Remove Definition Remove Demand Management Remove Inventory Remove Metrics
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Just Jump

Supply Chain Shaman

We explore the concept of holistic inventory strategies focused on the form and function of inventory. In the process, we learn that only 15-20% of inventories are safety stock and that the current APS frameworks do not enable a holistic analysis of the form and function of inventory. Lack of aligned metrics.

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Transversing the Paradox River

Supply Chain Shaman

Definition Anomaly: something that deviates from what is standard, normal, or expected. Definition As I follow the evolution of supply chain technology, I am struck by what I see as a stream of paradox and anomaly, and the tendency of supply chain leaders to cling to convention. Measurement. Engines, Models and Workflow.

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The Fight of the Titans

Supply Chain Shaman

Most companies, along with consultants, feel that they know the definition of supply chain excellence. My caution is not so fast… 95% of companies are not making progress at the intersection of growth, operating margin, inventory turns and asset strategies. Figure 1: Supply Chain Metrics Are a Balancing Act. improvements.

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Help Supply Chain Planners Be More Successful In These Uncertain Times

Supply Chain Shaman

By definition, in the current state, supply chain planners work in a lose/lose environment. I find three: organizational design, executive understanding of supply chain, and the lack of a clear definition of an optimization function for supply chain excellence. Could it be, “How to help supply chain planners be more effective?”

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Supply Chain Diagnostic: A Four-Step Process

Supply Chain Shaman

They tend to have many pretty PowerPoint slide decks–full of acronyms, pretty pictures and E2E commitments–but they lack a common definition of supply chain excellence. In the period of 2010-2018, within the chemical industry, margins fluctuated, largely driven by the price of crude, but inventory turns plummeted.

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What About Them Apples?

Supply Chain Shaman

If we look back at history, 70% of companies implemented Vendor Managed Inventory (VMI), however two-decades later only 1% of companies use VMI processes to drive a better demand signal. I do believe in demand planning, but most companies overstate forecast improvements. ” I am in the middle. Everyone has a bias.

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Making Cents Out of Demand Sensing

Logility

Sometimes demand planners focus too much on forecast accuracy and miss seeing the forest for the trees. I was guilty of this from time to time when I led a demand-planning group because we were evaluated on forecast accuracy as one of our key metrics. Here in lays the crux of the issue with demand sensing.