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Historically, supplychain leaders managed supplychains in a world of abundance. There are many factors: war, supply shortages, climate change, labor (knowledge and availability), and shifts in governmental regulation. The waste included: Negative Forecast Value Added (FVA) in demandplanning.
Machine learning (ML)a specialized field within artificial intelligence (AI)is revolutionizing demandplanning and supplychain management. According to McKinsey , organizations implementing AI-driven demand forecasting solutions can reduce forecast errors by 30% to 50%.
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supplychain excellence. In my post Mea Culpa, I reference my work with the Gartner SupplyChain Hierarchy of Metrics. They do not excel in planning or forecasting.
Procurement and supplychain management are often used interchangeably—but in practice, the lines between them can blur in ways that create real friction. In this blog, we cover the key differences between procurement and supplychain management, and explain where the biggest disconnects typically occur.
If “the forecast is always wrong,” is improving forecast accuracy even the solution to our demandplanning woes? Because moving from guessing from the gut to statistical forecasting reduces bias and increases objectivity, based on years of research by statisticians codified into forecasting software.
The Connected SupplyChain. Drip Digital SupplyChain. Autonomous SupplyChainPlanning. Self-Healing SupplyChains. Touchless SupplyChains. The issue is that when companies optimize functional metrics, they throw the supplychain out of balance and sub-optimize value.
The Covid-19 pandemic tested the global supplychain. Like riding a bumpy road, the supplychain leader is riding the ups and downs of changing market conditions facing greater variability day-to-day. Here, based on interviews with supplychain leaders, I share lessons learned. It will not be over soon.
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 demandplanningsoftware. What is demandplanningsoftware?
“May you live in interesting times,” widely attributed as a Chinese curse, some claim this as a blessing; whichever side you take, this is exactly what’s happening in the supplychain world since 2020, and it looks like we will be living with this blessing/curse for a while longer. Emerging Themes for SupplyChainPlanning.
Do Invest in Distributor Capability Building : Provide training, digital tools, and performance incentives. Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Regular reviews and joint business planning foster accountability and trust.
Life for the supplychain leader is more complex. We are living in a world of rich supplychain case studies. Each day, the Wall Street Journal features a supplychain failure as front-page news. Traditional processes accelerate the bullwhip impact leaving leaders chained and forced into reactive behavior.
Michael Jacobs, Senior Vice President SupplyChain, Ferguson. Mr. Jacobs is the senior vice president for supplychain at Ferguson. While nominally a distributor, “supplychain management is our core competency. In particular, Ferguson’s supplychain is built for speed and to provide high service levels.
ARC Advisory Group has been covering the SupplyChainPlanning ( SCP ) market for 17 years. The pandemic brought home the need for companies to run agile and resilient supplychains. Supplychain agility reflects a company’s ability to respond quickly to surges or plummeting demand.
SCB Feature Report From DPW: What’s Next for AI in SupplyChain? That’s because the promise of artificial intelligence for supplychain operations is huge. It could do more to accelerate the journey of supplychain operations from the backroom to the boardroom than any other change. trillion to U.S.
Anyone who has done demandplanning knows it is extremely complex, with forecasting challenges and rapidly shifting consumer demand, often exacerbated by seasonality, new product introductions, promotions, and myriad causal factors (e.g. The forecast generated by these algorithms degrades as the demand patterns evolve over time.
When I started my business in 2012, I frequently wrote about the future using the moniker of SupplyChain 2020. We had just recovered from a recession, and my goal was to help supplychain leaders create a better supplychain by the end of the decade. At that time, SupplyChain 2020 seemed so far away.
Supplychain management has been in the news. But the intricacies of supplychain management are beyond the grasp of most. One key solution used to help manage complex supplychains is supplychainplanning (SCP). Supplychainplanning is a complex solution.
This article is a shortened version of themes & topics discussed in our newest DemandPlanning Core White Paper. Demandplanning has long been a requisite of supplychain management, but in a modern, high-speed environment, it’s become something more: a strategic lever for agility, and competitive advantage.
Many of the world’s largest companies have committed to reaching net zero by 2050, triggering a ripple effect throughout global supplychains. For most CPG brands, indirect emissions — those that occur across the supplychain — represent the majority of their carbon footprint. Retailers are following suit.
Descriptive, predictive and prescriptive analytics should be combined to optimize your demandplanning processes. Better forecasting and demandplanning processes, which in the past had been beset by low accuracy and poor adoption, were a priority. The A nalytics to B oost your DemandPlanning.
A proof of concept (POC) is an increasingly common method to select the best supplychainsoftware vendor for your company, yet many supplychain practitioners still lean on the traditional RFI (request for information) tool. Software selection is risky. 6 Focus on the wrong metric.
While we will recover quickly in retail (moving from painful shortages to a glut of inventory), the chemical industry–sitting four and five layers back in the supplychain–takes longer to recover. The value chain supporting all industries is sick, requiring a leadership step-change. Time For Action. ” [link].
For businesses of all sizes, the digital transformation of supplychainplanning became the most important initiative. . Considering this surge in digital transformation and the changing needs of 2021, here are some insights and tips for embarking on SupplyChain Digital Transformation projects.
That’s why staying on top of the latest supplychainplanning trends is so important – they can make all the difference when it comes to staying competitive, reducing costs, and meeting your customers’ needs. Here are some highlights from these trends in 2023 and implications on supplychainplanning.
More and more businesses are hopping on the outsourcing bus and letting the experts take the wheel to drive supplychainplanning processes. Several years ago ToolsGroup pioneered business process outsourcing (BPO) as an alternative to in-house supplychainplanning (SCP). versus $4.84 per $1000 of revenue).
Let me start by saying that t he process is not a panacea to solve all supplychain ills. Clear operating strategy and definition of supplychain excellence across plan, source, make and deliver. There is a clear definition of the role of the supplychain in the delivery of value. One SupplyChain.
We asked the IT, finance and supplychain teams to self-assess their views of organizational alignment. The supplychain view is listed in figure 1. For the supplychain team, the largest area of misalignment is between the supplychain and the sales group. Supplychains are not agile enough.
In todays rapidly shifting business landscape, supplychain evolution has become essential. The goalposts are constantly moving due to factors like global disruptions, technological advancements, and evolving customer demands. Use tools to automate root cause analysis and reduce dependency on manual reporting.
Top 3 Demand Forecasting Mistakes —How To Avoid Them with DemandplanningsoftwareDemand forecasting is a critical facet of successful business operations, acting as the helm guiding companies through the rocks hiding beneath the water of market demands. Neglecting these can distort your forecast.
Note: Today’s post is part of our “ Editor’s Choice ” series where we highlight recent posts published by our sponsors that provide supplychain insights and advice. This article is from Michael Balint at Solvoyo and looks at the fresh produce supplychain. To read the article, click HERE.
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. SupplyChain Planners Analogous to Secretarial Pools? The plant was 24 acres under one roof.
“How do I know if I am ready for cool technologies? Especially demand sensing and shaping?” ” A Demand Planner for a Large Multinational Pharmaceutical Company. I also continued to work on the manuscript for the book Metrics That Matter to publish in the fall of 2014. Especially demand sensing?”
Will your ERP accommodate your complex supplychainplanning requirements? Comparing a supplychainplanning platform against an ERP system that offers supplychain management capabilities is a challenge. Logility is Fit for Purpose and Addresses SupplyChain Needs Head On.
In the last six months, in my travels, I have presented to supplychain teams in China, Belgium, France, Germany, Peru, Mexico, Netherlands, South Africa, Singapore, and the United Kingdom. I strongly feel that if I am going to cover the global supplychain that I need to experience it. A Personal Reflection.
Over the course of the last two years, we at SupplyChain Insight s have worked on a methodology to gauge supplychain improvement. We named it the SupplyChain Index. We have found that supplychainmetrics are gnarly and complicated.During Background on the SupplyChain Index.
Teaming up with ToolsGroup, the Italian frozen seafood company chooses AI to advance its supplychain processes and guarantee a superior consumer experience. D.I.MAR holds itself to the highest standard when it comes to the quality of our products,” said Alessandro Evandri, SupplyChain Manager. “We
When it comes to implementing supplychainplanning and operations solutions, success relies heavily upon an organization’s ability to identify and document its desired value measures and outcomes, and to align those with its solutions provider. 1 Co-develop a business case with vendors. 3 Align on goals and KPIs.
While most consultants and technologists want to sell technology, and are eager to slap in a new piece of software, my caution is to slow down and better understand root issues before having a technology discussion. Time For A SupplyChain Check-Up? Analyze Past Results in Customer Service.
This is my 440th blog post and the tenth anniversary SupplyChain Shaman. It is for this reason, that I use COV analysis to type logical supplychain flows. Companies do not have one supplychain, they have many. Most companies have a high volume and predictable supplychain (COV of less than.5),
Still, it can be just as disruptive to supplychain performance. Fleet management is a long game — budget cycles, replacement planning, technology roadmaps. Without experienced managers in place, truck availability drops, repairs are delayed, and cost control becomes difficult. Disruptions in decision-making.
Understanding how your Procurement and SupplyChain KPIs are performing isn’t just a nice-to-have; it’s essential for survival and growth. But what if you could get a clear, birds-eye view of your core performance without investing in complex, expensive software? Check out SCMDOJO’s SupplyChain KPIs Dashboard!
Supplychain reports offer a comprehensive view of your entire supplychain operation. They are powerful tools for businesses to identify areas for improvement, optimize processes, and gain a competitive edge. What are SupplyChain Reports?
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.
Over the years, working for and with numerous manufacturing companies, I’ve seen many supplychain practices that cost companies money. Reason #3 Not having end-to-end supplychain visibility. Reason #4 Making key decisions by modelling the supplychain in Excel. by John Westerveld. Submit a request.
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