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Should You Outsource Demand Planning?

ToolsGroup

Outsourcing non-core business processes has been a time-tested way to cut costs while improving performance. But now they have started outsourcing supply chain business processes like demand planning, allowing them to focus on other business processes while gaining access to world class capabilities.

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Supply Chain Department – A Typical Structure

SCMDOJO

This data can be used to identify areas for improvement and make informed decisions about sourcing, production, and distribution. These functions include procurement, production planning, inventory management, logistics, and customer service. Provide leadership and direction to ensure the smooth operation of the supply chain.

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Autoliv’s Supply Chain Risk Management Journey

Logistics Viewpoints

Risk management solutions scrape data from hundreds of thousands of online & social-media sites, but Autoliv also has access to sources of information that they pay for. They wanted these diverse sources of information pulled together in one central, user-friendly location they call their “garage.” And we are making progress.

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Observations on Artificial Intelligence in the Supply Chain Market

Logility

Techniques aside, what sets Machine Learning apart is the learning and improvement that occurs over time, so that better outputs and results are achieved. Machine Learning has been used to improve demand forecasting since the early 2000s. Getting data from numerous internal and external sources is a major challenge.

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One Multinational’s Supply Chain Transformation Journey

Logistics Viewpoints

They source from approximately 15,000 suppliers with a sourcing spend of over €7 billion. The company also needs to drive cash efficiency and improved productivity. Being able to look at a service failure and get down to root causes is necessary for continuous improvement. But even multi-sourcing is not enough.

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Cardinal Health’s Perfect Implementation

Logistics Viewpoints

Cardinal Health’s senior vice president of global logistics, said of their implementation of the Kinaxis’ supply chain planning (SCP) solution, “I was scared! Pete Bennett, and his co-presenter, Mary Byrne, the vice president of supply and demand planning, spoke during a presentation at Kinaxis’ user conference Kinexions.

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Things Have Changed: What Do We Do NOW?

Supply Chain Shaman

The work done by Terra Technology, in my opinion, is one of two accurate sources of benchmark data on forecasting in the industry. The other is Chainalytics demand benchmarking. Demand planning processes lack standardization and self-reported data is suspect. Get serious about demand modeling. Focus Outside-in.