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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.
Global manufacturing today faces significant operational challenges. How should manufacturers adapt to meet the challenges and shift from product-centric to customer-centric operations? How should manufacturers adapt to meet the challenges and shift from product-centric to customer-centric operations?
Procurement and supply chain management are often used interchangeably—but in practice, the lines between them can blur in ways that create real friction. Misaligned priorities, siloed systems, and unclear ownership can directly impact key performance indicators like cost savings percentage and procurement cycle time.
The waste included: Negative Forecast Value Added (FVA) in demandplanning. In 85% of organizations that I work with, conventional demandplanning processes increase forecast error. This is amplified across the supply chain into an exponential impact on inventory and planned orders for manufacturing.
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.
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?
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?
Bowman, SupplyChainBrain In the rush to adjust sourcing strategies in line with current trends in international trade, the answer might be to think small. manufacturers have spent the last few decades consolidating production at gigantic offshore plants, especially in China. Enter the concept of the “microfactory.”
Forecast consumption into supply planning based on rules (rules-based-consumption). Translation of the demand forecast into planned orders to minimize manufacturing constraints. Matching demand and supply in Sales and Operations Planning (S&OP). Plan adherence in production scheduling.
Its All About the Game Plan The Super Bowlmore than just a game, its an American tradition with global reach. For 58 years, food and beverage and consumer goods manufacturers have battled for dominance, from chips and wings to soda, beer, party supplies, and even aluminum foil for food storage and DIY trophies.
Let’s start with these: Demand Sensing: The reduction of time to sense purchase and channel takeaway. Demand sensing is a process, automated by technology, that reduces demand latency. For the purchase of Tide at Walmart to translate to an order at P&G, the time is 5-7 days. Independent Demand.
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?
We have not designed the planning systems to serve managers, directors, and vice presidents, aiming to improve decision-making and collaboration across the source, make, and deliver processes. This could all change if we discard our current definitions of supply chain planning and start anew. In short, don’t AI stupid.
The Manufacturing Supply Chain Journey through AI and Automation Manufacturing Supply Chains Explained The manufacturing supply chain comprises all the processes a business uses to turn raw materials and components into final products that are ready to be sold to customers, whether these are consumers or other businesses.
This sector is driven by several factors, including the ageing vehicle population, the rise of e-commerce platforms , and technological advancements in vehicle manufacturing. As vehicles age, they require more frequent maintenance, leading to increased demand for aftermarket parts.
The current taxonomy (or frame/models) for the engines does not address the issues of the global multinational manufacturing company. In the Global Supply Chain, there are More Constraints To Address Than Just Manufacturing. Companies need a planning solution to analyze the trade-offs between make, source, and deliver.
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.
by Alexa Cheater Outplay your competition with a smarter, stronger demandplanning strategy. Customer demands are changing. So why isn’t your demandplanning strategy? It’s time to level up your demandplanning and experience revolutionary breakthroughs in supply chain performance, planning and profitability.
Companies that previously prioritized cost-cutting and centralized sourcing quickly found themselves exposed to serious production and distribution risks. In response, many organizations have shifted toward decentralized and regionalized supply chain models, distributing production and sourcing across multiple regions.
Manufacturers are expanding their commitment to sustainability initiatives that are not only good for the environment but also contribute to profitability by optimizing operations, reducing waste, and conserving energy. To support these efforts, more manufacturers are implementing AI-powered energy management techniques.
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.
Good forecasting leads to good demandplanning —and good demandplanning means better profitability. That’s why it’s essential to be sure you’re equipping your organization with the right demandplanning software. Here are our answers to some of the most common questions about demandplanning software.
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.
Blending Forecasting, Production Planning, Advanced Scheduling and a Connected Shop Floor For manufacturers, the difference between success and failure often comes down to how well you can synchronize your people, processes and systems. Lets take a step back and consider a challenge most manufacturers face: demand volatility.
Automation is at the center of modern manufacturing businesses, with companies exploring the possibilities of artificial intelligence in improving workflows and profitability. Industrial engineers incorporate these technologies in designing and fabricating advanced manufacturing systems. How AI Is Changing the Manufacturing Industry.
The first story is about a large regional food manufacturer. They are now on their third implementation of supply chain planning. So to put the team at ease, I spoke, “Let’s test your demandplanning model to see if you can be successful with your current approach.” Let’s Be Customer Centric.
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.
Companies have a known problem synchronizing their supply chain plans with what can actually be executed. Manufacturers refer to it as the “shop floor to top floor disconnect.” A supply planning solution may only be able to achieve rough-cut capacity planning for a large, complex supply chain.
Primed for transactional efficiency, these legacy architectures based on relational databases drive order-to-cash and procure-to-pay efficiencies. 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 company engages in contract manufacturing services for companies. Then Jabil handles the sourcing and manufacturing of those products. Tymon’s contribution to Jabil’s offerings is a service line known as ‘planning-as-a-service.’. They are sourcing from over 27,000 suppliers. Jabil is a big company.
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.
Why Traditional Demand Forecasting Falls Short in Aftermarket Supply Planning Unlike fast-moving consumer goods with predictable demand patterns, aftermarket parts planning requires highly specialized forecasting approaches. Its time to move beyond the guesswork in demandplanning. The outcome?
With the right technology, process manufacturing strategy, planning, and management can be simplified. Manufacturers have been through a trial by fire with supply chain disruptions and changes in demand during the past two years. 4 Digital Solutions That Address the Top Challenges for Process Manufacturers.
Industrial manufacturing supply chains operate in one of the more complex environments in recent memory. Variables like global disruptions, rising input costs, and increasing customer demands continue to challenge even the most sophisticated supply chains. This leaves planners guessing which risks are relevant and how to respond.
Updated: May 15, 2025 Published: March 16, 2022 So much of what goes into running a manufacturing operation involves planning ahead. One of those areas is capacity requirements planning. Proper capacity requirements planning is critical to manufacturing success, as this process determines if a company can even deliver on orders.
Consumer packaged goods (CPG) manufacturers and their end-customers constantly engage in a complicated dance that has no choreographed steps. Sometimes CPG manufacturers take the lead and sometimes consumers take the lead. Most business consultants today urge CPG manufacturers and retailers to become consumer-centric and demand-driven.
Multiple manufacturers, multiple relationships, multiple distribution models, multiple contracts. These complexities, layered with globalization, shorter product life cycles , and associated volatility in demandplanning, has produced the most dynamic supply chain landscape we have ever experienced.
What Contractors Need to Streamline Procurement in 2025 By Ian Summers (pictured) Content Writer 111 Views You’re on-site before dawn, the framing crew’s ready, but the steel shipment’s stuck in limbo, the invoice isn’t approved, and your project management app just pinged you for the fourth time.
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?
Download our ebook: Demand Forecast Is Why You Need to Adopt a Service-Driven Supply Chain Strategy Top Four Strategies for Demand Forecasting Success In the current landscape, the challenges of supply chain disruptions remain a pressing concern. Image source: Stefan de Kok 2.
The 6 Best Industrial Marking Machine Manufacturers By Claire Lloyd (pictured) Content Writer 124 Views Industrial marking machines help companies maintain accuracy, efficiency and compliance. Manufacturers rely on these machines to keep workflows running smoothly and avoid costly errors or rework. Telesis Technologies, Inc.
Mr. Bailey has worked most of his career at VF – as an industrial engineer in facilities, in strategic sourcing, running offshore operations, and now as the person in charge of the company’s entire supply chain. VFC’s supply chain sourced over 410 million units of apparel, footwear, and accessories in their last fiscal year.
Why Traditional Demand Forecasting Falls Short in Aftermarket Supply Planning Unlike fast-moving consumer goods with predictable demand patterns, aftermarket parts planning requires highly specialized forecasting approaches. Its time to move beyond the guesswork in demandplanning. The outcome?
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