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The larger the organization, the more tension with conflicting functional metrics making decisions more difficult. Note in Figure 1 the gaps from recent research between supply chain planning and manufacturing, logistics, and sales. Demand continues to be uneven and unpredictable. For me, there is no time like the present.
This article is a shortened version of themes & topics discussed in our newest DemandPlanning Core White Paper. Demandplanning has long been a requisite of supply chain management, but in a modern, high-speed environment, it’s become something more: a strategic lever for agility, and competitive advantage.
Collaboration between Sales and Operations professionals in the demandplanning process is critical if you want to achieve better delivery rates, higher service levels, fewer stock-outs and increased customer satisfaction. THE DEMANDPLANNING PROCESS (FOR SALES) Simplify the inputs needed by Sales.
My friends would tell me to relax and get my Groove on b ut, I find myself deep into a presentation for a client’s design thinking session next week. Note that at this time, demand volatility risk was larger than economic uncertainty. However, we have made little progress to mitigate demand variability as a supply chain risk.
Stakeholders who care about forecasting in demandplanning care about accuracy, and usually will not accept a new forecasting method unless it is rigorously validated against known forecasting benchmarks with proven accuracy. In this way, forecast accuracy trends can be leveraged in adjusting demandplanning.
On Friday, I presented an overview of outside-in planning to a consulting group. I love the questions when I present. Today, I am again teaching an open class on outside-in planning concept s. Based on the work with Georgia Tech, we are getting clear on which metrics matter by industry. The reason?
I had worked hard to teach the team presenting to talk the language of demand , but it was not understood at the board-room level. I asked myself, “How ironic is it that the technologies and processes of the past are always presented as the answer.” Let’s make 2015 a great year!
Supply chain and procurement executives should urgently pay heed to the need to make sure it is distributed to them, said Jay Koganti, vice president supply chain at the Center of Excellence of Estée Lauder , during a presentation titled “ AI Trends Transforming Supply Chain – and How Leaders Should Respond,” at the DPW New York conference June 11.
Sense quantifiable changes : The resident applications, specifically, demandplanning, supply planning, and inventory planning all have key variables that contribute to a network model. A critical step to Continuous Network Optimization is for the rapid and systematic presentation of recommendations to decision makers.
According to Ben, who oversees Chainalytics’s Integrated Demand and Supply Planning practice (which includes their DemandPlanning Intelligence Consortium), many companies take last year's forecast accuracy metric and simply add a few percentage points to establish the coming year’s goals.
Traditional demandplanning has long been owned by only the supply chain organization – gathering data from all corners of the business through lengthy spreadsheets and often leaving out critical information. The collaboration here is part of the DemandPlanning process which is the start of the S&OP process for most companies.
Traditional demandplanning has long been owned by only the supply chain organization – gathering data from all corners of the business through lengthy spreadsheets and often leaving out critical information. The collaboration here is part of the DemandPlanning process which is the start of the S&OP process for most companies.
Traditional S&OP planning often deals with product families or wide-ranging product categories and though providing valuable data, this process delivers results at an aggregate or macro level. In SIOP, accountability is a huge part of achieving desired outcomes, improving monthly metrics and satisfying the customer needs.
Sense quantifiable changes : The resident applications, specifically, demandplanning, supply planning, and inventory planning all have key variables that contribute to a network model. A critical step to Continuous Network Optimization is for the rapid and systematic presentation of recommendations to decision makers.
Cardinal Health’s senior vice president of global logistics, said of their implementation of the Kinaxis’ supply chain planning (SCP) solution, “I was scared! Pete Bennett, and his co-presenter, Mary Byrne, the vice president of supply and demandplanning, spoke during a presentation at Kinaxis’ user conference Kinexions.
While fortuitous at present, it is a good time to reflect on lessons learned. The evolving framework is centered on a unifying data model based on the flow of sense, design, plan, orchestrate, learn, and adapt. The focus needs to move from functional metrics to balanced scorecard outcomes. in 2021 was a rough ride.
In other cases, information is limited because of interdepartmental rivalries, for example, “I don’t want demandplanning to see my supply planning information. In today’s competitive manufacturing environment, the only metrics that count are how a change impacts the company’s goals. So what do you think?
A single unified model connects demand and supply in one place. Companies can calculate the demandplan, project their inventory requirements, and compare scenarios to calculate the best balance of constraints and trade-offs. This detailed plan can then be presented to executive management for review.
Here “near real-time” is defined as a refresh of key metrics every five minutes. In fact, part of Mr. Wakefield’s presentation involved coaching prospective customers on the arguments that can be made to IT. Longbow Advantage’s main business has been doing warehouse management system (WMS) implementations. Final Thoughts.
The goal is to match projected demand over the coming quarters with the ability of the organization to produce products that meet that demand. In the present month, supply is matched to demand for the coming 3 years with a particular focus on what needs to be produced for the coming quarter.
The presentations were all hard-hitting. In the Supply Chain Metrics that Matter table, we can clearly see that “operating margin” and “inventory turns” matter to public financial performance. Each faces four years of deterioration on this important supply chain metric. The Kimberly-Clark team is bullish.
In the last six months, in my travels, I have presented to supply chain teams in China, Belgium, France, Germany, Peru, Mexico, Netherlands, South Africa, Singapore, and the United Kingdom. The winners drive improvement while posting financial results in the Supply Chain Metrics That Matter ahead of the peer group. 4) Governance.
According to Ben, who oversees Chainalytics’ DemandPlanning Intelligence Consortium , many companies take last year's forecast accuracy metric and simply add a few percentage points to establish the coming year’s goals. In his presentation, Ben identifies four key questions to answer : First, what does good look like?
Space managers may increase inventory levels by maximum facings, pricing managers would try to keep inventory levels low to avoid markdown, while inventory planners may focus on presentation or meeting an SLA. Functional areas continually react to decisions made by others that compromise their contribution to the plan. Why is that?
An example of social listening is the Lenovo Case Study presented at the 2015 Supply Chain Insights Global Summit. To become outside-in, the primary signal for demand becomes a market signal. The harmonization and synchronization of channel data to be used in forecasting, replenishment, and inventory planning. Demand Sensing.
Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. To meet the criteria for The Supply Chains to Admire for 2016, companies needed to score better than their peer group average for performance metrics, while driving a higher level of improvement than 2/3 of their industry peer group.
At the end of the presentation today, it happened. Rethinking Planning. This channel data is then used to drive planning. Demandplanning models are based on attribute logic. Alignment of Functional to Corporate Metrics. Embrace Test-and-Learn. The other company reported a serious decline in earnings.
We have found that supply chain metrics are gnarly and complicated.During In our program, cost avoidance, while desirable, does not count towards the metric. We needed to make the investment because our system was aging and we wanted to invest in a way that supported our demand-driven agenda. Our aim was to maintain a 3 to 3.5
Once the relationships are defined, you can incorporate weather-driven demand analytics across various time horizons–past, present, and future–to align with key retail functions. The impact weather has on consumer demand will vary by product, time of year, and location.
All these moves have added complexity to the demandplanning challenge. Against this backdrop, it is interesting that many companies still depend on spreadsheets for demandplanning and S&OP , as noted in the recent survey by APICS ( see Are Spreadsheets the Answer , SC Digest, September 2013 ).
Yesterday, I presented to 700 global attendees on an APICS webinar. In the presentation, I shared data on the evolution of supply chain planning and the results on user satisfaction. There is greater satisfaction with demandplanning than supply. The results confound me. Let me share the story. It is complex.
Source: “The Case for Less Silos, More Intelligence in Supply Chain Management,” webcast presentation by Adrian Gonzalez, Adelante SCM. Source: “The Case for Less Silos, More Intelligence in Supply Chain Management,” webcast presentation by Adrian Gonzalez, Adelante SCM. What has changed?
Work of Data Management Teams Groups targeting transactional master data Embracing disparate data IT Team Focus Integration Interoperability Planning Focus Demandplans focused on error reduction. Demandplans focused on understanding market flows and decreasing latency.
by Alexa Cheater As Gartner Research Director Matthew Spooner noted in his recent presentation at the Gartner Supply Chain Executive Conference, advanced sales and operations planning (S&OP) is like a hotel. Some specific industry examples, as presented by Spooner, where advanced S&OP has created value include: Industrial.
The last of these can be achieved by tracking the right inventory metrics, analysing the results, and making data-driven optimisations. So, what are the ‘right’ inventory metrics, and how do you calculate them? In this inventory metrics guide What are inventory metrics? What are KPIs for inventory?
See: ZURU Toys sidesteps 50% of potential markdowns ) Demandplanning: Leveraging accurate, real-time inventory data at the store and distribution center level, demandplanning teams can address out-of-stock (OOS) issues promptly, ensuring continuous sales flow.
In Figure 1, we show the aggregate trend of the chemical industry in an orbit chart format showing year-over-year results at the intersection of two metrics operating margin and inventory turns. I laughed at a recent presentation of Mondelez trying to achieve the cash-to-cash performance of Dell. Let’s take an example.
Bryan Ball highlighted the top disruptive supply chain trends including the increasing speed of business, talent and training, and measurement and metric alignment. A few notable examples: American Hotel Register revealed an aggressive attitude toward continuous improvement of its demand and supply planning system.
There is a process that is fast becoming a necessary and key component of both demandplanning and sales and operations planning. I have heard it described as “forecastability”and “demand curve analysis”, among other terms, but, here, I will call it a “DemandPlan Sanity Check” or DPSC for short.
I first heard the term only a few months ago during Zoltan Pekar’s presentation at our annual training and user conference, Kinexions. You can check out a recap of his presentation in my blog The Changing Role of IT in End-to-End Supply Chain Management or check out his presentation yourself on our YouTube channel.
By answering these questions, businesses can design a range of potential actions and responses, fortifying their business against future uncertainties in the supply chain planning and demandplanning process. Let’s start with the ubiquitous tool in sales and operations planning — Excel.
These should be tailored to the business’s specific needs but often include metrics such as on-time delivery, order accuracy, cost of delivery, customer satisfaction levels, and operational efficiency. Forecasting, which predicts future demand based on past and present data, is useful for achieving this equation.
It’s widely used because it presents forecast accuracy in an intuitive way. Forecast Value Add (FVA) FVA is a potent metric measuring whether the forecasting process adds value by improving accuracy. Demand sensing involves using real-time datasets to predict short-term demand more accurately.
Does being the best at a specific supply chain function — DemandPlanning, Supply Planning, Inventory Planning, Order Fulfillment and S&OP—define a best in class supply chain? Decisions are tradeoffs and need to be evaluated based on their impact and the weighting of key performance metrics.
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