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For example, if I improve the cost structure in transportation, procurement, manufacturing and sales independently, what decision support framework decides the right trade-offs? I observe that organizations are unclear on outcomes and the definition of supply chain excellence. You are right. The reason? What should we do?
However, this approach ignores real purchasing behavior, such as customers buying complete sets of four tires. Probabilistic demand forecasting, in contrast, provides a full probability distribution, revealing actual purchasing patterns and enabling inventory planners to align stock levels with demand realities. The result?
In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. Supply chain was defined in 1982 as interoperability between source, make and deliver. Ask a procurement or transportation professional if they have a good demand signal and expect a laugh.
In this research, 81% of brand owners and contract manufacturers primarily depend on communication through email and spreadsheets. Approximately 32% of manufacturing, across industries, is outsourced. Purchase order data, while not as important, has the smallest gap. My research is focused on driving change in thinking.
” Followed by “How are you organized, and what defines functional excellence? And, how do you tie functional excellence to corporate value?” Companies became less clear on the definition of supply chain excellence and how to implement decision support technologies. This gap grew over the last decade.
Supply chain excellence is easier to say than to explain. In this area of research, I find that companies are like dogs chasing cars. 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. The reason? Discontinued in 2011.
Most of the business networks were hollowed out by venture capitalists or purchased by opportunists. On December 5th, Supply Chain Insights is hosting a small event at Georgia Tech to share the results of a two-year research effort to connect financial metrics by industry to supply chain performance to drive value.
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. I am currently doing research on inventory management. The result was restatement. My conclusion?
My definition of a network is the bi-directional information exchange of manufacturing, procurement, quality, and transportation signals across multiple tiers of trading partners in a many-to-many trading partner information exchange with minimal latency. Electronic Data Interchange (EDI) does not meet this definition.
Linkedin Comment Donald Cavin Data Warehousing Consultant at Ohio State University Comprehensive Cancer Center-James Cancer Hospital & Solove Research Institute. In 2004, I joined AMR Research, a Boston Analyst firm. Too few companies have a holistic approach to embrace the plan, make, source, and deliver together.
Each executive has a different perspective on the definition of supply chain excellence, but they are never discussed and aligned. His organization purchased an advanced planning technology from well-known best of breed provider, and the implementation should have been successful, but it was not. What Is The Ring of Fire?
During the 1980s, I was on a management team for a large manufacturer. 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. Lack of executive buy-in.
While consultants know the answers (or believe they do), I believe my goal as a research analyst is to unearth new questions that should be asked (and answered together openly in the supply chain community) to improve value. Contract Manufacturing Signal Latency. days to receive a purchase order confirmation.
This landed me in front of the Vendor Review Board at Gartner to defend my research. <This It was funded by 50 large consumer products manufacturing companies (CPG). In the dawn of e-commerce, conservative manufacturers, anteed up $240 million in four months. <This is an experience that I would never care to repeat.>
So, I smile, catch my dinner partner’s eye and ask, “In our prior conversations, you mentioned the lack of clarity on the definition of supply chain excellence in your current deployments and how this is a barrier to implementing supply chain planning properly. “ Reflection. Supply Chain Reporting Structures. Next Steps?
The research that I have conducted has enabled me to look at this holistically. When I left AMR Research I invested over 400K in building a database of supply chain financial ratios to correlate supply chain results. After three years of research, I have just refined the methodology to start to pull the trends. I am an old gal.
. ” My response, “Sorry Ryan, the research does not support that increased digitalization brought unprecedented levels of connectivity. similarly, over 95% of manufacturers invested and implemented supply chain planning, but their primary tool today is Excel. I am researcher. ” Does the Dog Hunt?
With the global market expansion and deepening supply chain complexity, the roles of procurement leaders have evolved from tactical to strategic. 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. From whom are we buying?
Frank, the line manager for manufacturing, dominated the meetings. Ed argued that instead of buying new packaging equipment that we should work with R&D to have a base flavor and add the color and flavoring at the head of the machine. Strong manufacturing organizations do not make the most effective manufacturers.
“The idea of the value chain is based on the process view of organizations, the idea of seeing a manufacturing (or service) organisation as a system, made up of subsystems each with inputs, transformation processes and outputs. ” Institute for Manufacturing, 2013. __. E2open last week announced the purchase of Serus.
Consumers constantly change the mix preferences in purchases. Somedays, the focus is on steaks or ribs and the next on the purchase of ground or cubed meat. The manufacturer pays maintenance for the planning software but stops contact with Company A. Here are my recommendations: Buy Software Like You Manage A Relationship.
This team is not buying the message. The team was organized around the functional silos of source, make and deliver. So much so, that three years ago, I founded a research company to focus on understanding supply chain excellence. For a couple of hours I looked around the room and saw glazed eyes. I was wrong.
It is one of the reasons that I went from working at AMR Research to being a partner at the Altimeter Group. They excel in the four Ps of marketing. In contrast, a market-driven organization connects bidirectionally market-to-market to orchestrate the signals to shape demand and mitigate risk (buy-side to sell-side and back).
ARC has done research and writing on supply chain collaboration networks. A company buys these solutions to optimize their business. Rich Sherman – a Senior Fellow in TCS’s Supply Chain Center of Excellence – points out that many companies are building control towers to better manage their supply chains.
The research is the fun part of the process. He is responsible for manufacturing, procurement, supply chain planning, logistics, quality, social responsibility and final product engineering. Which metrics do you think matter to supply chain excellence? They all need to be approved by corporate communications departments.
Navigating the intricate web of modern manufacturing can feel like participating in an elaborate puzzle—complex, with lots of moving parts and a grand strategy that need to fit into a complete picture of the business. For midsize manufacturers, finding growth in a competitive landscape is a delicate balance between strategy and execution.
I am a big believer in procurement getting involved as early as possible in new product development based on all the market knowledge available. The worst-case scenario is product engineering developing a new product, selecting a supplier and then telling procurement to get on with negotiation. How often do your purchase orders change?
At the end of a long day of a strategy session on supply chain excellence with a client, I needed to fill up some time in an agenda. This large food manufacturer used a popular technology to forecast monthly using orders as an input. They had never been in the same room to discuss demand holistically from sales teams to procurement.
This is the year that AI stops being just a buzzword and begins to evolve into an operational imperative for manufacturers, retail and supply chain companies. Like any engine, it cant run without fuel, and not just any type of energy source is going to cut it. billion by 2030, according to Grand View Research.
At that time, manufacturers talked about customer-centric supply chains, but were afraid to aggressively adopt ecommerce strategies. Manufacturers, today, are aggressively pursuing e-commerce strategies. If you are going to be excellent at ecommerce fulfillment, you need to have great perpetual inventory capabilities.
However, what is clear from our recent study of 73 manufacturers using supply chain planning is that companies using best-of-breed solutions implement faster, achieve a quicker Return-on-Investment (ROI), and are more satisfied. These solutions require greater insights and understanding by the manufacturer and implementing company.
It is also helping to bridge the supply chain management gap that has traditionally existed between healthcare providers and other industries such as manufacturing. According to this same research, there is an opportunity to reduce total supply expense by average of 17-18% for a given hospital. The Path to Supply Chain Excellence.
It’s no secret that manufacturing companies around the world are rethinking their supply chain strategies. One of the ripple effects of the pandemic was that domestic sourcing, where possible, grew as companies could no longer import products for their production line. Australian reshoring strategies for advanced manufacturing .
In these times of global turmoil, there are five (5) important megatrends shaping supply chain innovations in the coming years, namely in e-fulfillment, sourcing, food and agriculture, labour intensive operations, and halal supply chain management. From global to local and regional sourcing. Marco Tieman – CEO, LBB International.
<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.
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. Here is my argument. You got it!
In parallel, PE/venture capitalists purchased/consolidated network solutions, slashing R&D and delaying investment, reducing industry capabilities. If you, like most, are running your supply chain based on ERP and Excel spreadsheet data, you are not prepared. – Technology Evolution Outpaced Adoption. No one knows. What to do?
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. The Terra Technology investment is one of what we believe will be a series of purchases to build inter-enterprise cloud-based software platforms to redefine supply chain planning.
This team was working on quality improvements and found that the flows crossed 117 disconnected documents in access, excel, and google analytics. These sources while functional are difficult to connect. Most deployments focus on functional excellence–manufacturing, transportation, customer service or procurement.
Source Wikipedia. Consumers became more loyal to retail brands, and retailers increased the number of products manufactured and marketed as house brands. Consumers want to shop anywhere, and buy in the way that they want to buy. …there is not substitute for an accurate PI signal in supply chain excellence.
In fact, today several leading halal production standards (like the Indonesian and Malaysian halal standards) are already requiring a segregation between halal and non-halal in transport and storage for halal certified manufacturers. In summary, halal supply chain management = halal excellence of supply chain processes.
I wrote my first report on Sales and Operations Planning (S&OP) while sitting on the floor in the Atlanta airport in 2005 when I was an AMR Research analyst. 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. Mistake #3.
That is the role of marketing or sales or procurement. Yes, I believe that supply chain overlays on top of the sales and marketing organizations and the procurement function. We have let buy- and sell-side transactional relationships erode value. It will also impact the factory with a redesign for digital manufacturing.
The procure to pay focus may continue, but other types of COE activities are layered on top, building on progressively more sophisticated activities such as KPI development, category intelligence support, risk management, contract management, and predictive analytics.
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