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Definitions Matter

Supply Chain Shaman

In my writing, I try to get clear on definitions. Traditionally, the definition of end-to-end supply chain planning meant: Forecasting based on order or shipment patterns. Forecast consumption into supply planning based on rules (rules-based-consumption). Let’s take an example. This is a post from LinkedIn today.

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Essential Guide for Demand Forecasting in 2024

ThroughPut

Demand forecasting is a critical component of supply chain management, especially in the complex and unpredictable market landscape of 2024. Accurate forecasts are essential for maintaining inventory balance, ensuring customer satisfaction, and achieving financial stability. What is Demand Forecasting?

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Inventory Everywhere, But Not the Right Product to Ship

Supply Chain Shaman

Bloated inventories. Despite investments in planning, today, industries hold 28 more days of inventory than in 2004. The larger the number of days of inventory, the greater the cash drag.) Changes in Inventory Year-end inventory values by industry from Y Charts. The story continues. Rising inflation. Next steps?

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Just Jump

Supply Chain Shaman

In my first classes, I taught the group how to speak the language of demand—forecastability, Forecast Value Added (FVA), backcasting, demand and market latency, and market drivers. We explore the concept of holistic inventory strategies focused on the form and function of inventory. Instead, we need to Jump. The So What?

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What Does Good Look Like S&OP?

Supply Chain Shaman

Clear operating strategy and definition of supply chain excellence across plan, source, make and deliver. There is a clear definition of the role of the supply chain in the delivery of value. Definition and alignment on why should make a decision and what a good decision looks like. Improved Forecast Value Added (FVA).

S&OP 303
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Supply Chain Resilience. Really?

Supply Chain Shaman

Expand the “FLOW” program for logistics information sharing to forecast transportation flow. We are not clear on definition. So, if you use the Supply Chain Insights definition, you might ask, how are we doing commercially against this goal? I am currently doing research on inventory management. The reason?

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What’s Your Forecast Accuracy Target for 2019?

ToolsGroup

Editor’s Note: Two years ago we posted a blog about how to set an annual forecast accuracy target and it was one of our most popular topics. It seems as if everyone is looking to improve their forecasting performance. How much can you realistically expect to improve your forecast accuracy each year?