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At the session, we discussed why companies have not made more progress on inventory management. The presentation is on slideshare.) In the case of Apparel and Automotive industries there are slight improvements, but they have shifted inventories to suppliers. Days of Inventory Pre and Post-Recession. There are many.
Most of the business networks were hollowed out by venture capitalists or purchased by opportunists. The big data architectures are often present in the current “AI offerings.” Yawn and walk on if the answer is i mproving demand error or reducing inventory levels. The business network market is in need of innovation.)
This year supply chain leaders will celebrate thirty years of progress in supply chain management; but we have not made progress on one of the funamentals: inventory management. I think that it is time for us to take the litmus test and ask the hard questions, “Have our practices impacted days of inventory? I want to believe.
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.
So should the purchasing process. . RFIs tend to work well for certain industries (like government) or for purchasing equipment and industrial assets, bu t t hey often fall short in helping supply chain teams select a new software vendor. There is valuable time and effort put in by both the supplier and the purchasing party.
When I finished my presentation on “past practices,” that I cannot call “best practices,” and outlined the methodology for the upcoming Supply Chain Index, a woman who had listened intently in the audience told me that I had thrown “cold water” on the audience. .” Companies are feeling pain.
Excess and obsolete inventory. When you don’t make what you sell and don’t sell what you make you create inventory. A well-executed sales and operations planning process can transform a company; allowing them to better control inventory and costs while meeting rapidly changing demand pictures. How about excellent planning?
Even though things seem to be going well (all of the meeting details are well-executed and the speaker is giving an energized presentation), the room is eerily quiet. By purchasing planning and transactional systems for a common vendor, they had one throat to choke and they were familiar with the architectural elements.
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. In this case, the metrics are operating margin and inventory turns.
How do they buy from you? How do they buy from you?” Spinnaker Management Group asked me to co-present on a demand-driven webinar with SanDisk. Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies.
Many of the case studies being presented at today’s conferences were born during the pandemic and the post-pandemic turbulence. The audience assumes that the presenting company is outperforming. Watching the presentations, I wonder how we became so laser-focused on such a limited view of risk.
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.”
With the purchase of i2 by JDA, and Logictools by IBM, manufacturing companies serious about network design started looking for a company, with a well-established community, that was more serious about network design. It could no longer be just about inventory levels. Instead, the design needed to be more encompassing.
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. This year, the program included presentations from Dollar General, Sleep Number, and Western Digital. Visual Artist Representation of the First Day of the Program.
<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. They center on how to make a good decision in the purchase of supply chain planning solutions. Most have purchased software, but are dependent on Excel spreadsheets.
Let me give you an example: Last week, I gave a presentation at a global supply chain team meeting of 175 professionals. This team is not buying the message. As I cleared my throat, and pushed my toes deep into my shoes, I bounded up the stairs to start the presentation. It was a large multinational company. I was wrong.
My schedule had me on a plane to Chicago at the time of the presentation. We rescheduled my flight and I quickly put together some slides for the presentation. (To I had successfully adapted to give a presentation on agility to 254 people. Much to my chagrin, I rubbed my eyes and checked my calendar. Defining Agility.
The Importance of Inventory Management. When it comes to inventory management, new trends are demonstrating that less is more. Having less inventory on-hand increases liquidation, allowing for a more agile response to shifting consumer trends. Getting the Right Tools for the Job.
The network senses, translates, and orchestrates market changes (buy- and sell-side markets) bidirectionally with near real-time data to align sell, deliver, make and sourcing organizations outside-in. The focus is on channel data: price; inventory positions; and policies. Customer-Centric Supply Chain Processes. The Building Blocks.
Gartner purchased the firm in 2010.) Driving Improvements in Supply Chain Excellence. He felt strongly that supply chain leaders knew how to drive supply chain excellence and needed a forum– or maybe two or three depending on the business model– to help them network and refine their approaches. I disagreed.
Reason #4 Making key decisions by modelling the supply chain in Excel. Reason #6 Not effectively managing inventory. One example that I’ve seen several times is around inventory targets. The result is a lower inventory level, but much higher expedited costs and reduced customer service. There can be multiple reasons.
So should the purchasing process. . RFIs tend to work well for certain industries (like government) or for purchasing equipment and industrial assets, bu t t hey often fall short in helping supply chain teams select a new software vendor. There is valuable time and effort put in by both the supplier and the purchasing party.
There is a very clear & present danger that exists on the revenue line and this can quickly become an expense problem if not managed appropriately. The focus for all fashion retailers is inventory. Below we will examine inventory + a new retail outlook for 2020. The number one priority is inventory for cash….
Nearly three years later, Comcast has moved from fragmented, Excel-based processes to an integrated, AI-powered planning platform. We used the people that we acquired from fourteen different regions and three different divisions… and we reduced inventory and spend by hundreds of millions of dollars.”
Inaccurate forecasts lead to either excess inventory or stockouts, causing increased costs, an abundance of stock that cannot be sold, lost sales and customer dissatisfaction. Efficient inventory turnover is crucial in the fast-paced high-tech industry. End-to-end supply chain visibility. Sustainability and circular supply chains.
Managing spare parts inventory has always been a delicate balancing actexcess inventory ties up capital, while shortages risk costly downtime and production delays. Thats why a growing number of organizations are turning to AI software for spare parts inventory management. What is Spare Parts Inventory Management?
The discussions are full of vacuous presentations and over-hyped promises. Or mine supplier shifts to build alternate buying plans. Sadly, I don’t feel that we are standing on the shoulders of giants. My concern is the growing knowledge gap between consultants, system integrators, and business leaders. Test and Learn.
Nowadays, procurement departments not only focus on the day-to-day buying operations but also search for the most efficient ways to go about them. Thorough analysis allows procurement professionals to surface, visualize, and presentpurchasing patterns, which are then evaluated by the stakeholders. From whom are we buying?
The list is presented in the order the responses were received in: 1) Andreas Wieland , Assistant Professor at Copenhagen Business School Successful supply chain management means that organizations are well-orchestrated in an end-to-end value network. These are three examples: Rule 3.1:
For example, if your Supply Chain work has reduced inventory turns or resulted in savings, you want to make sure your resume spells that out loud and clear. If you’re an inventory planner, how many SKUs did you manage? It is the quickest and simplest way to help an employer buy into you and answer the common interview question ‘so….
The presentations from the Summit are posted now on the Supply Chain Insights You Tube Channel. 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. Time horizon. The Role of the Budget in S&OP.
I suggested a POC as a way to “try before you buy” and mitigate the risks of choosing a supply chain planning solution that doesn’t fit your organization or live up to its marketing materials. For example, let’s say excess inventory is an issue, but you want to ensure whatever solution you choose doesn’t impact your service levels.
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. Inventory Turns. Not many companies have cracked this code.
This warehouse runs at a perfect optimum with fixed capital in the form of inventory balanced perfectly with sales and purchasing, and all the items perfectly distributed to the various storage areas of the warehouse. Operational excellence systems for the best use of the human resource.
Over time, I’ve been fortunate to work in groups where both men and women were well represented, and I’ve had excellent leaders who championed my career by giving me the freedom to chart my own path. The truth is women have long been underrepresented in supply chain leadership. Q&A with three inspiring women in supply chain.
The focus is on the platform; in each presentation, the company struggles to answer the question, “What problem do you solve? At the event, presentation after presentation focused on improving engines. Focus on improving operating margin, inventory turns, and revenue/employee simultaneously. in inventory value.
Businesses may struggle to balance inventory, increasing the likelihood of either overstocking, tying up valuable capital and incurring storage costs, or understocking. Double-Edged Sword of Inventory Management: Declining demand presents a significant dilemma for inventory management. scenarios of -20% and +20% change).
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. Buying these solutions is far more complicated than is represented in a simple four-box quadrant. The results confound me. Let me share the story.
Below I will outline how a vendor managed inventory model, in conjunction with reverse marketing, value analysis, and collaboration will achieve supply chain cost reductions. Vendor Managed Inventory Model for Supply Chain Cost Reductions. The distributor maintains the inventory plan. What is Reverse Marketing?
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. Other Suggestions.
Scott Abbate, Senior Vice President of the Center of Excellence at Logility, predicts, “Organizations that have embraced this strategic approach will enjoy incremental sales, market share growth, and best-in-class on-time, in-full service. The integration of AI+ will usher in a profound impact on demand planners.
GEON Performance Solutions purchases plastic pellets and add plastic compounders to make products of different strength, resilience, and flexibility. The simplified assumptions allow companies “to manage margins, supply chain costs, and inventories”, but “it does not enable them to manage enterprise costs, profit, and working capital.”
Do You Want Inventory Turnover Breakthrough? A ghost asset is any asset that meets two conditions: It’s no longer present, working or otherwise usable. It’s still being recorded in inventory and accounting systems. These non-assets linger in inventory and accounting systems, potentially becoming a liability for the business.
Many companies talk about Supply Chain Excellence, but most leaders struggle to define it. One supply chain leader, in a discussion last week, likened supply chain excellence to fitness. He felt that supply chain excellence was analogous. Our journey for supply chain excellence has changed and evolved over time.
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