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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. What Drives Value?
Thats why modern BI systems are quickly becoming the go-to solution for data-driven enterprises. They integrate, align, and activate data across the business to drive better, faster decisions unlike legacy reporting tools that can’t. But lets be clear: not all BI platforms are created equal. Why does that matter?
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.
End-to-end supply chain visibility, planning, and execution support software are critical in agile supply chain performance. The classical approach involves functional silos, sequential decisions, and Excel and people to render a plan executable. each with discrete plans generated typically in sequential batch runs.
Millions of shoppers, like my Dad, are not going back to their old habits because there are now faster and more convenient ways for buying daily household needs. It excels on a union of E-Commerce mobile apps and last-mile delivery innovations. I have to forecast my avocado sales, including seasonal patterns and promotional effects.
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. Engineers could sign up for hour-long blocks to use the new systems.
When it comes to running a company, when things break down executives have traditionally said “we need to improve our forecasting!” Would better forecasting accuracy be a good thing? Unfortunately, most companies cannot, and will never be able to, consistently rely on highly accurate forecasts. Absolutely!
Nick Lynch is the Global Excellence Manager at Shell Lubricants, a division of Shell Global. It is just not enough to do a software upgrade or slowly push continuous improvement projects. He did this first by implementing demand sensing from Terra Technology (now E2Open) eight years ago. Nick does this well. The reason?
Supply chain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. Technology integration: Leveraging digital tools to enhance visibility and decision-making.
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 shift from functional metrics to a balanced scorecard. Improved Forecast Value Added (FVA). Drives Value.
The systems–based on shipment and order data–were out of step with the market. With fixed models and hard-wired data feeds, teams could not adjust the planning systems to use consumption data or market indicators. Initially, the output was published to procurement to design strategic buying strategies. The reason?
When making discretionary purchases, I could look at my projection to make sure that if I made that purchase, I would have enough money in the bank, not only now, but at the end of the month when my mortgage and car loan came out. Then could I buy it? Planning systems, however, are not designed to allow you to ask ‘what if?’
At a time that marketplace offerings were super-hyped, I forecasted the doom of ten e-marketplace providers. I asked companies to “Navigate through the hype focusing on the feasibility of scope and technology.” At the time, the popular belief was that Enterprise Resource Planning (ERP) technologies would build multi-tier capabilities.
As an analyst in the supply chain market for 15 years, I have written many articles on best-of-breed technology companies purchased by a larger company. Today I am writing my take on the acquisition of Terra Technology by E2open. History of Terra Technology. Terra Technology is 15-years old.
Or agreement on the definition of supply chain excellence. As a result, functional excellence anchors action. The focus is on digitization—automating today’s processes—versus rethinking process excellence based on the art of the possible. Confluence of New Technologies. Today, we find ourselves in a hype cycle.
The second step is usually a large implementation of a technology project–Enterprise Resource Planning, Customer Relationship Planning or Analytics. The first evolution of technologies were built by best-of-breed solution vendors. This new solution was favored by the Information Technology (IT) organization.
Driving an excellent supply chain depends on how people are recruited and managed, processes, and the technology used. In the annual report where they report on their key performance indicators (KPIs), they don’t just report on core financial metrics and the NPS, they also have people metrics. The company recorded 1.9
Front and center in this revolution are the marriage of customer relationship management (CRM) software and capable e-commerce platforms like Shopify. Enter companies like DigitalSuits, a high-tech Shopify development and e-commerce agency that leverages technology and innovation to build end-to-end solutions.
It’s a holistic approach that blends strategic planning, streamlined processes, and the right technology to transform your warehouse into a well-oiled, profit-generating machine. Eight proven optimization strategies, combining technology, best practices, and sustainable solutions.
It was a story where people believed that functional excellence leads to supply chain superiority. Year after year, well intentioned people toiled against improving metrics that reduced, not improved, the effectiveness of the supply chain. These technologies are mature. I feel that many of these technologies are now legacy.
Introduction Gardner, (1954) and Huntzinger, (2007) define Purchase price variance (PPV) as a metric used to measure the effectiveness of cost-saving efforts by calculating the difference between the planned cost (standard pricing) allocated for purchasing activities and the actual cost incurred.
Top 3 Procurement Technologies to Embrace in 2025 Staying ahead of key procurement technology and advancements is essential for CPOs who want to improve spend cost reduction, drive strategic value, and navigate the increasingly complex procurement landscape.
Users are accustomed to building everything in Excel and manipulating the data as needed for their own particular use, typically using static reports or spreadsheets that are siloed in specific departmental needs. A key first step is to have buy-in at the highest level of the organization. Starting at the Top.
Businesses adopt online procurement systems to mitigate risks and to streamline requisitions, approvals, order placement, and spend management. However, with numerous e-procurement software vendors available, choosing the right tool can be overwhelming. Keep reading to learn: What is an online procurement system?
If you are going to be excellent at ecommerce fulfillment, you need to have great perpetual inventory capabilities. Select your technology partners based on reliability and flexibility for ecommerce capabilities and aggressively build a multi-tier available-to-promise (ATP) signal to enable drop shipments and merge in transit capabilities.
Forecasting projections is one of the toughest things to get right. Whether your brand is experiencing gradual sales or is in high-growth mode , we’ll walk you through some tips to improve your ability to forecast demand. Jump to section: What is demand forecasting? Jump to section: What is demand forecasting? Conclusion.
Q: Is it only inventory disrupting the agility resulting from inaccurate forecasts by S&OP? Common Platforms: The more that products are standardized and platforms are rationalized, the easier it is to design for agility. Q: You mention that Executive Buy-in is the biggest stumbling block. Is it S&OP?
The focus is on the role of supply chain finance in driving supply chain excellence. The design of the conference includes tours of several modern warehouses and centers of excellence. The supply chain is a complex non-linear system. The budget is not sufficient and is often a detrimental input for supply chain forecasting.
Brand loyalty is no longer the driver for consumer purchasing decisions. People simply want to purchase products from businesses which provide a more transparent and streamlined service, and who deliver on their customer promise, even if it means inflated prices to obtain it. Internal data alone won’t cut it.
But what if you could get a clear, birds-eye view of your core performance without investing in complex, expensive software? Running procurement and supply chain without metrics is like driving blindfolded. Control Costs: Track value beyond just the purchase price and manage inventory effectively. Our course breaks down TCO/TCS.
Manufactures are continuously faced with the challenge of forecasting how much (raw material) to purchase and how much (finished goods) to produce. To manage this delicate balance of demand and supply, manufacturers often use statistical forecasting techniques to predict future demand by looking at historical sales data.
At the time, I was fascinated how the most mature teams bucked the system. However, this mature team found the technology insufficient. Tight coupling of the supply chain forecast to the financial forecast will improve value. Demand latency is two-eight weeks delayed from consumption purchase to translate to an order.
To drive global scale, companies need to design the supply chain to buy globally and execute locally. The company leverages globally sourcing strategies to buy products at a lower cost and then deploys some unique process logic to drive mass customization for retailers. Performance on the Supply Chain Metrics That Matter.
However, my worldview is that the larger shifts are far more systemic requiring a call for action that is going largely unheard. Forecastability. Today, due to the increase in the long tail of the supply chain and changing customer dynamics, less than 50% of items are forecastable at an item level. Let me explain. Not so today.
The premise of the Christensen’s book is that when companies focus on current customer needs, they fail to adopt new technologies or business models that will meet the customer’s unstated or future needs. I think that IBM, HP, Microsoft, Oracle, SAP and Teradata are victims today in the information technology sector.
To truly harness the power of POS data, CPG manufacturers must implement systems and processes that translate data into strategic improvements in sales, marketing, and operations. Depending on the retailer, this can involve manually downloading files or using automated tools to pull the data into a centralized system.
Ask yourself, “Are your supply chain metrics bogging you down?” ” To manage a supply chain containing complex dependencies between teams, departments and partner companies across international boundaries requires a rich set of metrics. Functionally isolated metrics lead to sub-optimized supply chain performance.
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. These concepts, radically different from the traditional planning systems in the market, fly in the face of tradition.
However, this year promises a significant paradigm shift where traditional performance metrics are replaced by technology-driven frameworks, as recent breakthroughs with Generative AI in supply chains have demonstrated. Modern technology is the key ‘‘unlocker.’’ Enter our list of supply chain trends for 2024.
She works with supply chain leaders to take teams to higher levels of excellence and is an influencer with more than 340,000 followers on LinkedIn. Do you give suppliers accurate forecasts? How often do your purchase orders change? Lora is the Founder of Supply Chain Insights LLC. On average a P.O.
On one extreme, there is an argument that forecasts are always wrong, “Why do them at all?” ” At the other end of the continuum is the argument that “ Forecast error is the most important metric to improve.” I do believe in demand planning, but most companies overstate forecast improvements.
Available to Promise (ATP) Available to Promise (ATP) is a real-time inventory management metric that tells you how much of a product you can promise to customers without overcommitting. Supply chain managers use ATP to trigger reorders or adjust forecasts. Sales teams use ATP to give accurate delivery dates. Why is GMROI important?
I have heard a number of supply chain professionals proclaim that their companies should stop forecasting product demand due to poor forecast accuracy. However, what is often overlooked is that moving to a pull strategy does not eliminate the need for a forecast. It’s the old Push – Pull argument. Financial Impact.
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