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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. Translation of the demand forecast into planned orders to minimize manufacturing constraints. Let’s take an example. This is a post from LinkedIn today.

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How Can You Improve Value in Your Supply Chain?

Supply Chain Shaman

For example, if I improve the cost structure in transportation, procurement, manufacturing and sales independently, what decision support framework decides the right trade-offs? I observe that organizations are unclear on outcomes and the definition of supply chain excellence. Never start with the process definition.

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Managing Supply Chain Planning in the World of Scarcity

Supply Chain Shaman

This is amplified across the supply chain into an exponential impact on inventory and planned orders for manufacturing. When we measure the bullwhip impact (in my class on outside-in process thinking), the bullwhip between manufacturing and procurement is 2-3X. With the unabated growth in complexity, the bullwhip effect grew.

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Thirteen Years a Blogger

Supply Chain Shaman

Over the past decades the definition of the supply chain has become narrower with a focus on supply and improving enterprise efficiency which decreases resiliency. I think that the answer has five parts: The Belief that the Industry Has Best Practices. Investment in Legacy Technologies. The Lovefest with Shiny Objects.

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Reflection: The Journey to be Market Driven

Supply Chain Shaman

Definition Cambridge Press I firmly believe that unlearning must precede change management. Here I share the definitions given by the students in their final homework submitted at the end of class: “Outside-in planning is a proactive, market-driven approach that uses external signals (e.g., What Is Outside-in Planning?

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Organizational Alignment: Overlooked, but So Important.

Supply Chain Shaman

As an analyst, I am always searching for answers and clear definitions. Companies became less clear on the definition of supply chain excellence and how to implement decision support technologies. This increasing gaps in alignment and clarity of the definition of supply chain excellence was an unspoken risk entering the pandemic.

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Reinventing Supply Chains: Focus on Human Factors

Supply Chain Shaman

Using design theory, the current definitions of planning have regressed despite the advance of promising technologies. Ask a procurement or transportation professional if they have a good demand signal and expect a laugh. Irony Over the last decade, the number of planners at global manufacturing companies exploded.