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If you’re managing inventory with spreadsheets , you’re not alone—but you might be falling behind. While Excel has long been a go-to for planners, the landscape has changed. In this dynamic environment, inventory management powered by spreadsheets is no longer a viable strategy. But familiarity doesn’t equal effectiveness.
But change management is significantly more difficult when the technology deployed is used not just internally, but also by key trading partners. Molexs story is interesting because they excelled at overcoming these cultural issues. The most common form of trading partner collaboration is purchase order collaboration.
Sorting through this to make a decision on a new planning solution at this time is tough. .” I agree that the market is a bit of a mess. Each supply chain planning technology at the end of 2024, went through disruption–change in CEO, business model shift, layoffs, re-platforming and acquisitions. My advice? You are right.
As I press the pedal to the floor at 80 miles-per-hour, I munch Cheetos puffs (one of my favorites) and think about the session I just finished. At the session, we discussed why companies have not made more progress on inventory management. Days of Inventory Pre and Post-Recession. IT View of the Current State of Inventory.
The award, based on beating the industry peer group on rate of improvement on the key metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) while outperforming their peer group, is tough to achieve. Orbit Chart for L’Oréal at the Intersection of Inventory Turns and Operating Margin.
Even more impressive, lost sales due to stockouts can decrease by up to 65%, while inventory reductions of 20% to 50% are possible. This advanced analysis allows businesses to predict promotional lift with unprecedented accuracy, ensuring optimized production schedules and inventory positioning through sophisticated supply planning.
At the time, many business leaders did not know how to type and had no idea how to use a computer. Taxonomy of Outside-in Planning Based on the Art of the Possible To accomplish this goal, we need to discard the current crawl, walk, and run models and just jump. During the 1980s, I was on a management team for a large manufacturer.
Supply chain excellence is easier to say than to explain. The promise of a well-intended consultant just sounds sooooooo good. At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. Business leaders are action-oriented and competitive. The reason?
The companies with the strongest year-over-year performance (placing in the winner’s circle for six more times in ten years) are Apple, L’Oreal, Nike, Paccar, TJX, and TSMC. How Do You Define Excellence? In retrospect, I find that technology is an enabler, but only if we are clear on what defines supply chain excellence.
Reason #4 Making key decisions by modelling the supply chain in Excel. Reason #6 Not effectively managing inventory. I lost track of how many carrots we had and ended up buying more when we really didn’t need any. Unfortunately, all the same kinds of things can happen to your supply chain inventory. and it didn’t leak.
Aptean is orchestrating the Blue Yonder/E2open/Infor playbook of buying undervalued assets and milking the maintenance and Software-as-a-Service contracts with existing customers. The models are just too different.) Is it musical chairs? Or a Merry-Go-Round? I am not sure, but it does not feel good. Here, I give my take. New Players.
Observations on What It Takes In the Mea Culpa post, I wrote that I used to believe that excellence in S&OP was a ratio of 60/30/10. (60% P&G did not appreciate the work Gilette accomplished on form and function of inventory and using market signals. Sounds easy, right? Leadership and S&OP? An analyst never implements.
Background The Council of Supply Chain Resilience met for the first time this month. Today, I speak at the North American Manufacturing Association, Manufacturing Leadership Conference, in Nashville on the use of data to improve supply chain resilience. Here I share some insights from my research. The reason? We are not clear on definition.
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. I like the use of growth, margin, inventory turns, Return on Invested Capital, customer service and ESG metrics. Drives Value.
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.” If S&OP efforts were that effective, don’t you think that we would have made more progress against inventory levels, margin, and growth?
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence.
import volumes still climbing (see Figure 1), limited processing capacity at key West Coast ports and the International Longshore and Warehouse Union (ILWU) contract expiring next summer, importers will be scrambling to maintain the inventory they need to support the demand increase. Here’s what to look for in 2022.
Commerce is global and regional at the same time, the world is getting smaller and more interconnected, and Consumer Packaged Goods (CPG) manufacturers operate in this build-anywhere and sell-anywhere market. The classical approach involves functional silos, sequential decisions, and Excel and people to render a plan executable.
Inventory is the lifeblood of any manufacturing business. By leveraging analytics and key performance indicators (KPIs), manufacturers can optimize inventory, reduce waste, and boost profitability. Tracking inventory flow and performance across your supply chain is a must. Why is Average Time to Sell important?
Esther is the Chief Revenue Officer at Flowspace , an ecommerce fulfillment platform that helps brands meet their customers’ post-purchase expectations. Flowspace is an ecommerce fulfillment platform that helps brands meet their customers’ post-purchase expectations. About Esther Kestenbaum Prozan.
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. Nick is a master of influence skills and building cross-functional, horizontal processes. In this post we share our take on his journey.
Tom, the colorful warehouse manager, constantly heckled Frank for the increasing inventory levels while Ed, the quiet material/logistics manager, constantly questioned if there was a better way. The changeover times for the CM Bartlelts was 5X more prolonged than the more agile IM machines. Sharing My Experience. The year was 1982.
Understanding how your Procurement and Supply Chain KPIs are performing isn’t just a nice-to-have; it’s essential for survival and growth. Is inventory bloating your costs? Identify Bottlenecks & Opportunities: Quickly spot areas that are underperforming and need attention or areas where you’re excelling.
In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times. An efficient procurement process optimizes vendor selection and purchasing decisions to maintain cost-effective inventory levels. Streamlined operations: Ensuring smooth, uninterrupted flow from suppliers to customers.
At that time, manufacturers talked about customer-centric supply chains, but were afraid to aggressively adopt ecommerce strategies. Get Good at Having a Real-time Perpetual Inventory Signal. Foundational for ecommerce is a real-time perpetual inventory (PI) signal. No matter where inventory is, put it to work.
As time goes on, these high energies dissipate. 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. ” Incrementalism. I am tired.
Unloading times are double and costs are triple. At the time, a functionally encased view of visibility was sufficient. The secondary problem is the lack of definition of process requirements and a buying team that cannot see past simple MRP/MRP II/DDMRP requirements. Supply chain shortages abound. Reflection. The reason?
This blog explores procurement vs supply chain strategy and looks at how aligning the two leads to operational excellence. The procurement team is responsible for ensuring that the inputs to a business (whether goods or services) are of the right quality, delivered on time, and aligned with strategic goals. The problem?
Warehouse optimization isn’t just a buzzword; it’s a lifeline for businesses seeking to thrive in the demanding world of modern commerce. Warehouse optimization isn’t just a buzzword; it’s a lifeline for businesses seeking to thrive in the demanding world of modern commerce. Ready to get started?
I remember the first time that I met the founders, Don and Toby. ” And from time to time, when we were behind deadline, and teasing each other about the looming weekly post, we would throw our llamas from cubicle to cubicle. It could no longer be just about inventory levels. The conference was low-key.
Excess inventory – it’s taking up your warehouse space, tying up working capital, and limiting your planning team’s range of motion. It’s time to Marie Kondo your supply chain by eliminating excess inventory and learning how to avoid it in the first place. Let’s talk about: What Excess Inventory Is.
We were discussing the results of the planning benchmarking work that we have just finished, and I was sharing some insights on inventory management when one of the panelists emphatically stated, “Inventory is a waste to manage. We feel so strongly about this that we do not have an inventory planning role.”
So, the parking spots are getting more and more occupied with drop trailers, meaning lot capacity shrinks while finding the trailer with the highest-priority inventory becomes even harder. For various reasons, many drivers show up unexpectedly and at the same time. Bottom line: yards are hard. But these are not intractable problems.
During this time, I worked for Manugistics. The implementations were longer, the purchase costs were higher, and the functionality was less robust and lacking flexibility. During this period of time, I tried to highlight the gap in my writing. It makes no sense to me. In this post, I want to make my argument and stir a debate.
Pricing Structure Affordable pricing, with annual access to purchased courses and practical resources through Pro Plan. This learning platform covers every angle of supply chain management, from demand planning and inventory management to supplier relationship management, procurement, and logistics.
Despite two decades of advancement in supply chain technologies, companies are struggling to gain balance at the intersection of operating margin, inventory turns and case fulfillment. After three years of research, I have just refined the methodology to start to pull the trends. ” —Translation from the Greek by Ludwig Edelstein.
<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. I think that it is time for some straight talk. They center on how to make a good decision in the purchase of supply chain planning solutions. Get a cup of coffee.
Inventory, in this time of uncertainty, is the organization’s most important buffer to protect against variability. However, organizations are not good at managing inventory. In times of uncertainty, cash is king. In times of growth, when companies are funding inventory builds, cash is needed.
Reason #4 Making key decisions by modelling the supply chain in Excel. Reason #6 Not effectively managing inventory. Just focus on geography and forget about anything else. One example that I’ve seen several times is around inventory targets. Reason #5 Not having a supply chain risk management process. Don’t care.
Supply chain planning is not just for the big boys. At Dow, Mr. Baker had Purchasing experience in raw materials, and logistics for their plastics supply chain. S&OP is the key process in effectively balancing supply – what can be made – with demand – what customers want to buy.
Assess and Optimize Inventory Management The first step to efficient delivery is to assess your inventory management. By adopting an automated inventory tracking system, this process can be streamlined, saving time and effort on manual stock management tasks.
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). In 2018, Rockwell Automation won the Supply Chains to Admire Award. Meet Ernest.
We conclude this two part series about manufacturing operations excellence by consultant Chuck Intrieri, by outlaying why manufacturers should focus on a critical component that will help sustain manufacturing operations excellence for years to come. What is Driving Sustainable Manufacturing Operations Excellence? Work centers?
High e-commerce shopping rates combined with construction delays are causing a strain in the supply of new warehouse space, especially as companies shift their inventory management strategies from just- in-time (JIT) inventory management to larger safety stocks for better responsiveness. ports to get backlogged.
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