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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.
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. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.)
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 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 has shown sustained improvement on this metric. The company uses a networkdesigntool from Coupa.
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. Confluence of New Technologies. Today, we find ourselves in a hype cycle.
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. These technologies are mature. I feel that many of these technologies are now legacy.
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. Q: You mention that Executive Buy-in is the biggest stumbling block.
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.
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.
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 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.
” At the other end of the continuum is the argument that “ Forecast error is the most important metric to improve.” I worked for a software company for almost a decade and implemented demand management solutions in the 1990s for multiple companies. The capabilities of these technologies are not equal.)
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. The design needs to be from the customer’s customer to the supplier’s supplier. Brain storm the impact of the collaborative economy, eCommerce, and shared service models.
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.
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). It is now shifting again.
My primary insight is that many of the technology initiatives that were underway at the start of the disruption did not serve us well. The use of descriptive analytics along with agile planning techniques (what-if analysis, discrete event simulation, and networkdesign) helped. It will publish next week. The other issue?
The market shift was dramatic, and if we had made a series of small cuts in staff or direction, we would have had the same fate as i2 Technologies or Manugistics. For many years (1992-2001), I worked at Manugistics, a supply chain planning technology provider. He said, “Ariba was in trouble. I smiled. 21 versus P&G’s.19
I want to understand why some companies outperform on the Supply Chain Metrics That Matter while others do not. The Delta Medallion customer service agent told me that she had never seen anything quite like it. In Agrosciences is the customer the distributor of seed/additives, the farmer or the downstream purchaser of food products?
Historically, most supply chain investments were for engines–bright guys built fabulous optimization code and plonked the software onto a relational database. The engines largely operate in isolation: they lack a seamless platform. Evaluate networkdesign options to simplify sourcing and reduce the number of platforms.
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