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3 Prerequisites to a Modern Demand-Driven Supply Chain

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In 2010, Gartner estimated that manufacturers outsourced about 70% of the products they make to other manufacturers. I haven’t seen a recent statistic, but that still feels about right. So, it only makes sense that, for most manufacturers, implementing modern demand-driven or pull-manufacturing techniques will require collaboration with many partners across the entire supply chain. Before you can collaborate with your supply chain partners, you need to get your own house in order.

3 Ways to Put Big Data to Work in Your Factory

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Is enthusiasm for Big Data wavering? In 2015, McKinsey Global Institute claimed that the IIoT had the potential to create as much as $3.7 trillion in economic value in the global manufacturing sector by 2025. They also predicted that 80 to 100% of manufacturers will have implemented IIoT applications by then and already be reaping the benefits of data-driven insights into their operations.

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Fast Results Using TOC for Demand-Driven Manufacturing – Part Two

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Manufacturers use constraints management first to gain the most demand-driven change. Last time, we talked about focusing on enterprise improvements rather than local efficiencies using constraints management (TOC). We discussed that continuous improvement tools such as TOC, Lean and Six Sigma work like “sandpaper” on an organization’s processes, smoothing various stages of their demand-driven journey.

The Pros and Cons of Consolidating Manufacturing ERP Systems

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Managing operations through multiple manufacturing systems can be challenging, but it’s a daily reality for many manufacturers. In this post, we’ll look at the pros and cons of consolidating ERP systems – and propose an alternative. When Two Worlds Collide. Whenever two or more organizations merge, they are almost always using different ERP systems. As anyone who’s ever tried to consolidate an ERP systems knows, it’s not easy. Each organization chose their respective ERP systems for a reason.

What Happens When Machine Learning Meets Ocean Shipping?

Read how Unilever developed a first-of-its-kind digital Control Tower with ClearMetal that provides extremely accurate real-time visibility across their sea freight operations.

Supply Chain Visibility and the Bottom-line

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Visibility Matte rs. Rick Morris, a Certified Supply Chain Professional wrote in Supply House Times that while improving fill rates, improved forecast accuracy also lowers inventory levels measured in days of sales; and simultaneously , improved forecast accuracy improves fill rates and lowers inventory. He suggested this translates into increased profitability.

The Magic Bullet for Real-Time Supply Chain Collaboration? Cloud Visibility.

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Jessica Twentyman reported in the Financial Times , that for many manufacturers, supply chain collaboration is stuck in the dark ages. When it comes to ordering materials and components, managing inventory levels, or organizing the delivery of finished goods to customers, companies are forced continually to chase business partners – mostly suppliers, logistics companies, and retailers – via a messy stream of emails, phone calls, and even faxes.

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It’s Time to Revisit Vendor Managed Inventory

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A few decades ago, Vendor Managed Inventory (VMI) was a hot topic. Many manufacturers saw it as a way to reduce inventory levels and costs. If they could get their suppliers to maintain ownership of raw materials or subcontracted components until consumed, inventory levels would naturally drop—on paper anyway. Because they were giving most, or all of their business to one supplier, they were also in a position to negotiate better terms.

What Sandpaper Will You Use? – Part One

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What to Use to Get the Most of Your Demand-Driven Changes. Demand-driven manufacturing leaders are always refining their tools and tactics to ensure they’re spending their time wisely. This blog marks the first in a three-part series about using the tools of TOC, Six Sigma and Lean to help manufacturing leaders gain the most benefit from their demand-driven transformation. Three in One.

Efficiency vs. Productivity: Metrics that Matter…Until They Don’t

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Measure efficiency and productivity against your REAL goal. I keep seeing the word efficiency in the manufacturing media. For s omeone who is a Constraints Management person, this is the equivalent of saying “Ni” to the Knights Who Say Ni (Monty Python reference, okay?) or like scratching your fingernails across a blackboard. It is one of those words that I think we should remove from the English language.

The Business Costs of Supply Chain Disruption

Supply chains have weathered a lot recently: a pandemic, natural disasters, trade wars and more. The Economist and GEP surveyed 400 senior execs to find out their real business impacts. The results? Shocking, but not surprising. Read the report now.

Supply Chain Visibility and Collaboration – How ERP Falls Short

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TR Cutler, Inc. Market Research (TMR) just released the results of a survey conducted in the first two weeks of February, 2017. The respondents were all discrete manufacturers and all held VP or C-level titles. The universe of completed surveys totaled 401 and inquired about the highest priorities for manufacturers today. The sample size ensures statistical significance to a probability of +/- 3%). Key Findings and Frustrations.

Weathering the Next Recession

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The global economic recession that started in 2007/2008 hit the manufacturing sector hard. In February of 2009, The Economist even published a piece called The Collapse of Manufacturing. If you recall, this was right about the time the automotive manufacturer bailouts kicked in because they, like the larger financial institutions, were deemed too important to the US economy to fail. It felt like we were on the verge of an economic collapse.

Three Ways Leaders Create Lean

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Three Ways Leaders Create Lean. Relentless” leadership and team empowerment drive lean change. For those of you who have heard this before, it bears repeating. For those of you who have not, this is important – leadership is the single most important component to lean success. .

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You are Here!

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. . Where to Start Your Lean Journey. There’s one sure-fire way to tell when someone has lived in Minneapolis long enough to be called a Minnesotan. No, it doesn’t involve rooting for the Vikings, though that helps. It’s when they can find their way around The Mall of America without a directory.

Demystifying Control Towers: What Drives Effectiveness?

Speaker: Mauro Gonzalez, Founder and CEO of Alkimius Group & Andrew MacMillen, Principal Analyst at Nucleus Research

There are several competing definitions of supply chain control towers. Here to demystify their meaning and what it takes to have a successful implementation is Principal Nucleus Research Analyst, Andrew MacMillen in conversation with Alkimius founder & CEO, Mauro Gonzalez.

It’s Time: Manufacturers Need to Cut Ties with MRP and Spreadsheets

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A few years ago, Aberdeen Group did a study that showed that 63% of “best in class” manufacturers still used spreadsheets for planning. With percentages this high, it’s probably safe to say that there is a lack of trust in planning tools like ERP and MRP even in the best-run companies. Of course, spreadsheets come with their own set of issues. You may have a certain amount of confidence in the spreadsheets you’ve created, but what about those from your colleagues?

IT/OT Convergence in the Factory of the Future

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Since the advent of the Industrial Internet of Things (IIoT), experts and enthusiasts have been talking about the coming together of IT (information technology) and OT (operational technologies). Some call it an integration, while others call it a convergence. I call it a good thing. In this post, I’ll talk a bit about the convergence/integration of IT and OT, why it matters, and what it will look like in the Factory of the Future. What is IT/OT Convergence?

Aligning Metrics to Strategy

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Measuring your strategic goals against their value and the time, money and attention they need. When we began our metrics discussion, we talked about how behaviors are too often dictated by metrics—and whether or not these behaviors actually “move the needle” for sustainable supply chain improvements. Mark Davidson’s blog about aligning metrics to larger goals and objectives covers this topic well. I’d like to go over what I find especially valuable about these tactics.

Five Key Elements that Drive Manufacturing Flow

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If you follow the Demand-Driven Matters blog, you know we specialize in Demand-Driven Manufacturing and have identified the two key components of this method as synchronization and flow. At an enterprise level, synchronization is all about fully connecting your organization to aggregate and share information in real-time.

Webinar On-Demand: 3 Ways to Make Your Operational Execution More Robust With S&OE

Speaker: Sander van Lokven and N.S. Krishnan

S&OE provides an early warning system that helps business stakeholders sense and optimize their responses. This keeps the supply chain out of firefighting mode, smoothens relationships with customers and suppliers, and helps sustain margins by reducing the cost to serve.

Modern Metrics

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How Technology Has Changed What We Measure. The two areas of my working world are embracing technology like never before: Marketing and manufacturing. While digital content and automated technologies gave birth to the modern marketer, a more real-time, digitally connected enterprise is driving modern manufacturing strategies like the Factory of the Future, Smart Manufacturing and Industry 4.0 – all of which are grounded in Demand-Driven Manufacturing methods. This got me thinking.

The Future of the Organization is On Your Shoulders

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Imagine this: You’re in a high-level planning meeting with senior leadership, when the CEO and CFO issue a clear mandate: Get inventory levels under control. The VP of Sales, never being one to hold back an opinion, steps in to argue that the organization needs to become more competitive if it’s to survive. Right now, your promised lead times are the longest in the industry – even longer considering how often your promised delivery dates are not met.

POV: 3 Ways Layered Technology Differs from the ERP Add-On

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Most manufacturers have, at one time or another, deployed an “ERP add-on.” These are the bits and pieces of functionality sold through third parties that round out the capabilities of an ERP system. Common ERP add-ons can include core functionality like Advanced Planning and Scheduling (APS) and Supply Chain Planning (SCP), but for major ERP systems, there are dozens if not hundreds of add-ons available.

Smooth the rough spots with TOC, then Lean – and fine-tune with Six Sigma

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What Grade of Sandpaper Will You Use? Part Four. Here we are at the final installment of our four-part, Sandpaper blog series about when to use the tools of Lean Manufacturing, the Theory of Constraints (TOC) and Six Sigma to address constraints, drive flow and promote continuous improvement.

Leading Advertising and Analytics Company Outperforms With a Graph Database

Xandr, a division of AT&T, has built an identity graph that connects information on people, households, and more. The company is using this graph to provide advertisers an ability to deliver commercials more successfully than ever before. Learn more.

Lean Manufacturing Driven by Rapid Return on eKanban Technology Investment

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Lean Manufacturing relies heavily on trusted relationships with suppliers and pre-negotiated terms of engagement. Through the use of supplier quality certifications and blanket (long-term) purchase orders, a manufacturer can accurately and effectively calculate the optimal level of inventory needed to fulfill demand requirements through the duration of replenishment lead time. Ensuring supplier performance. When a relationship is setup with a supplier, a service level agreement is defined.

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Doing more with less: Learning from Kanban

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The manual Kanban cards that were the precursor to Lean Manufacturing have evolved into eKanban systems that automate inventory replenishment and reduce material waste. READ MORE on our guest post on EBN, the premier online community for global supply chain professionals. The post Doing more with less: Learning from Kanban appeared first on Synchrono. eKanban Inventory Lean Manufacturing ekanban inventory kanban lean manufacturing replenishment

Creating Trust Throughout the Supply Chain Using Demand-Driven Methods

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How reducing forecasting errors and disruption risks create better supplier relationships. . Building trust in the supply chain is essential to driving flow; and when there are forecast errors, there is an inherent mistrust throughout the supply chain. Lack of collaboration is often the cornerstone of conflict, blame, and mistrust between a manufacturer and suppliers. These communication breakdowns lead to finger-pointing when forecast errors and disputes arise.

Demand-Driven Supply Chain Transformation

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End-to-end Visibility for Real-time Coordination, Communication, and Commitment. By applying demand-driven methods and synchronizing processes, manufacturers are reaching new levels of communication, profitability, and customer responsiveness. Demand-Dr iven Manufacturing incorporates the best of Lean manufacturing, Theory of Constraints (TOC), and Lean Six Sigma principles.

Perfect Delivery: The New Rules for Survival, Innovation, and Growth

As supply chain complexity increases, so do challenges to achieving the perfect order. ARC Advisory Group shares: hurdles faced in achieving the perfect order, opportunities to increase customer satisfaction and reduce costs, and how cloud SCM contributes to operational flexibility.

Demand Driven Manufacturing in the Engineer-to-Order Space

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Aligning Lean Manufacturing and Continuous Improvement Practices. Demand-driven manufacturing (DDM) is an approach to manufacturing where production is based on actual demand rather than forecasts. DDM enables a synchronized, closed loop between customer orders, production scheduling and manufacturing execution – all while simultaneously coordinating the flow of materials and resources across the supply chain.

Common Lean Manufacturing Software Project Constraints

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Leveraging Project “Constraints” and Maximizing Results. As a project manager for demand-driven, lean manufacturing software, I have more than a nodding acquaintance with the theory of constraints (TOC). What I find quite remarkable is the ability to apply the theory of constraints to other mediums beyond the manufacturing of goods – even something like project work.

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The Industrial Internet of Things (IIoT) and the Modern Marketer

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For your customers, it’s more than just connectivity. I was recently reading about the Industrial Internet of Things as it relates to my business—manufacturing software. It’s exciting that technologies are now available that will liberate manufacturers from the rigid systems and processes of the past. For today’s manufacturer, the IIoT boils down to the ability to capture and connect data from multiple sources to attain truly meaningful information.

Made for Manufacturers

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By Sarah Balogh. Made for Manufacturers. A common statement I hear from customers is that they are working with technology and software that doesn’t provide the functionality they need as manufacturers. They are told that certain enterprise software packages “can do everything” they need to plan, schedule, and run their factories. But months after implementation they feel a sense of disenchantment. Why is this? Software Made for Manufacturing.

New Buyer's Guide for Supply Chain Network Design

Many companies are looking to redesign their supply chain network to lower costs, improve service levels and reduce risks in the new year. Check out our updated Buyer's Guide for Supply Chain Network Design Software with research insights and learnings!