflows
Working capital
Service levels
Utilisation rates

In addition, Apex enables users to conduct scenario analysis to identify:

Operational risk
Strategic risk
Financial risk

The analysis is forward-looking and projects financial behaviour over time. Apex can analyse the supply chain strategy of an existing business, or of a business that you intend to create.

Example: Cost analysis

This graph shows a cost analysis of a proposed investment in a mid-sized industrial chemicals manufacturer. The ‘current forecast’ details the expected supply chain costs if the existing business were to continue without the proposed investment in a new production facility. The ‘potential cost trajectory’ shows the best case scenario achievable after the planned investment is brought on stream.

Example: Measuring value at risk

This is a summary of the value at risk due to stock-outs if a proposed merger of two high-street retail groups was to proceed as planned. Our assessment of the supply chain of the proposed merged business identified a lack of storage capacity. This would combine with cyclical peeks in demand to produce significant periods of under supply. The value at risk was calculated using an estimate of long-term brand loyalty and of customers’ propensity to purchase elsewhere at the time of lack of stock.

Example: Net cash flow

This analysis shows the expected net cash flow from a fire-sale of obsolete stock at different discount prices. It formed part of a broader analysis to determine the cash requirements of a recovery plan proposed for a business in distress.

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