Demand Management’s Partner in Crime – Central Planning


Arguably the two most important core components of managing the supply chain or demand-supply network are demand management (DM) and Central Planning (CP). Demand Management’s Partner in Crime – Central Planning was first posted on May 12, 2020 at 8:05 am. ©2017 CP is sometimes referred to as master planning or supply planning. ©2017 " Supply Chain Link Blog - Arkieva " Use of this feed is for personal non-commercial use only.

The Next Great Disruption Coming to Supply Chains


But, we continue to see the trend as a sales and/or a demand planning issue; something where we need better visibility to real time demand or a finer cut of demand signals. Then, they check online for deals and shipping dates. They understand what options make up the end product, so they demand “deals” on these options (such as memory on a PC). In essence, the consumer is putting a postponement demand on the brand.

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A River Runs Through It…

Supply Chain Shaman

It is the river of “demand.” While most companies attempt to shape demand–through promotions, new product launch, pricing, sales incentives and marketing–they confuse demand shaping with demand shifting. Shifting demand increases cost and complexity while shaping demand increases market share or baseline forecast demand for the product. Demand for products/services is not unlimited. A Focus on Demand Flows.

Want to Increase Sales? Don’t “Brush” the Weather Aside

Supply Chain Nation

Given my interest in supply chain, I found the store manager and politely asked about the shortage. A cold snap in Florida, for instance, could cause the citrus industry to modify their shipping commitments, retailers to change their pricing, and juice manufacturers to adjust their production plans. The types and examples are as variable as the weather patterns, and as volatile as consumer demand. “Where’s the snow brush for my car?”

After your product ships (Part 1): Data retailers share and why it’s important


This metric is the best indicator of true demand because it measures when an end consumer actually buys a product, not just when a retailer places an orders, or sell-in. With that important distinction in mind, Net Unit Sales is what all brands should be using to measure performance, forecast demand, manage replenishment, and many other day-to-day sales and supply chain execution activities. Landing a product on shelves is far from the last step in the sales cycle?—?monitoring

A Contrarian View – Embracing Ship-from-Store is Bad for Business

Supply Chain Nation

The meeting touched on some “vision” topics in retailing and an industry analyst that I was sitting next to, Greg Girard from IDC, offered a statement along the lines of “retailers should try to never ship from the store.” Retailers should strive to never ship from the store, rather than the current thinking that seems to embrace this mode of fulfillment as if it is best practice. Is my strategic approach going to be to double down on ship-from-store capabilities?

Probabilistic Forecasting Can Extend the Life of SAP APO


Since the beginning of time – OK, since the beginning of demand forecasting the standard approach has been a single number forecast that works relatively well with stable high volume demand. They include: Aftermarket demand , spare or service parts, or MRO. Long tail , intermittent or lumpy demand, caused by revenue slicing from large product portfolios, shorter replenishment cycles or shorter product lifecycles.

Rising to the Challenge: How MAXAIR Systems Helped Protect Healthcare Workers During COVID-19

Demand Solutions

For Bio-Medical Devices, International, increasing production during COVID-19 wasn’t just a matter of adjusting to demand. When the pandemic caused sales to increase to five or six times their usual levels, Bio-Medical Devices needed a way to ensure it could manage its supply chain effectively so that it could produce enough MAXAIR CAPR units to meet the exploding demand. And a pandemic that had caused an explosion in demand.

System 100

Supply Chain Diagnostic: A Four-Step Process

Supply Chain Shaman

Most companies cannot get to data by customer on orders shipped incomplete to understand root cause analysis. I am often asked to benchmark demand. Profile volume segments by coefficient of variation by demand flow. Divide the analysis into categories: High volume, very predictable demand. Medium volume products, predictable demand. Medium volume, inconsistent demand. Low volume, predictable demand. Low volume inconsistent demand.

Supply Chain: Learning How to Dance

Supply Chain Shaman

As companies become more mature, the definition of location changes moving from a ship-from location to a ship-to-location to be more customer-centric.). As a result of the CFO’s agenda, the organization’s focus is usually on the management of enterprise data without an understanding of demand latency (time for consumption to translate into order-based replenishment). Demand Consumption. Consumption is managed by rules, policies, and optimization.

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Here are the top automotive inbound supply best practices

The Network Effect

In earlier posts, I talked about order aggregation , new inventory replenishment policies , why a network model makes so much sense , the all important ASN , and international shipping. For suppliers looking to more profitability participate in today’s demanding automotive supply chains, or for those looking to expand their business through profitable growth, they must look outside the traditional solution set. Image by Flickr user Alang7.

How demand sensing can vault forecast accuracy beyond its theoretical limits

The Network Effect

Note, this is part two in a series on demand sensing. Even high-volume products with well-understood seasonality patterns continue to experience high near-term forecast error rates of over 40% while using sophisticated time-series methods for demand planning. However there are many everyday occurrences that will affect demand like changing weather patterns, such as cold snaps or heat waves, which alter consumer demand from historical patterns. Phillipp Pohle/Flickr.

What Will a Supply Chain Planning Job Look Like in the Future?


A pharmaceuticals distributor had two of their three planners simultaneously go on maternity leave and managed comfortably nonetheless. They stock 500,000 products and ship almost 45,000 parcels daily. Planners get their arms around this by leveraging automated demand planning software. I want to “separate off the creation of the statistical forecast from the enrichment of it by the demand planners,” he says. “I

Getting your drinks to the market: Asia’s unique logistics challenges

DELMIA Quintiq

So far, my focus has been on issues related to demand, supply and production. A beverage production plan is set about 2-3 months in advance based on historical demand. Incoming customer orders will continuously generate shipping orders to be transferred to distribution. Individual daily shipments covered by those contracts are then planned in transportation management systems used exclusively by the logistics departments.

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A Guide to Supply Chain Management: Making Intuition More Valuable


Organizations, from health care facilities to manufacturing giants to small restaurants, can be viewed as an ongoing sequence of loosely coupled activities where current and future assets are matched with current and future demand across the supply chain or demand supply network (preferred term of Dr. Karl Kempf – Director of Decision Technology and Senior Fellow, Intel). Demand Management. Supply Planning or Match Assets with Demand (MAD).

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Will the Downturn Signal an Upturn?

Supply Chain Shaman

Demand redefined. As the markets plummet, it is time to remind ourselves that demand is not a forecast. The supply chain needs to respond to market demand and consumer sentiment. Shifts in market demand and the response to volatility define winners and losers. Demand processes are evolving. Smiling, I shared insights on the data available in the market to sense true market demand and the principles of the bullwhip effect as shown in Figure 1. Volatility.

Putting the “S” Back in the S&OP Planning Process

Supply Chain Opz

Sales & Operations Planning has been accepted more and more by both academia and practitioners as the way to balance demand and supply. Introduction For many companies the implementation of a formal Sales and Operation Planning (“S&OP”) process has not delivered the expected improvement in demand and supply integration. In this article, Dr. Marcel Zondag who is an expert in CPG industry will explain some ways to streamline the planning process.

S&OP 100

"Recreating the environment in which historical demand occurred"


At last year’s Gartner Supply Chain Executive Conference analyst Tom Enright summarized the essence of successful demand forecasting with the following statement: “ Demand forecast accuracy depends on your ability to recreate the environment in which historical demand occurred.”. The traditional approach is to employ algorithms that try to match past and future demand patterns. At ToolsGroup we call this “ demand modeling ”.

How to get Through the COVID-19 Crisis with your Supply Chain Intact

Logistics Bureau

As far as supply chain management goes, this is about as bad as I have ever seen it. We are seeing things like enormous demand peaks, very tough resupply situations, and some businesses have seen huge demand drops. While there are scores of issues that business managers are dealing with due to the COVID-19 disruptions, we identified three core areas that you need to focus on right now to ensure your supply chain remains intact during the crisis.

Don’t Be Afraid of S&OP: Four Simple Steps to Jumpstart your S&OP Process


Master Demand Planning. All sources agree that one of the first steps to prepare for a successful journey up the S&OP maturity curve is mastery of demand. This means really mastering the process and technology of forecasting demand, shaping demand and integrating the demand stream into the global planning process. Can you truly say that your processes, systems and organization represent a mastery of demand? This is how we steer the ship.

Don’t Be Afraid of S&OP: Four Simple Steps to Jumpstart your S&OP Process


Master Demand Planning. All sources agree that one of the first steps to prepare for a successful journey up the S&OP maturity curve is mastery of demand. This means really mastering the process and technology of forecasting demand, shaping demand and integrating the demand stream into the global planning process. Can you truly say that your processes, systems and organization represent a mastery of demand? This is how we steer the ship.

Don’t Be Afraid of S&OP: Four Simple Steps to Jumpstart your S&OP Process


Master Demand Planning. All sources agree that one of the first steps to prepare for a successful journey up the S&OP maturity curve is mastery of demand. This means really mastering the process and technology of forecasting demand, shaping demand and integrating the demand stream into the global planning process. Can you truly say that your processes, systems and organization represent a mastery of demand? This is how we steer the ship.

Reduce Lead Time in Your Global Supply Chain with Lean Thinking

Material Handling & Logistics

But it only takes a ship two weeks to travel from China to Australia [where I live], so what is happening for the other 10 weeks?” Many companies try to overcome this problem using ERP systems, demand management tools and other advanced software. The time to ship the goods from your supplier on the other side of the world to you is usually only a fraction of the total lead time. For example, to ship goods from China to the U.S. Delays in arranging shipping.

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How to Manage for Supply Chain Success During Major Weather Events


Our team included logistics, demand management, category management, and distribution from Delhaize, as well as West Coast Distributing and TMC’s Managed TMS® service. Together, we ascertained the potential impact and worked with vendors and carriers to ship and deliver as many loads as possible before Jonas descended. Our risk management plans were adjusted in line with changing conditions on the ground, and the check calls continued throughout the storm.

Supply Chain Case Study: the Executive's Guide

Supply Chain Opz

Professionals in supply chain management use various methods to identify best practices to improve the operations. Analysis of case study is certainly one of the most popular methods for people from business management background. In order to cope with changing customers'' demand, they decide to undertake Mass Customization strategy. The nature of this industry is the short product life cycle, low profit margin, high competition and demand fluctuation.

Can demand sensing really work in today’s confusing IT landscape?

The Network Effect

Note, this is part two in a series on demand sensing. The key is that with the newer network- based platforms , the business processes from forecasting to order management through replenishment and ship can react in ways that maximize customer service levels while also reducing inventory requirements and transportation costs. If you’re impatient though, I suggest you read the new white paper, What is Demand Sensing? Much More than a Demand Management Revolution.

Supply Chain Sins, Fallacies, and Mistakes

Enterra Insights

The Council of Supply Chain Management Professionals reports U.S. Surrett explains, “When shipping documents misreport significant attributes of cargo, the resulting inaccurate or false billing can prompt additional carrier charges. Many operators allow this key step to be managed by suppliers without regard to costs and procedures performed. Moreover, distant suppliers inhibit an organization’s ability to react to changes in end-user demand.

Shaking Things Up in Supply Chain Management

Demand Solutions

Are you tired of seeing “business as usual” in supply chain management? Much to my surprise, he gave me free rein to do what I proposed, and he even told other managers that when Harrison came into their office, they were to put themselves at my service. But at least I finally had a chance to right the ship. Bill Harrison , President of Demand Management, Inc., inventory planning supply chain management

Supply Chain Congratulations in Order!


KGP Logistics’ primary challenge was to accurately forecast its product sales, manage inventory targets and optimize supply plans to improve customer service levels while accelerating inventory turns. Craft Brew Alliance transitioned from a DC-driven distribution network of 10 regional centers to a direct ship model to more than 500 wholesalers. The supply chain and software industries have several high-profile awards and distinctions.

Petrochemical supply chain in flux


. The supply chain for oil-derived products is in a state of upheaval, as demand for automotive and construction products nosedives but pharmaceuticals, food additives, derivative health products and disinfectants is soaring. This is throwing out established demand and dependable patters petrochemical plants could depend on and forced petrochemical companies to intensify demand management and reconfigure production to meet a new, rapidly changing and uncertain environment.

Demand and Fulfillment Blocking & Tackling: Part 5 – Knowledge Is Power

Supply Chain Nation

Demand planning has become a matter of utmost importance for supply chains all over the world, just for the reasons stated above. Strong and agile supply chains have built state-of-the-art fulfillment processes, distribution centers and shipping capabilities to serve demand. Now it is time to gather the right set of data and relay the forecasted demand to the operational functions of supply chain. For more information on demand planning, visit JDA Demand Management.

JDA’s Project with SanDisk, a Western Digital Brand, Recognized for Its Impressive Supply Chain Transformation

Supply Chain Nation

Supply & Demand Chain Executive recently announced its annual list of the best 100 supply chain transformations and projects that deliver bottom-line value to small, medium and large enterprises across a wide range of supply chain functions. land a spot on the Supply & Demand Chain Executive 100 for 2016. Featured Supply Chain Management jda SanDisk supply chain supply chain transformation

Six Sigma Tools and Inventory Management


Instead, it refers to a quality management improvement process used by large scale manufacturers. At first glance, there may not be much synergy between Six Sigma and inventory management. The second is about controlling and managing the stock of raw materials, semi-finished goods and final products. Next, we’ll explore whether it is still relevant today and what it means for inventory management. Six Sigma uses a set of statistical quality management methods.

7 types of manufacturing wastes and how to reduce them


Inventory becomes excessive when you hold stock for “just in case” situations, such as to meet unexpected demand or protect from production delays. A straightforward way to reduce waste of inventory is to use inventory management software.

Supply Chain Management:The Real Headline for the 2011 Holiday.

Infosys Supply Chain Management

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