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I laugh when business leaders tell me that they are going to replace their current supply chain planning technologies with “AI.” Each supply chain planning technology at the end of 2024, went through disruption–change in CEO, business model shift, layoffs, re-platforming and acquisitions. You are right.
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. To manage continuous improvement, companies need a clear definition of excellence and organizational alignment to that goal. What Drives Value?
Machine learning (ML)a specialized field within artificial intelligence (AI)is revolutionizing demand planning and supply chain management. According to McKinsey , organizations implementing AI-driven demand forecasting solutions can reduce forecast errors by 30% to 50%.
Venture capitalists are high on Artificial Intelligence (AI), and over-exuberant professors with shiny new models are jockeying into position to get rich. Most of the business networks were hollowed out by venture capitalists or purchased by opportunists. 80% of the data that surrounds the supply chain is not used.
Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Reason #3 Not having end-to-end supply chain visibility. Reason #4 Making key decisions by modelling the supply chain in Excel. Reason #8 Keeping supply chain information in silos.
The Covid-19 pandemic tested the global supply chain. Like riding a bumpy road, the supply chain leader is riding the ups and downs of changing market conditions facing greater variability day-to-day. Here, based on interviews with supply chain leaders, I share lessons learned. The Failure of Existing Demand Planning Solutions.
At the Supply Chain Global Summit 2018 , Francois discussed the impact of digitalization, Industry 4.0, and L’Oréal’s approach to business that has allowed the company to continuously rank as a Supply Chains to Admire winner for four consecutive years. Read more to understand the details on the Supply Chain Index ,).
Consumers are ever more conscious of value, sensitive to health and environmental issues – especially after the COVID pandemic, each demanding more options for their money. End-to-end supply chain visibility, planning, and execution support software are critical in agile supply chain performance.
Supply chain excellence is easier to say than to explain. Executive teams strive to drive improvement in supply chain results; yet, sadly, only four percent of public companies succeed. The supply chain is a complex non-linear system. Understanding this relationship requires modeling. The reason? A Case Study.
When reviewing strategy decks for supply chain teams, I often see statements like “move from a functional-silo’d focus to a drive a more holistic response.” ” Followed by “How are you organized, and what defines functional excellence? And, how do you tie functional excellence to corporate value?”
Supply Chain Planners Analogous to Secretarial Pools? In my forty years of studying supply chain planning, the groups became larger, but with questionable results. If I had a magic wand, I would redesign work to transform the planners to become data orchestrators with supply chain planning becoming self-service by business leaders.
In part 1 of my blog on Planning the Value Chain and Decision Making in Times of Disruption, the focus was on the ability to react and execute amidst the unpredictability of demand. Part 2 in the series explores the “analytical scenario exercise” and how decisions based on certain scenarios heavily impact each aspect of the value chain.
Supply chain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. As companies across industries have discovered, a well-optimizedsupply chain can drive significant improvements throughout their operations.
But between rising costs, complex logistics, and the constant struggle to optimize space and labor, staying ahead can feel like an uphill battle. That’s where warehouse optimization comes in. Here’s what you can expect: A clear definition of warehouse optimization and its core components. Ready to get started?
Today, we published The Supply Chains to Admire for 2023. Supply Chains to Admire Winners 2023 Examine Your Own Paradigm. How Do You Define Excellence? Most supply chain leaders are stuck in their own paradigms. Many believe that an ex-supply chain exec knows the definition of supply chain excellence.
The consulting team pitches a theme–vision of supply chain best practices, big data analytics, or demand-driven value networks– to the executive team, and a new project is initiated. Question 1: What drives a Successful Implementation of Supply Chain Planning? Supply chain planning is now on its third decade.
When making discretionary purchases, I could look at my projection to make sure that if I made that purchase, I would have enough money in the bank, not only now, but at the end of the month when my mortgage and car loan came out. Then could I buy it? Today’s supply chain professionals need a crystal ball, too.
My dad is the VP of our household’s grocery supply chain. Millions of shoppers, like my Dad, are not going back to their old habits because there are now faster and more convenient ways for buying daily household needs. It excels on a union of E-Commerce mobile apps and last-mile delivery innovations. Inventory Optimization.
Two months before COVID made headlines in the US, nobody was forecasting the dramatic downturn in demand. If a recession hits, demand will decrease. How much will demand be impacted? When companies talk about improving their forecasting, they are most often referring to demand forecasting. When will the recession hit?
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. Optimization engines to improve functional metric performance resulted in an exploding number of planners.
The client leaned across the table and asked, “Is a customer-centric supply chain strategy the same as a demand-driven supply chain strategy?” Drawing from the Whiteboard: Building Customer-Centric Supply Chain Strategies. To help, I wrote a few definitions on the board: Demand-Driven Processes.
Today, the multi-tier capabilities for supply chain management are coming from the born-again marketplaces. While there is work within SAP to rethink SNC and use the assets purchased with Ariba to build multi-tier capabilities, the progress is not encouraging. Today, we know that these assumptions were incorrect. Marketplace Rebirth.
In part one of this blog series, I started the saga of the supply chain fairy tale. It was a story where people believed that functional excellence leads to supply chain superiority. Year after year, well intentioned people toiled against improving metrics that reduced, not improved, the effectiveness of the supply chain.
At that time, manufacturers talked about customer-centric supply chains, but were afraid to aggressively adopt ecommerce strategies. When your phone rings, and you and your supply chain team is called to the corporate office to talk about the expansion of your ecommerce strategy for 2015, here are my recommendations: 1) Embrace the Each.
With international commerce increasingly digitalized and customer requirements continuing to grow, the demands on supply chain professionals to create frictionless, responsive, and cost-effective operations have never been higher. Supercharge your supply chain career through the SCMDOJO Supply Chain Learning Track Certification!
Introduction Gardner, (1954) and Huntzinger, (2007) define Purchase price variance (PPV) as a metric used to measure the effectiveness of cost-saving efforts by calculating the difference between the planned cost (standard pricing) allocated for purchasing activities and the actual cost incurred.
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. It is a story of supply chain innovation. The product naming convention changed to Demand Sensing (DS) in 2005. Let’s start by taking a look at history.
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. Today, supply chain design has become a process all to its own. Demand and Supply Variability.
“We live in a world where supply chains, not companies, compete for market dominance. But companies often have diverging incentives and interests from their supply chain partners, so when they independently strive to optimize their individual objectives, the expected result can be compromised. ”. 3) Risky Business?
AI in retail supply chain is no longer an innovation to observe—it’s a strategic imperative to adopt. By infusing intelligence into every supply chain touchpoint—from sourcing to shelf—AI is driving operational excellence, customer satisfaction, and exponential growth.
User adoption is a challenge that often arises during the rollout of supply chain analytics solutions. 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.
Goodman titled “ The Supply Chain, Reconfigured.” ” His narrative centers on the evolution of the global supply chain evolving with a focus on labor arbitration ignoring geographic distance and shipping issues. His belief is that the internet, container shipping, and global banking shrunk the supply chain.
Before that I was in management consulting doing what would be called supply chain design or reengineering today. Needless to say they have a continued multi-year deployment of the supply chain planning system provided by the ERP vendor. I studied Industrial Engineering and Operations Research focusing on Optimization Theory.
What defines a high-performing supply chain? However, this year promises a significant paradigm shift where traditional performance metrics are replaced by technology-driven frameworks, as recent breakthroughs with Generative AI in supply chains have demonstrated. Enter our list of supply chain trends for 2024.
Think of them as apples and gearseach essential and effective on its own, yet when combined; they create a formidable mechanism for achieving procurement excellence. By fostering these relationships, businesses can ensure stable supply chains, consistent quality, and even access to supplier innovations.
We believe that a key pillar of this transformation is the supply chain. With such growth comes supply chain complexity. Shift towards self-contracting and self-distribution: With health systems gaining significant scale and wanting more control over their supply chain, this shift is accelerating. Share on Twitter.
Michael Jacobs, Senior Vice President Supply Chain, Ferguson. Mr. Jacobs is the senior vice president for supply chain at Ferguson. While nominally a distributor, “supply chain management is our core competency. In particular, Ferguson’s supply chain is built for speed and to provide high service levels.
Wait, it’s not spring; but does that mean you have to wait another eight months to review your supply chain? Often, it becomes necessary to reevaluate how supply chain performance is measured to ensure healthy operations. Ask yourself, “Are your supply chain metrics bogging you down?”
As I wrote earlier this year in Is Your Business Model Safe? , I also shared with them my view that companies will ultimately find opportunities for supply chain innovation at the intersection of Software, B2B Connectivity, and Social Networking — a trend best illustrated by the rise of Supply Chain Operating Networks (SCONs).
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.
Supply chain management is hot. Investment is flowing into supply chain companies. In 2021, more than $25 billion was invested in supply chain companies in just the first three quarters of the year. Mr. Welty understands both private equity and supply chain management. We had the demand. Fail Until You Win.
Driving Sustainable Growth Through Supply Chain Resilience. Every industry sector and every business across the board, in APAC and around the globe have been impacted by the Great Supply Chain Disruption over the last two years, causing a blow out of transportation costs and continuous delays at every stage of the channel.
Maybe you only have a slight understanding of demand for your products. Whether your brand is experiencing gradual sales or is in high-growth mode , we’ll walk you through some tips to improve your ability to forecast demand. Jump to section: What is demand forecasting? Importance of demand forecasting for e-commerce.
In the presentation, I shared data on the evolution of supply chain planning and the results on user satisfaction. Neither technology vendor is an industry leader in delivering a solution that fits the needs of the supply chain planner. Summary Data of User Satisfaction with Supply Chain Planning Applications. Background.
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