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Supply Chain Performance Declined In the Last Decade. The Question is Why?

Supply Chain Shaman

Yes, companies held more inventory (measured in days of inventory) in 2019 than at the start of the 2007 recession. Commercial and operating teams in manufacturing organizations greater than 5B$ in annual revenue were more aligned in 2007, at the beginning of the recession, than in 2020, the start of the pandemic. Alignment Barriers.

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Is A Customer-Centric Strategy the Same as Demand-Driven? Outside-In?

Supply Chain Shaman

A Demand-Driven Value Network as defined by AMR Research in 2007: A network that senses demand with minimal latency to drive a near real-time response to shape and translate demand. It is about much, much more than Vendor Managed Inventory (VMI ) or Collaborative Forecasting and Replenishment. Economic Vision of Supply Chain 2030.

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Building Outside-In Processes

Supply Chain Shaman

2) Market-Driven Forecasting. Inside-out, traditional processes forecasting processes use statistical methods to predict the future based on order and shipment patterns. So, what are the market signals to model to forecast demand at the cadence of the market? How can you build market-driven forecasting processes?

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How Can We Heal the Global Supply Chain?

Supply Chain Shaman

If you trace the year-over-year pattern, you can see that P&G made progress on inventory turns and operating margin 2006-2007, 2009-2010. Collaborative sales forecasting input leads to increased bias and error. My advice for the global supply chain leader is not waste your time asking the sales team to forecast.

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Supply Chain Leaders, Chained to Tradition, Face the Whip

Supply Chain Shaman

As they bemoaned the fact that upstream trading partners share dismal forecasts. Why would they ever think the automotive industry would give them a good forecast? I then told them about working with a Fortune 500 Chemical Company in 2007. The focus of the conference is on Supply Chain 2030. The reason I laughed?

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Four Strategies To Deploy As Supply Chain Hits Main Street

Supply Chain Shaman

My forecast? When the recession of 2019-2020 happens, the whiplash will be higher than the 2007 recession. Most are clueless about driving a better-planned order flow from tactical planning to procurement or transportation planning or how to improve forecast-value-added (FVA) processes. Our supply chains are weaker at planning.