Remove 2007 Remove Conference Remove Eliminating Excel in Purchasing Remove Forecasting
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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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Lifting The Gray Curtain

Supply Chain Shaman

One of the goals of the conference was to challenge the audience to redefine work. 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. Lockdowns and Disbelief.

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How We Stubbed Our Toe in The Evolution of S&OP

Supply Chain Shaman

When my flight canceled, I was en route to the annual AMR conference in Phoenix. Tight coupling of the supply chain forecast to the financial forecast will improve value. Demand latency is two-eight weeks delayed from consumption purchase to translate to an order. If you want to know future sales ask sales. Measure it.

S&OP 195
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2020 Requires Big Wings and Feet

Supply Chain Shaman

The focus is on the role of supply chain finance in driving supply chain excellence. Next year’s conference will be on September 8th-11th in Franklin, TN, south of Nashville, TN. The design of the conference includes tours of several modern warehouses and centers of excellence. Bias and error.

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Will the Downturn Signal an Upturn?

Supply Chain Shaman

As the markets plummet, it is time to remind ourselves that demand is not a forecast. Traditional forecasting approaches are not adequate in a time of market volatility. In the real world, companies operate with a Mean Absolute Forecast Error of 24-60%, and have a bias of 9-40%. I remember December 2007 like yesterday.

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

Supply Chain Shaman

As we discussed this drawing the dialogue flowed in the conference room. 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. .” I drew the picture shown in Figure 1. Market-Driven Processes.

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Building Outside-In Processes

Supply Chain Shaman

While traditional supply chain processes evolved from functional excellence definitions for source, make and deliver from the inside-out; to make the digital pivot and become more market-driven, companies need to define new supply chain processes outside-in. 2) Market-Driven Forecasting. Bio-engineering? Customization?