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Given your expertise, I’d love to hear what alternatives you recommend for better demand forecasting and real-time visibility beyond what’s commonly adopted today.” I know that your primary focus is procurement. Over the last two years, I actively engaged technologists and business leaders to redefine demandplanning.
Advanced supply chain planning software leverages these probability distributions to optimize inventory targets, balancing service levels against carrying costs with mathematical precision. However, this approach ignores real purchasing behavior, such as customers buying complete sets of four tires. The result?
In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. Supply chain was defined in 1982 as interoperability between source, make and deliver. Ask a procurement or transportation professional if they have a good demand signal and expect a laugh.
The Failure of Existing DemandPlanning Solutions. During the pandemic, supply chain leaders turned off their demandplanning solutions. Re-implement demandplanning, trade promotion management, and revenue/price management together to improve the baseline demand signal. Lessons Learned. The reason?
Today, I speak at the North American Manufacturing Association, Manufacturing Leadership Conference, in Nashville on the use of data to improve supply chain resilience. Interestingly, in Q3 2023, 38% of manufacturers, distributors and retailers missed their target for revenue guidance for the quarter. The result was restatement.
Each executive has a different perspective on the definition of supply chain excellence, but they are never discussed and aligned. His organization purchased an advanced planning technology from well-known best of breed provider, and the implementation should have been successful, but it was not. What Is The Ring of Fire?
During the 1980s, I was on a management team for a large manufacturer. The Company was attempting to gain economies of scale by grouping manufacturing technologies within a common infrastructure to reap the benefits of a co-generation facility, a centralized warehouse, and a talented administrative team. Lack of executive buy-in.
Primed for transactional efficiency, these legacy architectures based on relational databases drive order-to-cash and procure-to-pay efficiencies. Like Linus clinging to his blanket, supply chain teams make most of their decisions on Excel spreadsheets. Or a unified data model across source, make, and deliver for planning?
This manufacturer produces plastic reusable material handling containers and plastic fuel tanks. The Company operates eighteen manufacturing facilities, nine distribution centers located throughout North and Central America. Mr. Baker spent over 34 years leading procurement teams at The Dow Chemical Company.
The group needed a clear market signal on consumption patterns and the translation of demand with minimal latency to optimize price, mix, and schedule the factory to manage margin. Consumers constantly change the mix preferences in purchases. Somedays, the focus is on steaks or ribs and the next on the purchase of ground or cubed meat.
similarly, over 95% of manufacturers invested and implemented supply chain planning, but their primary tool today is Excel. The research supports that we have not improved supply chain visibility, and we are going backwards in delivering results through supply chain planning.” ” Does the Dog Hunt?
PWC’s Digital Trends in Supply Chain Survey reports that 83% of manufacturers say that supply chain technologies have not delivered the expected results. When he speaks of the supply chain, he means procurement. The models are too different to drive a clear signal from sales activity to demandplanning in the supply chain.
At the end of a long day of a strategy session on supply chain excellence with a client, I needed to fill up some time in an agenda. The genesis of the River of Demand learning activity. Over the last decade, I find fewer and fewer companies understand supply chain planning. The result? Background. The takeaway?
Instead of high-level frameworks, attendees heard directly from global manufacturers including RHI Magnesita, Teleflex, and Marelli. Powered by o9 Solutions, the initiative aims to modernize planning and execution capabilities across the enterprise. The agenda prioritized outcomes over abstraction.
Integrated Planning: Tight Coupling of Enterprise Resource Planning (ERP) to Supply Chain Planning (SCP). When companies tell me that they need to exchange their current Supply Chain Planning (SCP) from a best-of-breed provider to get a leg-up, I ask, “Why?” Demandplanning is less industry specific than supply.
But there is good news: a convergence of process, data, and technology provides the real-time and predictive visibility needed to optimize supply chain planning, ensuring food manufacturers can build resilience now and for the future. Preparing for Market-Driven Demand. PlanningManufacturing Based on Demand.
I would like for us to move past the conventional view of sourcing strategies and globalization to drive improvements to the supply chain in a variable world. The populist narrative of sourcing globalization is only part of the story. This is especially true in the world of demand management. Let me explain. Forecastability.
<Bear with me… > Here I share a nine-step process in an attempt to help companies unravel the process for buying supply chain planning software. Let’s face a hard fact: the supply chain planning market is a mess. They center on how to make a good decision in the purchase of supply chain planning solutions.
In Figure 1, note the lowest satisfaction is Generation X (birth years of 1965-1980) in manufacturing organizations. In my share groups, large manufacturing clients have a Q1 freeze on travel. During a market downturn, the life of a demand planner is tough. 3) Buy Technologies that Supply Chain Planners Will Love.
For Greater Product Performance Visibility and Improved Sales & DemandPlanning Consumer Packaged Goods (CPG) manufacturers operate in an increasingly competitive environment, where the ability to access and analyze timely, accurate data can make or break a company’s success. Each retailer organizes their data differently.
In the global world of businesses, companies often seek help from sourcing agencies to figure out how to get the things they need. But what’s a sourcing agency or sourcing agent and how does it make buying things easier? Let’s explore this world of sourcing agencies and understand what they do.
HarbisonWalker International Manufactures and Distributes Refractory Products. But refractories are used in a wide variety of industries, particularly manufacturing industries with high temperature or corrosive production processes. The sourcing centers are key to just-in-time, same-day, next-day deliveries.
This reality is compelling F&B companies to rethink their strategies and approach to supply chain optimization and demandplanning. Staying competitive in this intense landscape demands finely tuned operations that are highly efficient and effective – from product concept to customer consumption.
As a result, a wide range of businesses, from restaurants, and retail chains, to manufacturers, have been redesigning their business services and operations and re-engineering their supply chains. Emerging Themes for Supply Chain Planning. We need planning platforms to keep up with all the changes.
The company sources goods from 34,000 suppliers out of 30 nations. Driving an excellent supply chain depends on how people are recruited and managed, processes, and the technology used. Lead times expanded even for domestic manufacturers because they sourced raw materials from overseas. Getting the Most out of People.
Whether you''re a manufacturing company in China, a sourcing agent in London or a world''s leading company in Silicon Valley, we''re all in a global supply chain networks. Research from APQC’s Open Standards Benchmarking in procurement shows that organizations without formal SRM programs report 121 percent longer supplier lead times.
” I believe that the focus should be improving reliability (Forecast Value Added (FVA), first pass tender and yield, and manufacturing schedule adherence) while decreasing process, demand, and data latency. As a result, we need to throw away the conventional definitions of demandplanning and S&OP.
Many of the managers I speak with are buying into the application of artificial intelligence in the workplace, but often struggle to identify specific processes that are best suited for AI.I This is an assessment of whether our organization has the capabilities to adopt AI. Should We ? Tariffs coming out of the US, how will that impact us?
The COVID-19 pandemic has pushed manufacturers to rapidly shift gears, from addressing work-from-home policies to managing extreme swings in demand and uncertain supply chains. In the process, it has highlighted an aspect of manufacturing ERP that is not as visible in more normal times— business continuity.
Inventory is the lifeblood of any manufacturing business. By leveraging analytics and key performance indicators (KPIs), manufacturers can optimize inventory, reduce waste, and boost profitability. It supports smarter buying by showing which categories or products deliver the best ROI. But what exactly should you measure?
I do believe in demandplanning, but most companies overstate forecast improvements. I worked for a software company for almost a decade and implemented demand management solutions in the 1990s for multiple companies. At that time, the demand processes were largely regional. ” I am in the middle. Moving Forward.
However, if the focus is on implementing technology quickly, the teams never refine the models to improve outcomes and build planning capabilities. The third issue is the lack of understanding that global processes–to maximize the economies of scale in transportation and material buying–need strong governance.
Serving 4 million customers in 150 countries with a global team of 100,000 experts across more than 100 locations (manufacturing sites and distribution centers), Johnson Controls’ ability to plan is critical. “We have the entire gamut of manufacturing strategies,” remarked Scrimgeour.
The wholesale distribution and manufacturing (WD&M) landscape is entering a new era. AI-infused inventory and order management is the way forward for wholesale distributors and manufacturers hoping to bridge the supply-demand gap and meet and exceed their customers’ new B2B omni-channel expectations.
Cycle stock is the most effectively managed through the successful implementation of production planning. Cycle stock is the management of stock required to cycle through production runs and procurementbuys effectively. This planning technology is tricky to implement and many of the technologies are not up to the task.
Having a good Supply Chain Management (SCM) process is crucial for offering excellent customer service. So far, we’ve seen how data is an integral part of the demandplanning cycle. However, completing this task becomes complex when multiple systems store demandplanning data.
ToolsGroup’s service-driven multi-echelon inventory optimization (MEIO) provides a single view of demand and supply to help manage uncertainty and increase product availability. . “We That’s why global leaders like Absolut, BP and Harley-Davidson rely on us year after year.
There is omni-channel you can buy products anywhere, you can order stuff from your mobile phone and then get delivered to your home, and so on. So as a consumer, you have a lot more channels through which you can engage with the manufacturers. The data sources and the types of data are exploding, if you look at it.
The network senses, translates, and orchestrates market changes (buy- and sell-side markets) bidirectionally with near real-time data to align sell, deliver, make and sourcing organizations outside-in. Let’s start with a clear definition of the terms: Demand Networks. Demand Sensing. Demand Shaping.
Planners need to contend with inconsistent consumer buying behavior, the need to satisfy multiple channels, complex sourcing options and proliferating “sub-seasons,” collections and assortments. Brand owners need a plan that uses both top-down and bottom-up inputs to create a “one-number plan” the entire organization can trust and use.
Supply chain optimization is a key component of the manufacturing supply chain process, helping companies control their input costs to be able to provide effective goods or services to their customers. It goes beyond just maximizing the overall supply chain performance in terms of material delivery excellence. Inventory control.
Managing the supply chain involves the delicate art of aligning your product supply precisely with customer demand. A myriad of professionals within the field ensures timely deliveries from suppliers and orchestrates manufacturing processes to meet your requirements, contributing to a rewarding career path in supply chain management.
While traditional forecasting approaches use statistics to model history assuming that historic shipments and order patterns represent future market patterns, in the times of market volatility, especially for manufacturers two-five levels back in the supply chain, traditionally forecasting is not adequate.
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