Supply Chain 2030: Forge a New Path

Supply Chain Shaman

Our goal is to build a guiding coalition to think differently to improve outcomes. Today only 12% of supply chain teams are driving improvement, performing better than their competitors and driving value (as determined by Price to Tangible Book Value).

Gaining Clarity on Inventory Effectiveness

Supply Chain Shaman

I was moving from a position where I led a manufacturing operation to being a part of a team to design supply chain software to improve planning decisions. The names of the technology providers, the process definitions, and the architecture descriptions were a new lexicon.

Uncork Manufacturing Bottlenecks for Optimized Production

USC Consulting Group

Traffic would be an apt metaphor, as bottlenecks on the road and those in a manufacturing plant are both concerned with throughput and achieving continuous flow. However, in manufacturing, bottlenecks have their own clear-cut definition as well.

Modern Metrics

synchrono

In the same way that marketing is leaning more on technology for decision-making data – and what to take action on to improve performance – more manufacturers are investing in technology to better serve their clients, elevate their competitive position and increase revenue.

Vendor Managed Inventory Model for Supply Chain Cost Reductions

Cerasis

Below I will outline how a vendor managed inventory model, in conjunction with reverse marketing, value analysis, and collaboration will achieve supply chain cost reductions. Vendor Managed Inventory Model for Supply Chain Cost Reductions. The distributor maintains the inventory plan.

Understanding Lean and the 8 Wastes

The Logistics of Logistics

There are a lot of different definitions for lean, but my favorite is below. Producing earlier or more than is needed generates other wastes, such as overstaffing, storage, and transportation costs because of excess inventory. Inventory can be physical inventory or a queue of information. Excess Inventory. Also, extra inventory hides problems such as production imbalances, late deliveries from suppliers, defects, equipment downtime, and long setup times.

Lean 162

Supply Chain Scope: New Study Shows Rise in US Inventories; California Estimated to Improve Freight Efficiency by 25% in 2030

Arkieva

A new study by the SupplyChainDigest analyzing the main components of working capital: Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payables Outstanding (DPO) revealed an uptick in DIO. Targets for 2030 Include: Improve freight system efficiency 25 percent by 2030.

Integrated Planning: Is It Rubbish? Be Careful What You Ask For….

Supply Chain Shaman

Let’s start with a definition. I find five common definitions: Tight Integration of Transactional and Planning Data. Companies with a deep focus on Sales and Operations Planning (S&OP) will often default to this definition. Get Clear on the Definition.

The Digital Supply Chain: Making The Leap With A Ball and Chain

Supply Chain Shaman

Let’s start with a definition. By definition, it is not outside-in. There is continuous pressure on costs. The issue is that costs need to be continually balanced with customer service, and inventory programs against a business strategy.

Where Would We Be Without All of the BullS&%T?

Supply Chain Shaman

Progress on the key performance metrics of cost, customer service, inventory, and Return on Invested Capital (ROIC) are going backward; not forwards, for most companies. It is a concept that sounds good, but due to lack of definition never goes anywhere.). “No,” I continued.

Where Would We Be Without All of the BullS&%T?

Supply Chain Shaman

Progress on the key performance metrics of cost, customer service, inventory, and Return on Invested Capital (ROIC) are going backward; not forwards, for most companies. It is a concept that sounds good, but due to lack of definition never goes anywhere.). “No,” I continued.

For Every Tom, Dick, and Harry

Supply Chain Shaman

I asked him to translate the improvement in FVA into value by calculating the safety stock required using the naive forecast and the levels using the forecast from the team. Each leader had a very different definition of S&OP. They continually push to find a better way.

What Is The Mission?

Supply Chain Shaman

Overall results in business performance on the critical supply chain metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC) are declining. Let’s start with a discussion on inventory. In Table 1, we share the comparison of inventory levels by the industry peer groups pre and post-recession. Despite the investment in technology and whiz-bang approaches, inventory levels today are significantly higher than the pre-recession period.

Talent Trap

Supply Chain Shaman

The definition of a trap is something designed to catch a person or animal, either figuratively or literally. Their supply chains are not improving corporate performance. Without clarity in definition, the supply chain teams cannot drive action.

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

Supply Chain Shaman

Starting With Definitions. To help, I wrote a few definitions on the board: Demand-Driven Processes. The definition: an adaptive network focused on a well-defined value-based outcomes. Definition of Outside-In Processes. This requires modeling and continued refinement.

What Value Are You Getting From Planning?

Supply Chain Shaman

A decade later, as companies added planners expecting dramatic improvements, the market entered the trough of disillusionment. The industry does not have a definition. Yet, companies continued to invest primarily in ERP systems. . Inventory levels?

The Fight of the Titans

Supply Chain Shaman

Yet, the Titans, the first generation of supply chain super powers, continue to battle competitors. Most companies, along with consultants, feel that they know the definition of supply chain excellence. The metrics shown in Figure 1 are difficult to improve together.

Demand-Driven Transformation at Shell

Supply Chain Shaman

At the Supply Chain insights Global Summit , Nick shared his story on driving demand-based improvements. Nick strongly believes that it is insufficient to drive supply chain improvement through incrementalism. Impact of Demand Sensing on Inventory Levels.

6 Supply Chain Disciplines to Enable Profitable Growth

Talking Logistics

Supply chain management spans many functions and processes, including demand planning, sourcing, merchandising, supplier relationship management, inventory management, inbound and outbound transportation, distribution management, and store operations.

Time for a Mea Culpa?

Supply Chain Shaman

For now, I have taped a picture on my desk of the vacation that I want to take in May when the book is finished, and I continue to be head-down … typing away. For most companies today there is great room for improvement in the supply chain. It is a slow week.

Time for Value Chain 4.0?

Supply Chain Shaman

By definition, the networks and process definitions in the German vision is currently limited to a single factory, but there is a recognition of the need by the committees to interconnect multiple factories across geographical regions.

Reshoring Or Not, What is Manufacturing? 4 Questions to Ponder with Real American Manufacturers

Cerasis

And further, what we must continue to focus on are the fundamentals and the basic understandings of what is manufacturing and how we can create excellence in operations in order to create a prosperous economy here in America. Inventory was not accurate and either were the BOMs, so GIGO.

Learning to Speak the Language of Demand

Supply Chain Shaman

Slowly the words take definition in everyday speech. Companies are stuck at the intersection of inventory turns and operating margin. They are unable to drive improvements in both. > Unfortunately, companies have invested money in traditional forecasting processes believing that if they make the forecast better that corporate performance will improve. Improving forecasting is not sufficient. New shoes feel awkward. Blisters appear. Feet hurt.

What Remains the Same?

Supply Chain Shaman

” He continued, “Great mass marketing used be our differentiator, but now the barriers to entry have changed. I find most of them focus on improving the status quo and selling large system projects. Their focus is on continuous improvement of current processes.

What’s New with MMOG/LE Version 5?

QAD

The assessment also establishes a common definition of supply chain management processes to help organizations: Determine the robustness of existing internal processes. Facilitate continuous improvement. A deeper alignment between strategies, objectives and continual improvement.

[INFOGRAPHIC] Industry 4.0: Powered by the Internet of Things & Digital Manufacturing

Cerasis

Industrialize: Leading companies are already integrating these technologies to improve and evolve pillars of their value chain.

Embedded 3PL Relationship: What is it & Why is it Vital to Ultimate Shipper Success?

Cerasis

The definition of "embedded" by itself is as follows, according to Dictionary.com : verb (used with object) , embedded, embedding: 1. While traditional outsourced logistics relationships involve the 3PL looking across its own operations and asking “How can I improve?” This is something that many 3PLs and their customers hav been building for a while, but with some continuing economic pressures it has really come to a head.

3PL 173

How Can We Heal the Global Supply Chain?

Supply Chain Shaman

As we have driven improvements in globalization, jobs shifted as companies chased lower costs of labor. The winners drive improvement while posting financial results in the Supply Chain Metrics That Matter ahead of the peer group. Inventory Turns. Today, I unpacked my bags.

Global 290

Why a network model makes sense for today’s automotive suppliers

The Network Effect

Today, in order to accomplish these goals, continuous improvement in global supply chain execution has become a core supply capability required by most automotive OEM’s. Repeatable processes that minimize human intervention including continuous process measurement and reporting.

Groundhog Day

Supply Chain Shaman

In contrast, J&J that made the Gartner Top 25 list although they under performing on growth in both the pharmaceutical and medical device divisions, and they are not driving supply chain improvement (as measured by the Supply Chain Index ) faster than the peer group.

Changing Mental Models

Supply Chain Shaman

By and large, they struggle to gain cross-functional alignment on process redesign to improve outcomes. They lack the understanding of continuous improvement programs and struggle with alignment. This cannot be about process mapping and improvement of the current state.

Supplier Quality Management: What it is, 5 Key Metrics to Know & a 4 Step Supplier Evaluation Process

Cerasis

We have talked a great deal about the evaulation of suppliers on our blog and this post continues that great tradition. The US quality guru Joseph Moses Juran (born 1904 in Romania ) divides the supplier quality assurance process into nine steps: definition of the product’s quality requirements, evaluation of alternative suppliers. The definition of this metric is similar to the way it sounds.

Lean Transportation: Are you Using Lean Thinking for Transportation Management? If not, Why?

Cerasis

The need to transport parts also drives inventory up, creates a need for space to store those parts, and uses energy for more forklift time and warehouse heating. Rather, going beyond customer expectations needs to be fully understood, and transportation strategies then developed to meet those expectations with optimal inventory levels. Transportation strategy and tactics must support Lean inventory strategies. Act and/or DMAIC: Define, Measure, Analyze, Improve and Control.

Lean 175

Whew! It Is Finally Happening.

Supply Chain Shaman

However, what I observe is continued investment in the automation of enterprise practices. We are busy working on process iterations and continuous improvement programs that I think only inch us towards business transformation. Vendor Managed Inventory. I am an old gal.

Building Outside-In Processes

Supply Chain Shaman

In this post my goal is to help companies build outside-in processes through a clearer definition. It pains me to see nine out of ten companies are stuck at the critical intersection of cost and inventory turns. This outside-in orientation needs a definition to make it actionable.