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Planners are uniquely positioned with an end-to-end focus, from procurement of materials, through manufacturing and engineering, to the movement, storage, and delivery of finished products or services. Supply chain planners are now frequently tasked with initiating transformations to address these various pressures.
I will also pen my 95th report for this week’s Supply Chain Insight’s newsletter. It is one that is often asked: “S&OP How Do I Get Started?” ” S&OP: How Do I Get Started? I asked, “Why is S&OP important to your business?”
Over the last five years, I have helped two companies, Sonoco Products and Owens Illinois (OI) with their selection of technologies to improve Sales and Operations (S&OP) planning. Both companies provide packaging materials to the food manufacturing industry. S&OP Matters. Owens Illinois (OI), a $6.3
Todays large-scale manufacturing supply chains are more geographically distributed than ever. And manufacturers are facing unprecedented demand volatility. Automakers and other large-scale manufacturers are often challenged to match their traditional lean production approaches with todays complex business landscape.
We conclude this two part series about manufacturing operations excellence by consultant Chuck Intrieri, by outlaying why manufacturers should focus on a critical component that will help sustain manufacturing operations excellence for years to come. What is Driving Sustainable Manufacturing Operations Excellence?
KPIs are essential in S&OP as they provide a quantitative framework for gaining visibility, aligning efforts, supporting decision-making, and driving continuousimprovement across the business. Ideally, your S&OP KPIs should consist of a mix of strategic, tactical, and operational metrics.
Over the course of the last two years, we at Supply Chain Insight s have worked on a methodology to gauge supply chain improvement. The third principle is that the supply chain is a significant contributor to corporate performance, and that supply chain improvement can be tracked and measured based upon public financial statements.
Blending Forecasting, Production Planning, Advanced Scheduling and a Connected Shop Floor For manufacturers, the difference between success and failure often comes down to how well you can synchronize your people, processes and systems. Lets take a step back and consider a challenge most manufacturers face: demand volatility.
Labor day also signals the end of summer, and for many supply chain leaders the beginning of 2017 strategy discussions and intense S&OP debates to finalize Q3 and Q4 planning. Before I started doing this research, I believed procurement and manufacturing were aligned. Digital manufacturing is also a disruption.
Outsourcing–procurement, manufacturing and transportation– decreased visibility and increased data latency. New forms of data–telematics, GPS, weather, sensor data–could help, but these new forms of data do not easily fit into today’s supply chain solutions. 4) S&OP Feasibility.
Ronan Stephens, the Senior Vice President of Supply Chain Management and External Manufacturing, explained how the company set out on a journey to improve customer service while also reducing costs. It was thought that the company probably did need to improve their supply chain planning (SCP) capabilities.
Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. There are a number of techniques and tools that can help drive improvements across the company; 1) Systemic continuousimprovement tools. by John Westerveld. What was the impact?
Functional silos define today’s supply chain organization. This lack of alignment is an impediment to improving balance sheet results. My first job was in manufacturing in the 1980’s. In the traditional supply chain world, the processes of sell, deliver, make, source, and plan are separate and distinct.
Because he had reduced his buffers—both inventory and manufacturing—and had built a push-based supply chain using a forecasted demand signal, he was failing in many markets. How could we improve outcomes through better work in horizontal processes? (S&OP, I see many ironies. There are too many to count. Let me give you a few.
Cardinal Health, a global manufacturer and distributor of medical, surgical and laboratory products, is focused on continuousimprovement of service. Global logistics leaders wanted to improve service levels, lower costs, and fortify Cardinal Health’s supply chain planning process. They already had a Supply Planning COE.
As manufacturers intentionally design their supply chain flows, AI becomes a key ally in synthesizing complex data sets, managing higher numbers of SKUs, and navigating intricate operations – while meeting rising expectations for faster fulfillment and customer satisfaction.” The same holds for the supply chain organization.
In the last 30 years S&OPimproved performance in many businesses. However, S&OP has not yet substantially delivered on its ultimate promise of enterprise wide resource management, rolling financial forecasting and strategy deployment. 71% think we need more industry standards around S&OP.
Not only has she helped improve Berry’s supply chain during one of the most challenging years – she’s also served as a role model for the supply chain industry, plastics manufacturing industry and women in general. Francis acts as ChemPoint’s S&OP Manager, where she manages the Supply & Demand Planning Team.
In the last 30 years S&OPimproved performance in many businesses. However, S&OP has not yet substantially delivered on its ultimate promise of enterprise wide resource management, rolling financial forecasting and strategy deployment. 71% think we need more industry standards around S&OP.
In today’s fast-paced business landscape, having an efficient supply chain department is more important than ever. A streamlined supply chain can make a significant impact on the overall success of a business, improving operational efficiency, increasing customer satisfaction, and driving revenue growth.
S&OP and Executive Meetings, a Necessary Tandem As mentioned in our article, “Understanding Sales and Operations Planning” , S&OP is a structured planning process that uses forecasted customer demand to drive production schedules. However, aligning all departments and members included in the process is not enough.
We are focused on continuallyimproving the sophistication of how we service our customers, and the timing of doing so couldn’t have been better. Berlin Packaging brings together the best of manufacturing, distribution, and income-adding service providers. These factors include, but are not limited to, continuing U.S.
If you’re a supply chain management professional, you’re probably aware of how important it is to continuouslyimprove your skills and knowledge in this field. It covers the basics of procurement, including procurement strategies, contract management, and supplier selection. Fresh, easy to digest format.
In the last 30 years S&OPimproved performance in many businesses. However, S&OP has not yet substantially delivered on its ultimate promise of enterprise wide resource management, rolling financial forecasting and strategy deployment. 71% think we need more industry standards around S&OP.
It’s a fast-paced, evolving industry that has a lot of challenges, but also plenty of rewards, including a potentially lucrative income. We have Courses like S&OP deployment, Supply Chain Digitalization , , and Negotiation in Procurement. Here’s an easy way to learn how to apply it to Supply Chain.
The traditional manufacturing job defined the middle class. As we have driven improvements in globalization, jobs shifted as companies chased lower costs of labor. Today’s populist movement is about new winners and losers. Border crossing(s), port unloading, and global visibility are barriers. A Personal Reflection.
…for 8:00 AM strategy meeting(s) with clients.) To use the Barnes example, in this blog post, let’s focus on simplicity. Each are good at localized planning within a focused area of demand, supply, network design, transportation planning, material sourcing or finite scheduling. Let’s start with a definition.
Improvement work is the stuff of 80-hour work weeks, but is it strategic? Yes, in the sense that continuousimprovement is table stakes for company survival, but, no, in the sense that these improvements are by definition within the box. Is there any inherent value in how we procure, produce and plan?
Improvement work is the stuff of 80-hour work weeks, but is it strategic? Yes, in the sense that continuousimprovement is table stakes for company survival, but, no, in the sense that these improvements are by definition within the box. Is there any inherent value in how we procure, produce and plan?
Using AI driven product nature of being and smart attributes, data can be structured to support the needs of ERP applications as well as strategic sourcing and Value Analysis activities , all from one data set.
Getting your products into the hands of your customer is the ultimate goal of every manufacturing and distribution company. Turning raw materials into products that are manufactured, packed, shipped and delivered on time to the final customer requires coordinated planning and execution of activity across the whole supply chain.
These copious, non-linked and editable records are used to manage, control and plan for every eventuality for some of today’s most sophisticated automotive manufacturing plants the world over. When looking at a software solution to support FMEA, it’s easy to ignore the many other requirements within Ford’s CSR.
Least attention is paid to this category for the purpose of stock control and planning and procurement decisions for such items may be automated. Accumulation Bin: In manufacturing and assembly, an accumulation bin , sometimes called an assembly bin , is a location or receptacle into which components for assembly are gathered together.
the “inventory to sales” ratio (inventory levels divided by a month’s worth of sales) spiked in late 2008/early 2009 as the recession caught companies with way more inventory than needed versus suddenly shrinking demand. Source: Commerce Dept. Source: SupplyChainDigest. Source: Supply Chain Shaman.
If the health crisis led to a collapse of nearly 25% of manufacturing production in the spring of 2020 ; it has now bounced back and returned to a level of production close to what it was before the crisis. and that of the pharmacy is 10 points above. ( *INSEE Source No 262 published on the : 10/05/2021 ).
Nokia is currently preparing for another major change, its purchase of Alcatel-Lucent, which is expected to close in Q1 2016. At the same time, the entire telecommunications industry continues to evolve at tremendous pace. By Helen Armstrong. What is your responsibility? “As It’s a one-stop shop.”. You can do it on site.
Operations management consulting is a discipline designed to improve your company’s internal operations and processes, making them more efficient, streamlined and ultimately, profitable. Myth: Operations consulting is only for the manufacturing sector. They talk with front-line workers, executives and everyone in between.
Following this, data sources are identified and shared, and success metrics and business outcomes are defined so that everyone works toward the same goals. This is where the pilot project’s results are analyzed, to decide whether to define expansion and go forward with full-scale deployment of ThroughPut AI.
Even though there’s plenty of data out there, it’s still a pretty manual process to get the data ready and analyzed, which drastically slows decision making down. This technology is not just about speed; it’s also about precision.
Now as any architect will tell you, it’s a mistake to build on top of wonky pillars, so throughout this post, we’ll concentrate on aligning the three supply chain pillars … and the benefits of doing so. It’s because that’s what drives confidence and satisfaction among all your business stakeholders.
However, standing still and sticking to old dogma’s, not innovate, come up with new ideas and envision a better supply chain planning future is not an option for me. Planning parameters (like a lead time, safety stock, etc) can be maintained continuous and become probabilistic in nature. But where we can, we have to consider it.
It starts with the needs of the customer’s customer and flows through the extended supply network. Demand is seen as a fixed set of numbers, and as a result, the team’s focus is on numbers without understanding the drivers of the markets. The automotive manufacturer had a surplus of green vehicles that no one wanted.
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