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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. My goal is to understand the impact of technologies and processes. Today, we have a number of burning platforms. It is easier said than done.
Today, supply chain excellence matters more than ever. While the supply chain technology market lost its allure at the start of the last decade, it is now cool again. Globally ten percent of jobs are in manufacturing, while 37% are associated with supply chain management. The supply chain technology market is responding.
Technology can change or even improve work. We are not designing work with the human factor in mind. The goal of human factor process design is to make it easy for employees to do the right thing (and hard to do the wrong thing). What’s missing? A recognition of the reality of the current state.
Traditionally, companies focus on the use of enterprise data — orders and shipments, which usually has a two- to four-week demand latency (the time from channel purchase to order receipt) and a 2-to 3-month market latency (the time from the market trigger to the translation into an order). Outsourced manufacturing had a bullwhip of 8-9.
Supply chain excellence is easier to say than to explain. At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. The culture is dominated by “lifers” and technology investment is conservative. The reason? Discontinued in 2011.
The attendees were sitting on the edge of their seats to hear about the next release of Llamasoft software. The market for networkdesigntools 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.
In the process, there is a fine line between marketing hype and overpromising, making buying difficult. The race started in 2016 as a foggy definition of digital appeared in supply chain marketing from technology providers. Yet, the models depict traditional supply chain software deployments. Looks similar to McKinsey, right?
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.
The issues are largely rooted in politics and the lack of clarity on supply chain excellence. However, few measure it, and no technology is available to drive a learning engine to minimize the bullwhip impact. Or planned orders to purchase orders?) To accomplish this, make a date with your planning technology provider.
In particular, Ferguson’s supply chain is built for speed and to provide high service levels. Driving an excellent supply chain depends on how people are recruited and managed, processes, and the technology used. The company uses a networkdesigntool from Coupa. Ferguson Invests in Best of Breed Technology.
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. The solution considers projected demand and service level goals. It was predictable.
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. These technologies are mature.
For the purpose of this discussion, I define agility as the design of the supply chain to deliver the same cost, quality and customer service given a level of both market volatility and process variability. It requires design. Additionally, through network strategies, be sure to design your warehouses for flows.
The basic frame of supply chain planning–functional taxonomies for optimization on a relational database–must be redesigned before supply chain leaders can reap the benefit of deep learning, neural networks, and evolving forms of Artificial Intelligence (AI). Graph architectures also use different optimization technologies.
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.
ATLANTA (August 24, 2022) American Software, Inc. million for the same period last year, and software license revenues were $0.3 Professional services and other revenues for the quarter ended July 31, 2022 increased 5% to $10.0 Sears Manufacturing Co., Company and Technology. million compared to $0.5
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?”
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.
However, this mature team found the technology insufficient. They gave lip service to the need for IT standardization, but ran their process on a custom built model that enabled reverse bill of material, and profitability analysis. Demand latency is two-eight weeks delayed from consumption purchase to translate to an order.
Through digital marketing, small brands are cropping up all over, and it is sentiment analysis and digital content driving purchases. Challenge them to build new capabilities working with innovative technology leaders. The innovation you need today will not come from large consultants or technology companies. How do we compete?”
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.
Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” ” I have been studying the evolution of inventory technologies as an industry analyst since 2002. It is truly a case of process, people and technology.
In the 1990s, I transitioned from managing an emerging supply chain organization at a mid-sized manufacturing company to working for a supply chain planning company. When I joined the software company, I had just finished my MBA at Wharton School of Business. My first assignment at the software company was to work with a paper company.
In the 1990s, I transitioned from managing an emerging supply chain organization at a mid-sized manufacturing company to working for a supply chain planning company. When I joined the software company, I had just finished my MBA at Wharton School of Business. My first assignment at the software company was to work with a paper company.
The second issue is treating supply chain planning as a technology project implementation. Putting in the technology is the easy part of the project. However, if the focus is on implementing technology quickly, the teams never refine the models to improve outcomes and build planning capabilities. Planners need time to plan.
I worked for a software company for almost a decade and implemented demand management solutions in the 1990s for multiple companies. I also worked in manufacturing during the period of 1978-1992 trying to plan demand. Many companies implemented demand management processes as a technology project. Here I share my world view.
Pandemic demand for goods, and the shifts from a service economy, drove the increase in southern California ports where 40% of ocean carriers unload for entry into the United States. Returning containers is an ongoing issue resulting in some manufacturers investigating a return to break-bulk shipping (container free). The reason?
In 2012 I built on these concepts to define the market-driven value network. The definition: an adaptive network focused on a well-defined value-based outcomes. A value network governed and defined by customer segmentation and a clear understanding of what drives value for the customer. Buffer Design. Buffer Design.
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.
On Monday, I would speak in Orlando Florida at the Terra Technology event; and on Wednesday, present the keynote at the Logistic Summit & Expo in Mexico City. I am a manufacturing gal by training. The design needs to be from the customer’s customer to the supplier’s supplier. In my opinion, we need a jump-start of sorts….
Are you looking for ways to use automation technology to stay at the top of the game? We’re breaking down 6 automation technologies to drive up your distribution center efficiency. Rethink NetworkDesign. Option 6: Human Augmentation Technology. Customer-facing technology is one piece of the puzzle.
Each are good at localized planning within a focused area of demand, supply, networkdesign, transportation planning, material sourcing or finite scheduling. The traditional advanced planning tool footprints did not give organizations a path to do this well. Supply chain planning is decision support technology.
New technology aims to make the supply chain more efficient, yet investing in the wrong technology further complicates productivity while hindering profitability. Sebastian Jungels @seb_jungels Sebastian is a co-founder at KAPUA , an enterprise SaaS provider, where he helps companies to improve their forecasting accuracy and speed.
Developed a process of excellence in supply chain collaboration. Implemented cross-docking in its supply network to enable inventory reductions. Established the strategic use of technology to gain supply chain efficiencies. Supply Chain NetworkDesign. Pioneered the use of vendor-managed inventory.
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?
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.
It guarantees the smooth movement of commodities, services, and financial resources, enabling businesses to flourish in cutthroat markets. Expertise: Sourcing, Supply Chain Analysis, Logistics & Transportation, Logistics Management Consulting, Freight (Maritime, Land, or Air), Logistics Technology Solutions.
By calculating what it truly costs to deliver a good or a service to a customer, and by comparing that cost with what you invoice to the customer, you can see what is finally left for your enterprise in terms of overall profit – or loss. Customer-specific services. How Much Does It “Cost to Serve” Your Customer? Efficient order terms.
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. Supply chain optimization involves the application of processes and tools to ensure the optimal operation of a supply chain.
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?
Getting the Service Policy Right. One of the fastest ways I know to burn money in Supply Chain management is not to have clear customer service policies or to have service policies that are poorly implemented and communicated. 3) Don’t have a one size fits all customer service policy. Scenario 2 – Buy more at once.
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. Supply Chain Service Performance.
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