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Today, supply chain excellence matters more than ever. Globally ten percent of jobs are in manufacturing, while 37% are associated with supply chain management. The discipline, first defined in 1982, includes source, make, deliver, and planning functions. Kinaxis Purchase of Rubikloud. Elemica Purchase by Eurazeo.
Supply chain excellence is easier to say than to explain. Keith led the work to move P&G from a regional to a global manufacturer opening up the Warsaw center of planning excellence and outsourcing IT to HP. Keith was an undisputed leader in building talent to drive manufacturingexcellence. The reason?
In my work on the Supply Chain Index , I see that companies I recognize as doing networkdesign well are rising faster on the list of the Supply Chain Index work. The networkdesign technologies have changed a lot in the last decade. (I These tools allow us to look at sell, source, make, and deliver together.
Today, I speak at the North American Manufacturing Association, Manufacturing Leadership Conference, in Nashville on the use of data to improve supply chain resilience. Interestingly, in Q3 2023, 38% of manufacturers, distributors and retailers missed their target for revenue guidance for the quarter. The result was restatement.
I know that your primary focus is procurement. The issues are largely rooted in politics and the lack of clarity on supply chain excellence. Or planned orders to purchase orders?) I observed companies use the beer game as an educational tool or a social networking activity. Go to the source. I don’t know.
Primed for transactional efficiency, these legacy architectures based on relational databases drive order-to-cash and procure-to-pay efficiencies. Like Linus clinging to his blanket, supply chain teams make most of their decisions on Excel spreadsheets. Or a unified data model across source, make, and deliver for planning?
Dr. Alexandros Skandalakis – the Director Global Manufacturing Capacity, Strategic Assets and Capital Expenditures at Philip Morris Products S.A. This was done at a stock keeping unit level and for the entire manufacturing supply chain. Once the analysis was done for Year One set up, Year Two was pretty much the same.
The market for networkdesign tools was growing at a moderate rate, and most of the market had invested in technologies from either i2 Technologies (then termed i2 Strategist) or Logictools. Today, supply chain design has become a process all to its own. Instead, it needed to be steps of continuous designs. The reason?
It was a story where people believed that functional excellence leads to supply chain superiority. The example that I give in the first post is the focus of manufacturing strategies to drive strong results to improve Return on Assets (ROA) that have actually caused a deterioration in operating margin. You got it! A Case Study.
In the supply chain, variability and volatility come from many sources. The best way to start the design of an agile supply chain is to look at the sources of variability and market volatility that your supply chain encountered in the prior year. Ten years ago, the supply chain had two buffers: manufacturing and inventory.
The company sources goods from 34,000 suppliers out of 30 nations. Driving an excellent supply chain depends on how people are recruited and managed, processes, and the technology used. The company uses a networkdesign tool from Coupa. 22,000 containers move annually through 53 ports. Getting the Most out of People.
Concurrent macro forces–material shortages, war, shifts in consumer buying patterns, logistics constraints, inflation/recession, and climate change– are reshaping today’s reality necessitating the need for a supply chain reset button. We have heard that there is a focus on near-shoring, reshoring, and local manufacturing.
Supply Chain NetworkDesign Along with the design of supply chain strategy, the design of the supply chain itself, especially the part dealing with outbound distribution from plants or warehouses, is instrumental in the success or failure of businesses.
On Wednesday morning, when I finished speaking at the Foundation for Strategic Sourcing in Fort Lauderdale, an executive from J&J pulled me aside and said, “Our strengths, are now our vulnerabilities.” Strategy to NetworkDesign. A strong center of excellence tied to networkdesign is essential.
Notice how the water turns from blue to brown in Figure 3 with the lack of demand translation capabilities within the enterprise for manufacturing and logistics. Orchestration enables companies to effectively manage trade-offs between source, make, deliver and sell.) The process mistakes include: Mistake #1. Mistake #3. My challenge?
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 number one question that I am asked today by manufacturers across all industries is “How can I improve customer service?” Background.
Returning containers is an ongoing issue resulting in some manufacturers investigating a return to break-bulk shipping (container free). Value networks do not interoperate and the business leader trying to track shipments must manually sync multiple data sources to get to answers. Break your dependency on Excel Spreadsheets.
He is very passionate about developments in the Supply Chain arena and is always seeking excellence in his drive for efficiency & innovation in Supply Chain operations” – a quality that is very relevant to face up to the many Supply Chain challenges in our path! “I My passion for Logistics and Supply Chain is founded from.
The third issue is the lack of understanding that global processes–to maximize the economies of scale in transportation and material buying–need strong governance. This allows shared services of procurement and transportation to function smoothly to achieve the economies of scale. 4) Plan By Design.
I also worked in manufacturing during the period of 1978-1992 trying to plan demand. Most demand planning happens in Excel Ghettos not in the expensive technologies implemented in 90% of manufacturing companies. This is Planning by Design. Demand latency is the time from channel purchase to translation into an order.
The definition: an adaptive network focused on a well-defined value-based outcomes. 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. Buffer Design.
I am a manufacturing gal by training. While traditional supply chain processes evolved from functional excellence definitions for source, make and deliver from the inside-out; to make the digital pivot and become more market-driven, companies need to define new supply chain processes outside-in. 1) Supplier Networks.
The supply chain field offers a wealth of opportunities for women, making it an excellent career choice for many reasons: 1. This translates to a plethora of job opportunities across various sectors, from manufacturing and retail to healthcare and technology. Maryna has: 5 years of experience in procurement training and consulting.
Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” Networkdesign concepts are gradually gaining acceptance, but too few design their networks. These are my thoughts. Any misconceptions to add?
Sears Manufacturing Co., a Traverse City, Michigan based innovator of supply chain networkdesign software. This annual award honors IT companies that support and enable logistics excellence. million and purchased Starboard Solutions Corp., a supply chain network optimization solution for approximately $6.5
Concurrent macro forces–material shortages, war, shifts in consumer buying patterns, logistics constraints, inflation/recession, and climate change– are reshaping today’s reality necessitating the need for a supply chain reset button. We have heard that there is a focus on near-shoring, reshoring, and local manufacturing.
Developed a process of excellence in supply chain collaboration. Implemented cross-docking in its supply network to enable inventory reductions. Supply Chain NetworkDesign. Development of analytical and networkdesign skills within the company’s supply chain teams.
Our supply chain involves a contract manufacturer, a third-party testing facility, warehouses to store inventory and a freighting company. For example, if my contract manufacturer is late with an order it can cause me to incur excess costs with the freighting and warehousing companies, respectively.
Each are good at localized planning within a focused area of demand, supply, networkdesign, transportation planning, material sourcing or finite scheduling. The greatest value happens when companies can link across source, make and deliver. Few implementations of planning connect to procurement and transportation.
Expertise: Sourcing, Supply Chain Analysis, Logistics & Transportation, Logistics Management Consulting, Freight (Maritime, Land, or Air), Logistics Technology Solutions. Francine has been an Interim (project) manager and senior business analyst with a track record in Operational Excellence, Process Design and Data Analysis.
Rethink NetworkDesign. For companies seeking to survive and excel in the current 'retail apocalypse' , understanding the right technologies to employ in their supply chain operations is critical. Consumers are no longer bound by loyalty or geographic necessity in their purchase decisions. Rethink NetworkDesign.
As the largest home improvement retailer in the United States, Home Depot is an excellent example of a business powered by an evolving global supply chain. Digital and mobile commerce have transformed how humankind buys. Not to mention, the plethora of options and flexibility to make purchases, anytime anywhere. Sounds simple?
Unless you are customising your manufacturing for each product, we’ll assume the production cost is the same each time the same product is produced. The tools for determining Cost To Serve include standard spreadsheet applications, such as MS Excel, and networkdesign modeling software. The reason for this is simple.
Powered by data analytics and advanced technologies, every stage of the supply chain can be critically analyzed, starting from procurement to distribution to identify and prioritize improvement opportunities. This opens up avenues to save procurement, transportation, inventory, and warehousing costs.
The transformation of the Target supply chain has allowed the company to: Place their stores at the center of a modern networkdesign to deliver an unmatched combination of convenient fulfillment options. Target's success shows the importance of going beyond "adequate" supply chain management and seeking to excel at it.
As the largest home improvement retailer in the United States, Home Depot is an excellent example of a business powered by an evolving global supply chain. Digital and mobile commerce have transformed how humankind buys. Not to mention, the plethora of options and flexibility to make purchases, anytime anywhere. Sounds simple?
As the largest home improvement retailer in the United States, Home Depot is an excellent example of a business powered by an evolving global supply chain. Digital and mobile commerce have transformed how humankind buys. Not to mention, the plethora of options and flexibility to make purchases, anytime anywhere. Sounds simple?
Scenario 2 – Buy more at once. You jump in the car, drive to the store, park the car, go into the store, spend a bit longer in the store this time, as you buy sugar, flour, rice, milk, and a dozen other things. Manufacturing lead times. The activities in both scenarios were the same weren’t they?
Of course, there is no quick and easy way to curb increases in the cost of energy, but now is an excellent time to start thinking about practical ways to reduce energy usage across your business. It also offers benefits regardless of whether you are already using energy-efficient light sources.
Supply Chain NetworkDesign. Along with the design of supply chain strategy, the design of the supply chain itself, especially the part which deals with outbound distribution from plants or warehouses, is instrumental in the success or failure of businesses. SEE ALSO: Supply Chain Strategy Development.
Medical Device Manufacturer. In the last five years, while the physician is still important, the buying decisions transitioned from the supplier to the care provider. The most common reporting relationship in the supplier organization is to a leader of supply (focus on logistics, distribution, materials sourcing and customer service).
I define supply chain excellence as year-over-year performance better than the peer group on this balanced scorecard. 06/2020 Kinaxis buys Rubikloud for 60M$. Other forms of decision support include revenue management, trade promotion management, cost-to-serve, and networkdesign. They did it.
Of course, there is no quick and easy way to curb increases in the cost of energy and labour, but now is an excellent time to start thinking about practical ways to reduce energy usage and increase labour productivity and efficiency. It also offers benefits regardless of whether you are already using energy-efficient light sources.
In Agrosciences is the customer the distributor of seed/additives, the farmer or the downstream purchaser of food products? And, how do the customer-centric supply chain strategies evolve based on promotion strategies and digital path to purchase? Less than 10% of manufacturing companies are effectively using cost-to-serve analysis.
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