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

Supply Chain Shaman

Nine times out of ten, the finance group is portrayed as a dam, a barrier or a ferris wheel in the drawings. Tight coupling of the supply chain forecast to the financial forecast will improve value. Companies tightly coupling the budget to S&OP have significantly higher inventories and lower growth than their peer group.

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What is Supply Chain Visibility and Why Isn’t It Enough?

Logistics Viewpoints

Because we call it a supply chain for a reason – each link is connected, so if you rattle one link, you rattle the entire chain, as Boeing famously discovered in 2007 when a bolts and screws shortage delayed their Dreamliner. But the opposite is not true – if you optimize one link, you have not optimized the entire supply chain.

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2020 Requires Big Wings and Feet

Supply Chain Shaman

The discussions are with groups of executives—often ex-management consultants. The budget is not sufficient and is often a detrimental input for supply chain forecasting. Why Is the Financial Forecast Not a Good Proxy for a Supply Chain Forecast? The supply chain forecast is a rolling forecast.

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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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Supply Chain Leadership Driving Industry 4.0 & Resilience During Crisis – LogiSYM July 2020

The Logistics & Supply Chain Management Society

Time to products restocking, automating repeat purchases could be made simpler by enabling a customer inventory demand to forecast while big data analytics enable real-time focus and simultaneous analysis of diverse data streams generating valuable information for forecasting and planning. Customer Centricity. Surviving and Thriving.

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

Supply Chain Shaman

Most of the concepts were new to the team; and while the group had discussed many of the ideas at a high level, they had not been able to take the conceptual ideas into implementation. I asked the group to think of demand-driven concepts as the enabler of customer-centric strategies. As a result, there were arguments. Demand Sensing.