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Machine learning (ML)a specialized field within artificial intelligence (AI)is revolutionizing demandplanning and supply chain management. According to McKinsey , organizations implementing AI-driven demand forecasting solutions can reduce forecast errors by 30% to 50%.
Over the last two years, I actively engaged technologists and business leaders to redefine demandplanning. In the industry, supply-centric techniques reign with lots of bravado and messaging on control towers, Demand-driven Materials Requirements Planning (DDMRP), and generative AI. Or planned orders to purchase orders?)
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. To manage continuous improvement, companies need a clear definition of excellence and organizational alignment to that goal. They do not excel in planning or forecasting.
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. Write these insights to the APS/ERP technologies as a planning system of record. Why is a reinvention needed?
The ability of an organization to deliver reliable and consistent results for revenue, margin, customer service, and quality in the face of demand and supply variability. Of the twenty companies interviewed, only one can answer the question, “Do you have a good inventory plan?” I cannot get a clear answer. Yes, I think so.
Imagine shipping products directly from your supplier to your customer while maintaining the appearance that your business is the source. Adapt To Fluctuating Inventory and Supply Chain Demand If your business faces seasonal demand changes or unpredictable customer buying patterns, accurately predicting inventory levels can be a struggle.
Clear operating strategy and definition of supply chain excellence across plan, source, make and deliver. Most companies buy decision support technology, but do not redefine work to improve decisions. A Focus on Error in DemandPlanning. What Does Good Look Like? Drives Value. S&OP is a business process.
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? TMS and DRP have little in common, and revenue management operates isolated from demandplanning.) The So What And Who Cares? Stay tuned.
<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.
They source plastic pellets and then use injection, blow molding, rotational molding, and thermoforming to produce their finished products. At Dow, Mr. Baker had Purchasing experience in raw materials, and logistics for their plastics supply chain. They generated revenues of over $750 million in their last fiscal year.
Identify Bottlenecks & Opportunities: Quickly spot areas that are underperforming and need attention or areas where you’re excelling. Control Costs: Track value beyond just the purchase price and manage inventory effectively. Internal warehouse or planning problems? Do you rely on a single source for critical items?
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.
In parallel, the movement to global processes and the elongation of the long tail of planning increased complexity making modeling more difficult. Dependency on Excel. Due to the shortfalls in the evolution of Advanced Planning, 68% of business users use Excel spreadsheets as the primary mechanism for planning.
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?
Nick Lynch is the Global Excellence Manager at Shell Lubricants, a division of Shell Global. Located in the United Kingdom (UK), he has more than twelve years of experience in progressive roles driving demand-drive projects for their global supply chain. The Demand-Driven Journey Begins.
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.
Tailor your supply chain to cater to diverse businesses: In his keynote, Mourad Tamoud, EVP of Global Supply Chain Operations of Schneider Electric talked about how they are segmenting their supply network based on their customer personas and purchasing behaviors. Sourcing leader becomes Innovation coordinator. Collaborative.
As a result, we need to throw away the conventional definitions of demandplanning and S&OP. The translation of ripple effects of short supply, pricing, quality issues, and freight shifts affects how to source, make, and deliver processes should align. Or mine supplier shifts to build alternate buyingplans.
Love it or hate it, daily necessities need to be purchased. Whichever reasons fuel the motivations of your target market, here are the top trends shaping how they’ll buy – and how you can stay front of mind and ahead of the competition. Data source: eMarketer. eCommerce Purchases and “The New Normal” Retail Categories.
We need planning platforms to keep up with all the changes. This means we need more agile, flexible, and scalable planning platforms to process and consolidate new data sources, drive insights using advanced analytics such as AI/ML to drive autonomous decisions, and expand collaboration within and outside our organizations.
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 Another risk is the source of the data. Some AI platforms employ sources that have little veracity, and thus may not provide reliable information.
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.
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.
The models are too different to drive a clear signal from sales activity to demandplanning in the supply chain. Align Transportation Planning and Distribution Requirements Planning (DRP). The lack of a clear determination of baseline forecasting (market demand with no demand shaping) makes this impossible.
They also have 20 sourcing locations across North America from which they can ship make to stock products. The sourcing centers are key to just-in-time, same-day, next-day deliveries. The sourcing centers shipped over 130,000,000 pounds of product last year. Making refractory products is complicated and challenging.
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.
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.
The network senses, translates, and orchestrates market changes (buy and sell-side markets) bi-directionally with near-real time data to align sell, deliver, make and sourcing organizations outside-in. Thoma Bravo purchased Elemica in June 2016. This is a missionary buying market where taxonomies and technologies are not clear.
Now that we’ve established that forecasting is important , you know what your demandplanning organization is going to do and how you plan to structure it , here we’ll address where to put it. If they are directing the demandplanning team, forecasts could be biased high. MERCHANDISING.
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.
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. Many companies implemented demand management processes as a technology project. Everyone has a bias.
Improve demand forecasting and align purchasing with actual sales trends Use sell-through rate analysis to right-size future buys Monitor slow movers and take action early (e.g., It supports smarter buying by showing which categories or products deliver the best ROI. Want to dive deeper into KPIs?
Most companies understand that accurate forecasts are a critical part of minimizing inventory, maximizing production efficiency, streamlining purchasing, optimizing distribution, minimizing waste, and projecting future performance confidently.
By infusing intelligence into every supply chain touchpoint—from sourcing to shelf—AI is driving operational excellence, customer satisfaction, and exponential growth. Markdown Optimization & Season-End Planning: Uses historical data and pricing elasticity to optimize clearance strategies. ThroughPut.AI
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. In today’s world, with buy anywhere, pick up anywhere kind of paradigm, supply chains are a lot more complex. The data sources and the types of data are exploding, if you look at it.
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.
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. Accurate planning not only reduces stock and improves service levels; it also reduces costs by avoiding expediting and minimising write downs.
Last week, I interviewed Robert Byrne, founder of Terra Technology on his demandplanning benchmarking study. This is his fifth year of studying demand processes. Despite all of the focused attempts to implement new forms of demandplanning, the business costs and inventory spiral out of control due to unchecked complexity.
Thriving In ‘The New Normal’ With 5 DemandPlanning & Forecasting Methods. Do you remember the time when the COVID-19 pandemic lockdowns were announced across the world, followed by the panic purchase of essentials to the point where supermarkets and grocery stores were left with empty shelves? Demand sensing method.
In the second act of supply chain planning–tightly integrated ERP to supply chain planning–I was an industry analyst. I was an avid student of supply chain excellence; and in this role, I watched as best-of-breed solution after best-of-breed solution replaced with more complicated technology. I was a skeptic.
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 Complexity 1 – Plan/Source/Make/Deliver/…. Demandplanning. DemandPlanning is still a big struggle in many, even mature companies. How to ensure their buy-in? And this is just for the planning domain. Many companies try to run their supply chains on Excel.
The platform at present provides a unified network to 85,000+ brands, suppliers, manufacturers, retailers, logistics providers, and banks for supply chain orchestration from source to delivery. The software specializes in auto parts sourcing across all models and markets. The SCM tool helps foster collaboration across the ecosystem.
by Trevor Miles These were the words that popped out at me during an excellent presentation by Alex Brown of Xilinx during his keynote presentation. Source: [link]. Notice that the EOQ equation does not even consider the cost of transportation because it assumes it is a constant regardless of the quantity purchased.
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