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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.
Machine learning (ML)a specialized field within artificial intelligence (AI)is revolutionizing demandplanning and supply chain management. According to McKinsey , organizations implementing AI-driven demand forecasting solutions can reduce forecast errors by 30% to 50%.
When you talk to companies that have implemented enterprise or supply chain applications, executives will usually admit that they have under-invested in training and preparing users to use the new technology. Molex implemented a multi-enterprise supply chain network platform from SAP called SAP Business Network.
She wrote, “I have been working in the supply chain for 35 years, and we are still trying to solve the “demand” issue. Solving from a supply side seems to work for many companies I work with. I know that your primary focus is procurement. The distribution models were never tested when implemented.
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?
In the fast-paced world of modern supply chains, traditional forecasting methods fall short. Probabilistic forecasting is revolutionizing demand forecasting, supplyplanning, and inventory optimization by significantly improving forecast accuracy and decision-making across distribution networks.
In my recent Mea Culpa post, I mentioned my prior work on Sales and Operations Planning (S&OP), and the importance of leadership. Leadership and S&OP? If you have walked in the shoes of the supply chain leader, you are probably laughing by now. Supply chain complexity is analogous to cholesterol.
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 DemandPlanning Solutions.
Wikipedia In 2014, I was exploring methods to publish what is now the Supply Chains To Admire report. The use of orbit charts allowed me to see the patterns of performance at the intersection of metrics over time. We purchase data from Y charts. (A We have archived corporate reporting from Y charts for 1982-2023.
Today, in supply chain planning, this could not be further from reality. In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. Each is attempting to slather AI on today’s offering: this fueling a hype cycle for agentic AI. The reason?
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.” ” Or “push a shift from a focus on cost to drive value?” And, how do you tie functional excellence to corporate value?”
(Most of the business networks were hollowed out by venture capitalists or purchased by opportunists. ” My problem is that we move through these hype cycles with little accountability for spending and with a major opportunity cost to not redefine work. The opportunity is to rethink planning. This will not help.
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.
My head is wobbling with announcements, late-night Friday press releases, company name changes, and executive turnover in the supply chain planning market. Logility, a conservative company supply chain planning technology, historically had no debt and cash reserves of more than 80M, is undervalued in this deal.
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 supply chain. Components of a Demand-Driven Journey. Incrementalism Is Not Enough.
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 ,).
Strategic sourcing and innovative solutions are often viewed as two distinct procurement tools, but they should not be seen in isolation. Think of them as apples and gearseach essential and effective on its own, yet when combined; they create a formidable mechanism for achieving procurementexcellence.
Today, I speak at the North American Manufacturing Association, Manufacturing Leadership Conference, in Nashville on the use of data to improve supply chain resilience. Background The Council of Supply Chain Resilience met for the first time this month. Let’s start the beginning. What is supply chain resilience?
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 plannedcost (standard pricing) allocated for purchasing activities and the actual cost incurred.
Today, we published The Supply Chains to Admire for 2023. The companies with the strongest year-over-year performance (placing in the winner’s circle for six more times in ten years) are Apple, L’Oreal, Nike, Paccar, TJX, and TSMC. Supply Chains to Admire Winners 2023 Examine Your Own Paradigm. I admit it.
”) So, I sat across from a stranger on a cold winter night, the only thing that we had in common was our experience in supply chain planning. . And won’t the supply chain follow suit?” The supply chain planning industry is fraught with big claims with little substance. The facts are clear.
Today, supply chain excellence matters more than ever. During the pandemic, the supply chain discussions take new importance. While the supply chain technology market lost its allure at the start of the last decade, it is now cool again. The supply chain career is new. Reflection. Evolution is messy.
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). Let’s start with a basic definition.
Integrated Planning: Tight Coupling of Enterprise Resource Planning (ERP) to Supply Chain Planning (SCP). When companies tell me that they need to exchange their current Supply Chain Planning (SCP) from a best-of-breed provider to get a leg-up, I ask, “Why?” It makes no sense to me. Or accidental?
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. I wrote many reports on airport floors in those days–electrical plugs were just too scarce.) Sales and Operations Maturity Model from 2005-2008.
In the vast sea of supply chain information, which SCMDOJO supply chain article truly stands out? Dive into our curated list of the top 12 blogs from 2024 that will elevate your supply chain knowledge and give you a competitive edge. Read In Detail About Procurement Department Here 2.
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. I see a preponderance of reports and white papers that have lots of pages but say little. Back to John.
This notice of the Rodanthe house purchase by the National Park Service was listed in my news feed above an article that Elliott Management Partners announced a confirmed 13.8% On August 31, 2023, E2open reported fiscal second-quarter reporting. While the company’s adjusted earnings of $0.04 The reason? The problem?
In 2004, I worked with a Midwest North American meatpacker to help define its supply chain strategy. The group needed a clear market signal on consumption patterns and the translation of demand with minimal latency to optimize price, mix, and schedule the factory to manage margin. What do I mean? To illustrate, let me share a story.
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. In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times.
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? But, did it add more value?
Looking to improve operations and achieve cost savings within your procurement processes? Perhaps you already have a process audit report, or are interested in discovering how it could benefit you and streamline your operations. What is the Purpose of a Process Audit Report?
Understanding how your Procurement and Supply Chain KPIs are performing isn’t just a nice-to-have; it’s essential for survival and growth. Is inventory bloating your costs? Why You Need Visibility of Supply Chain and Procurement KPIs? Want to know which Supply Chain KPIs you should be tracking?
As a supply chain leader, he is struggling how to dance in the ring of fire. The ring of fire is corporate politics at the executive level on supply chain performance. Each executive has a different perspective on the definition of supply chain excellence, but they are never discussed and aligned. Let me explain.
Analytics and business intelligence (BI) are no longer optionaltheyre essential. They integrate, align, and activate data across the business to drive better, faster decisions unlike legacy reporting tools that can’t. Flexible Delivery Options Interactive dashboards, scheduled reports, alerts, mobile access, and more.
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. in decision-making, the ability to adjust plans quickly—or even to design an entirely new plan—is critical when deadlines are pressing.
Earlier in 2022, we conducted a survey of 8,000 consumers across North America and Europe to get a better sense of their ecommerce experience and how they were reacting to retailer performance. On one hand, consumers expect to increase their online purchases post-pandemic. The results of the research are a good news, bad news story.
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.
When you look behind the scenes of a global business operation, procurement strategy and supply chain management are usually top priorities, though theyre not always working in sync. This blog explores procurement vs supply chain strategy and looks at how aligning the two leads to operational excellence.
In 2012, I published an article on Sales and Operations Technology (S&OP) Maturity. (I I never republished the report, because not enough has changed to warrant it.) The report centers on the concept of moving from inside-out to outside-in technologies. What Is An Inside-Out Planning Process?
“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 supply chain world since 2020, and it looks like we will be living with this blessing/curse for a while longer. Emerging Themes for Supply Chain Planning.
Few organizations are immune to the effects, which are acutely felt in supply chains — and the more complex they are, the greater the probability of interruptions. The study found that these leaders considered the largest gap to be between supply chain and procurement, citing it as a major issue. Collaboration is Key.
As businesses become increasingly global, professionals in the supply chain field must keep up with new technologies, trends, and best practices. Summary Table edX Supply Chain Courses vs. SCMDOJO Aspect SCMDOJO edX Focus & Specialization A dedicated platform focused entirely on supply chain management.
. <Bear with me… > Here I share a nine-step process in an attempt to help companies unravel the process for buyingsupply chain planning software. Let’s face a hard fact: the supply chain planning market is a mess. Most have purchased software, but are dependent on Excel spreadsheets.
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