Supply Chain Shaman

FEBRUARY 2, 2024

It is time to bring Manufacturers, Retailers, and Distributors together with Technology Providers in order to better understand the issues and generate ideas to help build the “network of networks.” Brand owner to contract manufacturer or third-party logistics provider to a retailer.) The gaps are large. So, happy Groundhog day!

Manufacturing Procurement 195

Manufacturing Procurement Supply Chain Network Software Supply Chain Planning Software Third Party Logistics 195

Supply Chain Shaman

MARCH 21, 2024

During the 1980s, I was on a management team for a large manufacturer. The Company was attempting to gain economies of scale by grouping manufacturing technologies within a common infrastructure to reap the benefits of a co-generation facility, a centralized warehouse, and a talented administrative team.

Inventory Reduction 376

Inventory Reduction Supply Chain Planning Software Cost Reduction Strategies Supply Chain Design Software 376

Supply Chain Shaman

DECEMBER 7, 2023

Today, I speak at the North American Manufacturing Association, Manufacturing Leadership Conference, in Nashville on the use of data to improve supply chain resilience. Interestingly, in Q3 2023, 38% of manufacturers, distributors and retailers missed their target for revenue guidance for the quarter. The result was restatement.

Supply Chain Design Software 293

Supply Chain Design Software Supply Chain Planning Software Modeling Supply Chain Software 293

Supply Chain Shaman

JUNE 21, 2023

One of my insights from doing the industry analysis for the Supply Chains to Admire each year is that smaller and less well-known companies outperform larger and better-known manufacturers. The analysis is biased toward large process-based manufacturers in the Gartner network. Is this success? I don’t think so. Learning Stalled.

Gartner 334

Gartner Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning 334

Supply Chain Shaman

APRIL 9, 2021

of revenue on information technology (IT), only six percent of manufacturers drove performance at the intersection of growth and margin. Average performance in 2016-2019 across twenty-seven manufacturing sectors on inventory turns, Return on Invested Capital and operating margin was worse than in 2012-2015. Despite spending 1.1%

Supply Chain Planning Software 349

Supply Chain Planning Software Procurement Analytics Supply Chain Performance Supply Chain Software 349

Supply Chain Shaman

NOVEMBER 15, 2023

PWC’s Digital Trends in Supply Chain Survey reports that 83% of manufacturers say that supply chain technologies have not delivered the expected results. The trade-offs of manufacturing and supply constraints are not visible today. This exceeds the 55% previously reported in the Supply Chain Insights surveys.

Supply Chain Planning Software 375

Supply Chain Planning Software Optimal Sourcing Modeling Supply Chain Software 375

Supply Chain Shaman

NOVEMBER 21, 2023

I worked three layers down in the organization for a well-established leader in manufacturing named Dan. Dan had a very manufacturing view and Fred focused on logistics. His goal was to separate manufacturing and distribution inventories to improve his bonus incentives. Dan’s peer was a man named Fred.

Supply Chain Planning Software 313

Supply Chain Planning Software Inventory Reduction Supply Chain Design Software Cost Reduction Strategies 313

Supply Chain Shaman

APRIL 18, 2023

Currently, I am working on a study to understand the value of synchronizing contract manufacturing with in-house manufacturing and procurement. The average brand owner outsources 28-35% of manufacturing, but most coordinate using only spreadsheets and email.

Supply Chain Planning Software 362

Supply Chain Planning Software Supply Chain Design Software Optimal Sourcing Supply Chain Software 362

Supply Chain Shaman

DECEMBER 15, 2022

In the supply chain team analysis, note the 21% gap between procurement and manufacturing teams, the 35% gap between sales and operations and the 21% gap between finance and operations. Organizational Alignment 2012. This seemed bad at the time, but little did I know that it would get worse. Functional Metrics.

Manufacturing Procurement 382

Manufacturing Procurement Supply Chain Design Software Supply Chain Planning Software Procurement Analytics 382

Supply Chain Shaman

SEPTEMBER 28, 2022

The manufacturing-centric company is used to strangling suppliers and demanding terms. The low Return on Invested Capital (ROIC) and the growth below the industry average comes from the lack of network design and organizational alignment between new product development, manufacturing, and procurement. So, you might ask, why?

Manufacturing Procurement 195

Manufacturing Procurement Supply Chain Design Software Network Design Software Supply Chain Planning Software 195

Supply Chain Shaman

AUGUST 18, 2022

This large food manufacturer used a popular technology to forecast monthly using orders as an input. Large Food Manufacturer Thinking About Demand As A River. Through a series of meetings to drive consensus, the team degraded the quality of the demand plan by 27%. The takeaway?

Supply and Demand 251

Supply and Demand Demand Planning Software Optimal Sourcing Supply Chain Planning Software 251

Supply Chain Shaman

DECEMBER 28, 2020

The first story is about a large regional food manufacturer. The second story is about a regional beverage manufacturer. The companies’ planning was in a vicious cycle where marketing programs were growing increasing error, and the lack of manufacturing modeling made it challenging to see what was feasible. (It The answer?

Supply Chain Planning Software 411

Supply Chain Planning Software Forecasting Forecasting Software Modeling 411

Supply Chain Shaman

APRIL 15, 2020

This cross-functional group (sales, procurement, manufacturing, and distribution) is an operational team to manage the day-to-day issues and exceptions in the supply chain. Figure 1 shows a market-by-market planning model by a sinus drug manufacturer. This type of planning needs to be deployed by all consumer manufacturers.

Supply Chain Planning Software 414

Supply Chain Planning Software Supply Chain Design Software Modeling Supply and Demand 414

Supply Chain Shaman

JULY 19, 2020

The focus on financial reengineering–elongation of payables, manufacturing outsourcing, tax-efficient supply chains, lean programs, IT standardization, tight integration to ERP, and business process outsourcing– only moved the deck chairs on the Titanic. Aggregate Results for Apparel Manufacturers for the Period of 2010-2019.

Supply Chain Design Software 387

Supply Chain Design Software Supply Chain Planning Software Supply Chain Design Agile and Lean Supply Chain 387

Supply Chain Shaman

JULY 15, 2021

Consumer goods manufacturers will pay 60-70% more in retail deductions, and the retail struggle to source for the holidays will worsen. Tie the signals to manufacturing–the management of outsourced manufacturing and factory scheduling systems–to ensure schedule adherence. Use Market Signals.

Supply Chain Design Software 363

Supply Chain Design Software Supply Chain Planning Software Price Reduction Forecasting Software 363

Supply Chain Shaman

SEPTEMBER 22, 2021

In our research, we find that 72% of planners primarily depend on Excel and desktop analysis despite the rollout of advanced platforms for planning in 92% of manufacturers with greater than 5B$ in revenue. In this period, 56% of global manufacturers felt that they performed well or very well. The question is, “Why?”

Optimal Sourcing 217

Optimal Sourcing Analytics Software Procurement Analytics Manufacturing Procurement 217

Supply Chain Shaman

FEBRUARY 26, 2024

For example, in manufacturing, the shift in focus is away from OEE to focus on first pass yield and schedule adherence.) Based on the work with Georgia Tech, we are getting clear on which metrics matter by industry. As companies adopt a balanced scorecard, the functional metrics shift to a focus on reliability.

Modeling 204

Modeling Supply and Demand Optimal Sourcing Supply Chain Planning Software 204

Supply Chain Shaman

JUNE 30, 2023

John’s company is a process-based manufacturer and Anne’s ERP solution is a better fit for configure to order which leads to limitations. Would Love Your Help I am researching the value of a network in managing contract manufacturing and could use your help. Don’t fight the fire, use data to drive alignment.

Supply Chain Planning Software 299

Supply Chain Planning Software Supply Chain Design Software Agile and Lean Supply Chain Eliminating Excel in Purchasing 299

Supply Chain Shaman

MAY 31, 2014

Manufacturing teams used to manage the supply chain group. Today, in most organizations, the supply chain team manages manufacturing. The irony is that fewer and fewer people within the supply chain team understand manufacturing. Instead, many of these teams just accept manufacturing strategy as a constant.

Supply Chain Planning Software 265

Supply Chain Planning Software Supply Chain Design Software Manufacturing Procurement Supply and Demand 265

Supply Chain Shaman

JULY 30, 2022

However, two decades later, there is still no technology solution to enable demand visibility or help companies use channel data to translate demand into an inventory, replenishment, or manufacturing strategy. The demand latency for a semiconductor manufacturer is 180-220 days, while a chemical manufacturer has a latency of 150-280 days.

Supply Chain Design Software 195

Supply Chain Design Software Supply and Demand Data Supply Chain Planning Software 195

Supply Chain Shaman

SEPTEMBER 30, 2022

Only 1/3 of manufacturing companies feel that they are equal to current disruptions. The most successful investments with the highest satisfaction are manufacturing automation and descriptive analytics/data visualization. How do companies get the inspiration and courage to jump? I don’t know.

Manufacturing Procurement 217

Manufacturing Procurement Supply Chain Software Analytics Software Buyer Training 217

Supply Chain Shaman

OCTOBER 25, 2021

At the enterprise level, manufacturers and retailers focus on corporate efficiency. Figure 1: Current State of a Global Manufacturer of White Goods. We need a central directory of companies with authoritative identifiers for the company, the manufacturing and logistics locations, and products. All are out of balance. What to do?

Analytics Software 195

Analytics Software Analytics Supply Chain Design Software Supply Chain Planning Software 195

Supply Chain Shaman

APRIL 30, 2020

The global economy rebound from COVID-19 hinges on the discovery and manufacture of an effective vaccine. However, supply chain leaders well understand that drug discovery, manufacturing, and distribution are all necessary to deliver the vaccine to a willing arm. Rethink Manufacturing. The difference? Let’s face it.

Supply Chain Design Software 349

Supply Chain Design Software Supply Chain Planning Software Supply and Demand Supply Chain Software 349

Supply Chain Shaman

OCTOBER 25, 2021

At the enterprise level, manufacturers and retailers focus on corporate efficiency. Figure 1: Current State of a Global Manufacturer of White Goods. We need a central directory of companies with authoritative identifiers for the company, the manufacturing and logistics locations, and products. All are out of balance. What to do?

Analytics Software 195

Analytics Software Analytics Supply Chain Design Software Supply Chain Planning Software 195

Supply Chain Shaman

FEBRUARY 14, 2022

Notice how the water turns from blue to brown in Figure 3 with the lack of demand translation capabilities within the enterprise for manufacturing and logistics. Organizational alignment in manufacturing organizations is worse between operations and finance teams today than in 2013. I give you this evidence in this blog.). Mistake #5.

S&OP 195

S&OP Supply and Demand Procurement Analytics Manufacturing Procurement 195

Supply Chain Shaman

JULY 23, 2023

I worked with an allergen manufacturer that had a seasonal product with order latency of 182 days. I am trying to understand the benefits of networking synchronization in contract manufacturing. With high volume and predictable products, this cycle is days and weeks. I look forward to hearing your feedback.

Supply Chain Planning Software 317

Supply Chain Planning Software Supply Chain Planning Scenario Planning Modeling 317

Supply Chain Shaman

MAY 26, 2023

Demand latency (the time from purchase by the customer to order visibility by the manufacturer) is weeks and months. The testing of bi-directional orchestration using a graph is currently being tested at a couple of manufacturing locations. The So What And Who Cares? So what does this all matter? What is the business case? Stay tuned.

Optimal Sourcing 324

Optimal Sourcing Modeling Supply and Demand Manufacturing Procurement 324

Supply Chain Shaman

FEBRUARY 18, 2021

Advanced planning evolved with a focus on modeling manufacturing constraints. Here are some examples: Manufacturing: Lowest manufacturing cost, Operational Equipment Effectiveness (OEE), and Asset Utilization. The Emergence of Logistics as Constraint. Over time, this changed. How do they need to shift?

Supply Chain Planning Software 267

Supply Chain Planning Software Supply Chain Design Software Supply and Demand Procurement Analytics 267

Supply Chain Shaman

SEPTEMBER 27, 2021

Today, there are no authoritative identifiers to track and trace for containers, warehouse locations, trucks or manufacturing plants. Currently, 32% of process-based supply chain organizations report through a manufacturing organization, and there is a need to change functional thinking dramatically. These are authoritative identiers.

Supply Chain Planning Software 309

Supply Chain Planning Software Sourcing Strategies Manufacturing Procurement Supply Chain Design Software 309

Supply Chain Shaman

OCTOBER 31, 2022

As shown in Figure 1, less than 5% of manufacturing companies are innovators. Ironically, while only 3% of companies invest in improving manufacturing–digital twin, hands-free processes, control systems, robotics, and automation–these investments have the highest success rate. This is a hard jump for conservative companies.

Cost Reduction Strategies 217

Cost Reduction Strategies Supply Chain Planning Software Supply Chain Design Software Supply Chain Software 217

Supply Chain Shaman

JUNE 29, 2022

We have heard that there is a focus on near-shoring, reshoring, and local manufacturing. Building a fab (manufacturing site) takes two-to-four years and requires the availability of water and trained labor. Does this solve the problem? When I get this question, I swallow hard. It is such a simplistic view of the world.

Supply Chain Design Software 251

Supply Chain Design Software Supply Chain Planning Software Supply Chain Design Pricing Training 251

Supply Chain Shaman

MARCH 23, 2022

The dark cloud is the venture capital exploitation of manufacturers. It is the buying of software companies to profit from maintenance or service revenues paid by manufacturers and retailers to their established software partners. The risk of the cloud is seldom discussed, but it is omnipresent. How so, you might ask?

Supply Chain Planning Software 167

Supply Chain Planning Software Supply Chain Software Procurement Solutions Analytics Software 167

Supply Chain Shaman

JUNE 1, 2022

The organization with deep manufacturing “roots” automated factories and trucks but did not align make, source, and deliver together. The organization implemented procurement execution systems, but these also operate as an island disconnected to contract manufacturing and their value networks of suppliers. The reason?

Supply Chain Planning Software 195

Supply Chain Planning Software Supply Chain Planning Optimal Sourcing Scenario Planning 195

Supply Chain Shaman

DECEMBER 27, 2022

If so, how will the company transition from 2-D to 3-D documentation and drawings and redefine tolerances for additive manufacturing? Within a company, manufacturing plants compete for volume, and sales teams challenge order management for their share of inventory. Or to redefine service? Semantically structured knowledge?

Supply Chain Software 384

Supply Chain Software Supply Chain Planning Software Supply Chain Design Software Inventory Reduction 384

Supply Chain Shaman

OCTOBER 19, 2022

The gaps in expectations between planning and functional organizations like manufacturing, transportation, and procurement are large and growing. Shifts in manufacturing scheduling and cross-docking based on inbound logistics signals to improve the synchronization of tight supply. Efficient flow is only one type of design.).

Supply Chain Planning Software 195

Supply Chain Planning Software Supply Chain Design Software Sourcing Strategies Real-time Visibility 195

Supply Chain Shaman

MAY 1, 2023

The techniques to improve agility are improving data transparency/insights, use of attribute-based planning, design of push-pull decoupling points, pooling of inventory, and configure-to-order/make-to-order manufacturing. Many companies have 30-50% of their volume as seasonal items. Low Volume but Predictable Items.

Inventory Reduction 234

Inventory Reduction Cost Reduction Strategies Waste Reduction Resource Reduction 234

Supply Chain Shaman

NOVEMBER 10, 2014

When I finished the blog post last week, I sent the research to fifteen supply chain leaders in manufacturing and asked for their opinions on the study. These were large multi-national manufacturing companies with very senior supply chain leaders. So, what should a global manufacturer do? Their response surprised me.

Supply Chain Planning Software 308

Supply Chain Planning Software Supply Chain Design Software Analytics Software Demand Planning Software 308