5 pieces to the global capacity management puzzle

Kinaxis

by Bill DuBois Recently I was watching a video interview with David Thomas, the Director of Global Capacity Planning for Ford Motor Company. Among other things, he’s been leading the charge at Ford to deliver a global capacity management solution.

Design, Operating and Situational Inventory Trade-Offs

ToolsGroup

Gartner analyst Paul Lord has developed a framework to better understand inventory trade-offs by categorizing those decisions according to the objectives they are meant to achieve: structural, operational and situational. or “How can we reduce inventory and improve our balance sheet?”.

Strategic sourcing enters a new age. Are you keeping up? (Part 2)

ivalua

In last week’s blog , I began discussing telltale signs that you have entered the new age of strategic sourcing. Improving costs remains a core competency for any sourcing organization. Inventory. The post Strategic sourcing enters a new age.

3 Inventory Control Techniques to Improve and Maintain Inventory Accuracy

Unleashed

Inventory accuracy is vital to an organisation’s long-term success. Profits depend on the sale of inventory stock and if you don’t know what or how much you are selling then you could be missing an opportunity to maximise sales. Having poor and inaccurate inventory control can be costly because it causes issues such as unplanned stock-outs, the shipping of wrong products to customers, wasted resources trying to locate misplaced items and inventory shrinkage.

What’s New in Inventory Optimization?

ToolsGroup

Principal Analyst James Cooke of Nucleus Research just published his 2016 Inventory Optimization Value Matrix which highlights this year’s key trends, including functionality and usability. He reiterates why his firm sees inventory optimization (IO) solutions as so important.

Don’t Take a Holiday from Inventory Management

Talking Logistics

The Importance of Inventory Management. When it comes to inventory management, new trends are demonstrating that less is more. Having less inventory on-hand increases liquidation, allowing for a more agile response to shifting consumer trends. Companies that have too much inventory on-hand right now are struggling to clear out space ahead of the season, slashing prices and concerning stakeholders as profit margins creep downward.

The Beginner's Guide to Inventory Control and Management

Supply Chain Opz

What is Inventory Control? Here we will try to answer most common questions about Inventory Control and also provide additional resources you can use. What is Inventory Control? Inventory control often starts with how to know the demand of particular product.

4 Ways Big Data is Changing Inventory Management

EazyStock

In most enterprise scenarios, the volume of data is too big, moves too fast and exceeds processing capacity of existing applications. Variety – The different forms of data sources. 4 Ways Big Data is Changing Inventory Management.

Becoming demand-driven on command

Supply Chain Movement

Use multiple sources of demand data in the forecast, and build a demand signal repository to harmonize and synchronize demand data from multiple sources. Use new forms of inventory technology to design inventory buffers. It was the end of a long day.

Challenges of global fast fashion supply chains (Part III)

Supply Chain Movement

Sourcing and manufacturing lead times. We have already discussed in this global fashion retail series about network design and inventory location in Chapter 1 and stores replenishment in Chapter 2. The first is the question of sourcing location.

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Renegade Riposte

Supply Chain Shaman

After, I explained this, I granted Peter permission for the council to use the Index (the use of the Supply Chain Insights content follows the principles of open source), I then said to Peter, “I am glad that you called. What CEO does not like the concept of reducing inventory?

Optimizing Retail Supply Chains to Meet Demand and Reduce Costs

Transportfolio

By bringing in an external perspective to study your retail supply chain, you can benefit from years of industry expertise to help optimize your capacity when consumer demand changes.

What Can A Newborn Teach You About Supply Chain?

The Supply Chainer Report

Maintaining a Safety Stock is crucial to cover the risks of Supply and Demand, and not as a level of inventory to be kept. Personal Supply Chain Baby Capacity Gemba Infant's milk JIT Lead time Lean Nappies Newborn Quality Supplier

Your supply chain is costing you money – Reason #7 Making decisions based on bad data (supply chain data accuracy)

Kinaxis

Reason #6 Not effectively managing inventory. Having wasted time going to that store, I’d be less inclined to use that store in the future – at least I’d be much less likely to trust their website’s inventory. If the planned lead-time is longer than actual, you get excess inventories.

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Elephant in the Room: Thoughts on Metrics That Matter in Semiconductor and Hard Disk Drives

Kinaxis

With China already a source for semiconductor raw materials and the China/India end consumer market growing, there will be pressure to supply chips and hard drives to local China/India OEM’s first. Understanding inventory planning will take on a new dynamic. by CJ Wehlage.

Your supply chain is costing you money – Reason #5 Not having a supply chain risk management process

Kinaxis

If your demand decreases, you have excess inventory or idle capacity. Mitigating Risk – inventory tracking and dual sourcing are considered to be the most effective risk mitigation strategies.

It’s About Time for a new “World Class Supply Chain” Paradigm

NC State SCRC

Over time, the terms “strategic sourcing” and “logistics integration” were coined, which largely involved combining volumes of requirements from across the business, grouping them into large bids, and driving down costs due to larger quantity discounts achieved. In logistics, the focus became on centralization of distribution centers and warehouses to drive optimization in transportation routing, reduce inventory carrying and handling costs across the system.

Balancing Cash, Cost and Service: The Supply Chain Triangle

Arkieva

Over the last 5 years I have seen many companies launching inventory reduction programs. When launching an inventory reduction program, companies should be aware that inventory, as a part of Cash, should always be balanced with Cost and Service. Inventory Turns as a shared KPI.

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Biogen Idec designs the innovation supply chain

Supply Chain View from the Field

It takes six years to build a biotech production facility, and a billion dollars, so increasing capacity in the face of uncertain demand is a huge issue for us.” So our take was to create a supply chain that met four constraints: high quality, a well-managed integrated CMO(Contract Manufacturing Organization) base, economics/tax benefits, and risk reduction/capacity. This was considered heresy – sharing capacity is sacrosanct.

De-segregating the supply chain: Lessons learned in the air

Kinaxis

By tapping on flight statuses between my source and destination locations, I looked for other flight paths with different connecting cities to see if I had any alternatives. I was even able to view seat capacity to see if it was even feasible for me to get on those flights.

Linking the Supply Chain Triangle to Strategy

Arkieva

We have looked at the EBIT per inventory $ or per working capital $ to define a best-practice frontier. That frontier can then be used for setting balanced targets on EBIT% versus Inventory Turns or EBIT% versus CCC. A Product leader has the highest inventory risk.

My Vision for Supply Chain 2020? Deep Integration!

Arkieva

If I look at retailers it is still common to have private label suppliers stuffed with inventory, central or regional DC’s stuffed with inventory and shops stuffed with inventories. I was lucky to pursue a Phd in multi-echelon inventory optimization.

4 Challenges in Starting and Sustaining a SIOP Business Process

Supply Chain Game Changer

A Sales, Inventory and Operations Planning (SIOP) business process is an essential element for running a successful business. SIOP will allow you to improve your forecasting, capacity and resource planning, cash flow, and inventory levels. Yet Operations must put staffing and capacity in place, and Operations incurs the costs of doing so. The Procurement/Supply Chain team needs to order the materials and manage inventory levels. Subscribe Here! Email Address.

The Origins of Category Management

Supply Chain View from the Field

I was involved in inventory control area on what they used to call “residual parts”, which were leftover parts that you ended up trying to sell into the service parts organization. They would bid and source only part at a time!

Florence Et Al.

Supply Chain Shaman

To prepare, stratify your suppliers into strategic, single source and high volume flows. Attempt to find alternate sources from geographical areas that are not projected in the path of Florence. Capacity will be an issue. Expect tight capacity across North America.

21 Vendor Metrics Your Supplier Scorecard Might be Missing

Supply Chain Cowboy

Capacity. When demand is high, does your supplier have the capacity to fill your orders? Letting vendors know where they stand in their ability to fulfill your peak ordering could encourage them to make more investment and increase capacity. Inventory Levels. Letting your suppliers know how much of their product you have sitting in your warehouse can help them know when to suggest further orders or delay orders to keep you inventory at target levels.

Manufacturers Must Seek Better Supply Chain Visibility

ivalua

For manufacturers, key functions such as sourcing and supplier management have become more challenging as the result of increasing supply chain complexity. Visibility into supplier capacity. Predict capacity levels for each supplier and determine potential bottlenecks and other risks.

The Pressure is Rising for CPG Companies to Improve Order Delivery Performance

Aera Technology

Large CPG companies operate hundreds of sourcing, production and distribution systems around the world, run both internally and by partners. inventory-management walmart artificial-intelligence cpg supply-chain

Understanding Today’s Supply Chain Complexity: There’s No Substitute for Hard Work!

Arkieva

Supply Chain Complexity 1 – Plan/Source/Make/Deliver/…. Our definition of Sales Inventory and Operations Planning (SiOP) at Solventure contains the following steps: Customer-product segmentation. They create excess inventory which is consuming cash and sometimes scarce capacity.

LTL to Intermodal Shipping: How to Find and Eliminate Freight Spend Black Swans

Cerasis

Freight Black Swans Are Increasing Due to Several Factors Managing freight black swans are not about merely ensuring continued access to carriers; it’s about ensuring you have the capacity needed at the best price.

Five Capabilities to Take the Food and Beverage Supply Chain to the Next Level

Logility

The only way to accomplish this is through solving for the optimal supply plan while simultaneously considering all constraints, costs and capacities across the extended supply chain. 2) Multi-Echelon Inventory Optimization (MEIO).

Solving the Supply Chain Planning Puzzle

Logility

However, multi-plant sourcing and scheduling increases complexity and the need for enabling technology to develop an integrated plan for both aggregated levels of production and site level production to meet customer orders.

Gartner Questions Supply Chain “Control Towers”

ToolsGroup

Capabilities such as identifying near-term exceptions that need attention (like capacity shortage, inventory shortage, late shipments) don’t really belong in control towers, they say, but instead are foundational to modern supply chain management (SCM) solutions.

Demand-Driven Transformation at Shell

Supply Chain Shaman

They saw a steady drop in inventory and reduced working capital by about 50% over the period of 2011-2015. Impact of Demand Sensing on Inventory Levels. Over this period of 2013-2014 Shell made good progress on inventory, but faced unprecedented supply price volatility.

What’s shaping the steel industry today?

Quintiq

This concept will allow farmers anywhere in the world to process and preserve their produce on site, helping to reduce food loss dramatically at source whilst generating additional revenues for farmers. Henri: Managing a customer’s inventory raises the bar for operations of a steel producer.

What is Manufacturing ERP?

OptiProERP

Trading organizations, those that just buy and sell, need Sales Orders, Purchase Orders, Inventory, and Supply Chain Management. Enhanced Inventory Management. Capacity Requirements Planning (CRP). This is their capacity, i.e. throughput over time.

Customer-Product Segmentation Projects in B2B Environments

Arkieva

The situation is the most critical in case of constrained capacity as less profitable products and customers can run away with the scarce resources. The toolset should allow compilation of different data sources and be flexible in running different scenarios.