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For example, with a data gateway, a supply planner gains accelerated access to customer orders, inventory levels, and transportation schedules, all in one place, to increase the user experience of making the right choice to identify inefficiencies and make better, more informed decisions.
The consumergoods industry may have experienced tremendous growth, but figuring out what consumers want is an ever-evolving puzzle. From where they shop and how frequently they buy to what price points entice them, consumer behaviors have been challenging to predict over the past year.
This metric measures the percentage of time the planners accept replenishment, transportation, or inventory plans as they are without any change in the timing of the delivery or the quantity to be delivered. You set a target inventory level. Solvoyo has a metric they call the user acceptance rate. That’s an action.
If you want to know ahead of time the changes awaiting the pharmaceuticals supply chain it is useful to extrapolate experiences from the consumer and retail sectors, which were dealing with the same trends and pressures long before pharmaceuticals (for example, the proliferation of distribution channels).
The 25% tariffs on Canadian and Mexican imports and 20% tariffs on Chinese goods are expected to increase production costs, disrupt logistics networks, and force companies to rethink supply chains. Retailers and e-commerce giants like Amazon are stockpiling key inventory, preparing for potential further trade restrictions.
For example, with a data gateway, a supply planner gains accelerated access to customer orders, inventory levels, and transportation schedules, all in one place, to increase the user experience of making the right choice to identify inefficiencies and make better, more informed decisions.
Your Aftermarket Supply Chain is More Complex Than You Think: Stop Guessing, Start Optimizing Lets be honest: managing spare parts inventory requires specialized strategies unlike any other inventory management process. Suboptimal inventory distribution: excessive stock in low-demand locations and shortages in high-demand areas.
Your Aftermarket Supply Chain is More Complex Than You Think Lets be honest: managing spare parts inventory requires specialized strategies unlike any other inventory management process. Suboptimal inventory distribution: excessive stock in low-demand locations and shortages in high-demand areas. The outcome?
TTR-TTS Framework TTR (Time-to-Recover) represents the time needed to restore supply after a disruption, while TTS (Time-to-Survive) is the duration a company can continue operations before running out of inventory. Secure alternative suppliers and emergency inventory for high-risk categories.
One tactic major retailers have used to help increase their margins is to offer their own private label branded products as lower-cost alternatives to the consumergoods brands. Consumergoods manufacturers have struggled to combat these private label incursions, with varying degrees of success.
Walmart is not the only big retailer with OTIF requirements, but as the world’s largest retailer, and a company with stringent requirements , Walmart’s OTIF requirements are top of mind for consumergoods companies. These solutions allow companies to prove that their goods arrived on-time.
There is growing recognition within pharma that inventory management should be a top priority. Industry insiders are beginning to put increasing focus on improving their inventory management practices, which lag far behind those of other industries. There are usually 4–24 weeks of finished good stocks. Pharmaceutical'
Taking a Closer Look: A Use Case for GenAI in S&OP To visualize how GenAI works in a real-world S&OP setting, consider a global consumergoods company grappling with fluctuating demand and supply chain disruption. The need for repetitive meetings and manual data reconciliation decreases.
And how can consumergoods companies learn from their performance in this pandemic to prepare for the future? A study by E2open – the 2021 Forecasting and Inventory Benchmark Study: Supply Chain Performance During the Covid-19 Pandemic – provides the answers. It was a time of need, and demand for essential goods was high.
Essentially, the team is removing the partitions between network design, sales and operations planning (S&OP), inventory optimization, fulfillment and transportation planning. As a result, the solution is solving inventory, transportation, and fulfillment in one model across strategic, tactical, operational, and executional horizons.
We at Blue Yonder have the privilege of serving hundreds of consumergoods companies globally. Consumergoods companies are: Reviewing working capital investments and their CFO’s are speaking to us about our industry-leading multi-echelon inventory optimization.
The digital consumer often wants to shop online, pick up at the store, and conveniently manage returns. Each year I go to the ConsumerGoods and Technology (CGT) conference where speaker-after-speaker talks about retail/supplier collaboration. Current State of Perpetual Inventory. Get Good at Data Sharing.
Strategic moves like bulk buying, closer supplier partnerships, and syncing procurement with supply chain planning can tighten inventory, cut waste, and free up cash. A consumergoods company aligned its procurement and logistics teams, resulting in a 15% reduction in working capital. What Is Agile Procurement?
We were discussing the results of the planning benchmarking work that we have just finished, and I was sharing some insights on inventory management when one of the panelists emphatically stated, “Inventory is a waste to manage. We feel so strongly about this that we do not have an inventory planning role.”
The impact of complexity on inventory is not quick. To help, today I want to share some of the insights from our recent Inventory Optimization study. Inventory management is a hot issue. Companies invest in project after project, yet inventory levels remain the same. What Drives Inventory Effectiveness?
In this scenario, by adopting an adaptive supply chain, the retailer uses real-time data analytics to identify emerging trends and collaborate closely with suppliers to quickly adjust production and inventory levels to meet customer demand. This collaboration enables faster response times and cost savings.
They may need to further optimize inventory across the supply chain. For example, multi-echelon inventory optimization to enhance responsive and cost and cash-to-serve across supply chain nodes. The consumergood companies are looking at how to carry out digital transformation in a way to minimize risk and learning curve.
Meanwhile, supply shortages and price inflation are getting the front page in consumer-focused publications and plenty of airtime on televised news. Many consumers, including myself, become irritated by the sight of empty store shelves where our favorite consumergoods are typically stored. And rightfully so.
The key challenge is to not over-produce and stock up on excessive inventory , but at the same time be ready for summer by securing on-shelf availability and fulfillment. The impact on inventory and demand will depend on the extent and timing of the pandemic ending. Often, consumergoods are produced in wide varieties.
The company claims that for one global consumergoods company the solution was making 12,000 recommendations in a month; 74% of those recommendations were auto accepted. If it is the same consumergoods company that I think it is, I saw their vice president of supply chain speak at a planning conference.
During the early phases of the COVID-19 pandemic, sectors such as automotive, electronics, and consumergoods experienced severe disruptions due to factory shutdowns and shipping constraints, primarily because of dependence on suppliers concentrated in Asia.
Kimberly-Clark is public consumergoods company that generated over $19 billion in revenues last year. This consumergoods behemoth has driven ongoing supply chain productivity through their FORCE (Focused On Reducing Costs Everywhere) program. Not surprisingly, many of FourKites’ users work in transportation operations.
Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies. This included monthly reviews between business units and central operations teams and adaptive inventory segmentation policies. In fact, the teams ignore the forecast. Does it work?
This requires using new forms of analytics for inventory optimization and network design and doing less on spreadsheets. Nine out of ten companies are stuck in their ability to make progress on operating margin and inventory turns. Track the impact of rising complexity on forecastability and the impact on the inventory plan.
As demand forecasting accuracy increases, and the standard deviation associated with the forecast decreases, the need to hold “just in case” inventory also goes down. This leads to lower inventory carrying costs and thus better case flow. Demand forecasting should be tightly integrated to an inventory optimization application.
Clarkston Consulting is focused on the ConsumerGoods and Life Sciences industries. They have developed a proprietary inventory analysis tool that can not only help companies achieve service level goals with less inventory, but the inventory analysis can also flow into helping design an efficient warehouse layout.
The award, based on beating the industry peer group on rate of improvement on the key metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) while outperforming their peer group, is tough to achieve. Orbit Chart for L’Oréal at the Intersection of Inventory Turns and Operating Margin. Growing Pains.
ConsumerGoods Index – May 2023 Edition Deltas in sales over time and inventory totals are critical leading indicators for the health of the consumergoods industry. Retailers and consumers alike are impacted by deviations and volatility in the consumergoods supply chain. since April 2021.
Inventory Management in a High Inflation Environment ; Clint Reiser. Instead, they are likely to carry higher levels of inventory as a lower cost alternative to minimizing disruptions. Beware the Swinging Pendulum on Supply Chain Inventory Practices ; Polly-Mitchell Guthrie ( Kinaxis ). Will it take decades? Clint Reiser.
The pandemic drove up prices on many consumergoods as people shifted spending to e-commerce and bought at holiday levels in early spring. The system wasn’t prepared for the surge, driving up pricing for transportation and sapping inventory levels. Price fluctuations and sourcing issues.
Unilever (NYSE: UL) is one of the world’s largest consumergoods companies. It was believed a SCP transformation would reduce inventory, improve service and free up cash flow. Almost one day of inventory has been cut from days of inventory outstanding.
This week, I attended the ConsumerGoods Forum in Chicago. On the top of mind for many retail and consumergoods executives is the looming forced upgrade by SAP named RISE. The ConsumerGoods Forum follows on the heels of Sapphire. The networking was great. Here I share observations and take aways.
From fulfillment analysts and omni-channel commerce managers to customer success managers, diverse functions are tasked with ensuring that inventory is properly rebalanced following a disruption. Let’s explore this challenge through the lens of a consumergoods manufacturer. The result?
Prior to a recent ToolsGroup user conference, we carried out an initial survey of our clients, completing it with the known data of our installed base and analyzing the results in three industries: consumergoods (27% of customers surveyed), retail (29%) and industrial (44%). Same as ConsumerGoods, plus difficult to predict demand.
Growth agendas with the spiraling demand require cash, supplier shortages necessitate the shortening of payables, and the longer/more variable transport lead times decrease inventory turns increasing the need for cash. Comparison of Industry Players Within ConsumerGoods for the Period of 2012-2021. The answer?
IL’s educational mission is to guide businesses to efficiently manage logistics, reduce and speed inventory, and neutralize transportation cost increases by aligning supply to demand and adjusting enterprise functions to support that paradigm shift. Read the press release here.
He is working with Microsoft, Accenture, and other partners to deliver a multi-tenant supply chain model that leverages data, the cloud, and shared pay-for-use robotics facilities, to allow consumergoods to reach customers next or same-day at the cost of standard delivery. The system is extremely dense and is completely scalable.
Square1 primarily serves clients in the Beauty, Packaged Food, Apparel, and ConsumerGoods industries, and currently works with 40 domestic and international clients. Square1 Logistics serves clients across various industries, including food and beverage, consumergoods, and automotive.
Vendor managed inventory (VMI) – when executed well – can be an efficient and cost-effective system for managing the supply of goods. Learn more: What is Inventory Management? Techniques for 2021 What is vendor managed inventory? How does vendor managed inventory work?
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