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In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supplychainexcellence. 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 supplychain management. According to McKinsey , organizations implementing AI-driven demand forecasting solutions can reduce forecast errors by 30% to 50%.
“May you live in interesting times,” widely attributed as a Chinese curse, some claim this as a blessing; whichever side you take, this is exactly what’s happening in the supplychain world since 2020, and it looks like we will be living with this blessing/curse for a while longer. Emerging Themes for SupplyChainPlanning.
Thats why modern BI systems are quickly becoming the go-to solution for data-driven enterprises. They integrate, align, and activate data across the business to drive better, faster decisions unlike legacy reporting tools that can’t. But lets be clear: not all BI platforms are created equal. Why does that matter?
The Covid-19 pandemic tested the global supplychain. Like riding a bumpy road, the supplychain leader is riding the ups and downs of changing market conditions facing greater variability day-to-day. Here, based on interviews with supplychain leaders, I share lessons learned. It will not be over soon.
Autonomous SupplyChains In this competitive environment, a CPG manufacturer needs to fight to get space on retailer shelves in each region, keep those shelves stocked, compete and collaborate simultaneously with e-commerce, and maintain its operating margins. each with discrete plans generated typically in sequential batch runs.
When reviewing strategy decks for supplychain 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?”
Over the years, working for and with numerous manufacturing companies, I’ve seen many supplychain practices that cost companies money. Reason #2 Poorly executed or non-existent sales and operations planning. Reason #3 Not having end-to-end supplychain visibility. Reason #6 Not effectively managing inventory.
Supplychain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. Healthcare providers are leveraging efficient supplychains to ensure critical supplies reach patients when needed most.
by Trevor Miles I have been in the advanced planning and scheduling (APS) space since 1995 when I joined i2 Technologies in Europe. Before that I was in management consulting doing what would be called supplychain design or reengineering today. Let me start with the confusion between planning and execution.
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 supplychain professionals need a crystal ball, too.
The solution solved a relevant industry issue. I asked companies to “Navigate through the hype focusing on the feasibility of scope and technology.” In the height of the e-commerce craze, the marketplace offerings started with a focus on e-procurement. Clear governance. Today, I feel that this advice is still relevant.
The consulting team pitches a theme–vision of supplychain 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 SupplyChainPlanning? The answer is no. How do I know this?
My dad is the VP of our household’s grocery supplychain. 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.
His comments are the same–he feels that I identify problems but do not adequately define the solutions. 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 supplychain community) to improve value.
Today, nine out of ten supplychains are stuck. Despite two decades of advancement in supplychaintechnologies, companies are struggling to gain balance at the intersection of operating margin, inventory turns and case fulfillment. Like an artifact, I have kicked around in the supplychain space since the 1980s.
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.
This is part 2 of a 2-part series on how to succeed in planning and decisions amid times of disruption. 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. Technology for Effective Planning.
Nick Lynch is the Global Excellence Manager at Shell Lubricants, a division of Shell Global. Located in the United Kingdom (UK), he has more than twelve years of experience in progressive roles driving demand-drive projects for their global supplychain. Understanding the Lubricant SupplyChain. Overview of Shell.
Procurement operations are no exception. In fact, 43% of GPOs that took part in the 2023 Global Chief Procurement Officer Survey cited overall procurement risk had increased significantly as compared to 20% in the 2021 study. Keep reading to learn: What is an online procurementsystem?
With international commerce increasingly digitalized and customer requirements continuing to grow, the demands on supplychain professionals to create frictionless, responsive, and cost-effective operations have never been higher. Supercharge your supplychain career through the SCMDOJO SupplyChain Learning Track Certification!
Driving Sustainable Growth Through SupplyChain Resilience. Every industry sector and every business across the board, in APAC and around the globe have been impacted by the Great SupplyChain Disruption over the last two years, causing a blow out of transportation costs and continuous delays at every stage of the channel.
The attendees were sitting on the edge of their seats to hear about the next release of Llamasoft software. The market for network design 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. The theatre was packed.
As an analyst in the supplychain market for 15 years, I have written many articles on best-of-breed technology companies purchased by a larger company. Today I am writing my take on the acquisition of Terra Technology by E2open. It is a story of supplychain innovation. History of Terra Technology.
” SupplyChain Leader. Interview for Metrics That Matter. My kitchen table is piled high with interviews for the upcoming book, Metrics That Matter. I loved the quote that I captured today in my interview (see above), and I have enjoyed interviews with supplychain leaders like Peter Gibbons.
Understanding how your Procurement and SupplyChain KPIs are performing isn’t just a nice-to-have; it’s essential for survival and growth. But what if you could get a clear, birds-eye view of your core performance without investing in complex, expensive software? Are you truly getting the best value?
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. Do you give suppliers accurate forecasts?
It’s a holistic approach that blends strategic planning, streamlined processes, and the right technology to transform your warehouse into a well-oiled, profit-generating machine. Eight proven optimization strategies, combining technology, best practices, and sustainable solutions.
With rising costs and declining margins, health systems must become more efficient and productive. We believe that a key pillar of this transformation is the supplychain. Now, of course the systems of healthcare differ but overall the level and growth is certainly a concern. Share on Twitter. Share on Twitter.
What defines a high-performing supplychain? 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 supplychains have demonstrated.
The power of Integrated Business Planning (IBP) comes in helping companies align financial, sales, production, procurement and marketing information into a single plan, grounded in modern-day reality. Indeed, it would be surprising if they agreed. Can you imagine adding economists to this already potent mix?).
Theme 1: Global supplychains will be busy, congested and chaotic. 2023 call: Global supplychains will be slightly less busy, congested and chaotic, but cheaper – at least the transportation part. Theme 2: Online buying will fuel home delivery growth, challenges and new strategies. Despite many calling for U.S.
In the presentation, I shared data on the evolution of supplychainplanning and the results on user satisfaction. However, in the polling data in the APICS webinar, we found that over 70% of the respondents had deployed solutions from the ERP-expansionists (either SAP or Oracle). The results confound me. Background.
the biggest challenge supplychain and logistics professionals face today is not change, which is something they have always faced, but keeping up with the rapid pace of change across a variety of dimensions — technology, regulations, economic and political landscapes, demographics, and so on. What benefits are they achieving?
For the past five years, the team at SupplyChain Insights identified SupplyChains 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). About the SupplyChains to Admire Methodology.
Solvoyo’s Solution Bugaboo: something that causes fear or distress out of proportion to its importance. Organizations then convert those demand forecasts to the associated quantities of raw materials to purchase, goods to be manufactured, or finished products to ship. Would better forecasting accuracy be a good thing? Absolutely!
“If only I had the money that the company was supposed to save from the multiple ERP and supplychain projects. This year supplychain leaders will celebrate thirty years of progress in supplychain management; but we have not made progress on one of the funamentals: inventory management. I really do.
The premise of the Christensen’s book is that when companies focus on current customer needs, they fail to adopt new technologies or business models that will meet the customer’s unstated or future needs. I think that IBM, HP, Microsoft, Oracle, SAP and Teradata are victims today in the information technology sector.
Here, I postulate that the supplychain dragon is data. Supplychain leaders are drowning in data and low in insights. Today, technology providers are selling analytics. The focus is on growth, but supplychains are not fit for purpose. Their questions were could the supplychain help?
The network senses, translates, and orchestrates market changes (buy and sell-side markets) bi-directionally with near-real time data to align sell, deliver, make and sourcing organizations outside-in. Today’s supplychain processes are inside-out with a focus on orders and shipments.
For the past five years, the team at SupplyChain Insights identified SupplyChains 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). About the SupplyChains to Admire Methodology.
To drive global scale, companies need to design the supplychain to buy globally and execute locally. The design of the supplychain is fundamental to making this happen. In our interview of the SupplyChains to Admire Winners, we found a unique approach at Carter’s. SupplyChain Index.
Supplychain management is hot. Investment is flowing into supplychain companies. In 2021, more than $25 billion was invested in supplychain companies in just the first three quarters of the year. Mr. Welty understands both private equity and supplychain management. Fail Until You Win.
Six years ago, on a snowy January afternoon, I wrote my first post for the SupplyChain Shaman. My goal is to write insights for the supplychain visionary. The SupplyChain Shaman is an independent blog. I manage a team at SupplyChain Insights and actively publish using an Open Content research model.
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