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For the past decade, I have been studying these patterns. We purchase data from Y charts. (A Studying Performance of the Gartner Top 25 Award Winners Plotting corporate patterns against peer group performance through orbit charts enables a quick understanding of supply chain excellence. Consider Lenovo in Figure 1.
This case study is the best example we have seen of a customer-centric supply chain. The Company;s senses consumer preferences to change and align their portfolio to deliver personalized products for purchase anytime and anywhere. It is one of the most effective regional/global governance models studied.
However, this approach ignores real purchasing behavior, such as customers buying complete sets of four tires. Probabilistic demand forecasting, in contrast, provides a full probability distribution, revealing actual purchasing patterns and enabling inventory planners to align stock levels with demand realities.
” Followed by “How are you organized, and what defines functional excellence? And, how do you tie functional excellence to corporate value?” Companies became less clear on the definition of supply chain excellence and how to implement decision support technologies. This gap grew over the last decade.
Supply chain excellence is easier to say than to explain. After two decades of study, I think because it is a lack of understanding. A Case Study. Keith led the work to move P&G from a regional to a global manufacturer opening up the Warsaw center of planning excellence and outsourcing IT to HP. The reason?
On one hand, consumers expect to increase their online purchases post-pandemic. Retailers and delivery services companies that can break through today’s cycle of mediocre home delivery performance stand an excellent chance of improving customer loyalty and growing market share. Here are three charts that paint the whole picture.
Second, the pandemic kicked online buying and home delivery into “high gear” as many consumers embraced its convenience and dramatically expanded the scope of their online purchasing. That’s exactly what the recent study “Retailers: Sustainability is Not a Challenge, It’s an Opportunity” concluded.
In my forty years of studying supply chain planning, the groups became larger, but with questionable results. For example, in my qualitative research studies, I find few can answer the questions of what defines a feasible plan, how to measure inventory effectiveness, or how to tune and refine models. Lack of executive buy-in.
In 2016, we finished a study on continuous improvement. In the study, when we asked for the top elements of business pain to drive continuous improvement for companies greater than 5B$ in annual revenue, as shown in Figure 1, we found the largest issues with cross-functional alignment and availability of talent. What Drives Value?
In 2012, when I started Supply Chain Insights , I believed that I could revolutionize the purchase of supply chain planning solutions by initiating a rating and review process across trading partners. Buying supply chain planning software is hard. How are people buying software? Put your case studies in your briefcase.
The process generally involves placing a purchase order with a supplier that says ‘Please deliver to us a cooling system to the attached specification’,” explained Ms. However, prior to implementing their current solution from Axit, this was all done via Excel spreadsheets, as Ms. Hennecke explained: “It was very challenging.
The total cost of ownership analyzes the total costs of the buying decision. The company had to ensure they were balancing everything appropriately, not only considering just purchase price variance or cost down but all the elements of the source-plan-make-deliver cycle. (In
Observations on What It Takes In the Mea Culpa post, I wrote that I used to believe that excellence in S&OP was a ratio of 60/30/10. (60% One of my favorite case studies was Campbells in 2014. See the World Kitchen case study in the Agility Report. Do you use market drivers to understand market shifts? So, bear with me.)
However, what is clear from our recent study of 73 manufacturers using supply chain planning is that companies using best-of-breed solutions implement faster, achieve a quicker Return-on-Investment (ROI), and are more satisfied. However, this is not supported by the facts of a recent study. (At Study Results. Was it intentional?
Consumers constantly change the mix preferences in purchases. Somedays, the focus is on steaks or ribs and the next on the purchase of ground or cubed meat. The Supply chain leader wants Technology from Company C, and the demand planner intends to purchase a solution from Technology Solution D. Avoid Badly Written RFP Bake-offs.
Theme 2: Online buying will fuel home delivery growth, challenges and new strategies. In the same ecommerce study, over 72% of consumers experienced a delivery failure over a three-month period. The only bright note is that shipping costs will be a fraction of what they were over the last several years. Figure 1: U.S.
The older tools from CAPS Logistics, SNO from Oracle, and Manugistics Network Planning are giving way to new technologies like the Logictools product (purchased from IBM), the Solvoyo product for concurrent planning, the Quintiq technology for concurrent optimization, and the Llamasoft technology platform for optimization and simulation.
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. A 2023 Deloitte study revealed that companies using strategic sourcing models saw a 15% reduction in procurement costs.
Studies show that 88% of consumers have abandoned online shopping carts due to unsatisfactory delivery terms, and 85% of customers will not shop with a retailer again after a poor delivery experience. To remain competitive, retailers and carriers must excel in the crucial last-mile delivery stage.
Consumers want to shop anywhere, and buy in the way that they want to buy. I have studied the building of collaborative processes and written about the shifts and highlighted where we are gaining value. …there is not substitute for an accurate PI signal in supply chain excellence. My Letter to the Retailer.
<Bear with me… > Here I share a nine-step process in an attempt to help companies unravel the process for buying supply chain planning software. They center on how to make a good decision in the purchase of supply chain planning solutions. Most have purchased software, but are dependent on Excel spreadsheets.
Nick Lynch is the Global Excellence Manager at Shell Lubricants, a division of Shell Global. The Company implemented SAP Advanced Planner and Optimizer (APO) including the standard functionality of Demand Planning (DP), Supply Network Planning (SNP), and Production Planning and Detailed Scheduling (PPDS), yet many planners also used Excel.
3) Managing the Supply Chain : The Definitive Guide for the Business Professional by David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi This book will show you how the advanced supply chain theories can be implemented via small case studies from many world''s leading companies.
I am currently working on a couple of case studies for this blog on how business leaders used digital twin modeling during the pandemic. Initially, the output was published to procurement to design strategic buying strategies. Procurement: Purchase price variance and procurement cost. The Emergence of Logistics as Constraint.
Eerily the case studies sound the same as the ones heard when I completed S&OP research in 2004. And, when it comes to their case studies, I do not find the step change. Dependency on Excel. Excel–while widely used for planning–is not equal to the challenge of modeling complex supply chains. The reason?
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. We are driving functional excellence and incrementally. (To Question the Basics.
In a recent study, roughly 1/3 of respondents were familiar or very familiar with the concepts of the Graph Approach. Like Linus clinging to his blanket, supply chain teams make most of their decisions on Excel spreadsheets. Most current spending is focused on deploying traditional optimization on relational databases.
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. the company is owned today by 20 organizations representing manufacturers, distributors, hospitals and group purchasing organizations (GPOs). Marketplace Rebirth.
Gartner purchased the firm in 2010.) Driving Improvements in Supply Chain Excellence. He felt strongly that supply chain leaders knew how to drive supply chain excellence and needed a forum– or maybe two or three depending on the business model– to help them network and refine their approaches. I disagreed.
The issues are largely rooted in politics and the lack of clarity on supply chain excellence. Or planned orders to purchase orders?) In one of the case studies, a manufacturer reported that they had 1700 employees with the term “data” in their title, but they lacked insights. And how do we measure it? (Is
The study found that these leaders considered the largest gap to be between supply chain and procurement, citing it as a major issue. He is passionate about the role technologies play in driving supply chain excellence and business growth. At GEP, he leads product marketing for the company’s AI-enabled supply chain solutions.
Pricing Structure Affordable pricing, with annual access to purchased courses and practical resources through Pro Plan. Its sole focus on supply chain management makes it an excellent choice for anyone serious about developing specialized skills in this field. A general platform covering various subjects, including supply chain.
Our current processes and dependencies on Excel spreadsheets cannot get us to our goal. E2open last week announced the purchase of Serus. This purchase increases E2open’s capabilities for visibility into the processes of the outsourced semiconductor network of foundries. 3) Risky Business? We hope to see you there!
Ed argued that instead of buying new packaging equipment that we should work with R&D to have a base flavor and add the color and flavoring at the head of the machine. While companies speak for the need to drive agility and resilience, the real focus is operational excellence. Sector Averages in the Process Industry.
The network senses, translates, and orchestrates market changes (buy- and sell-side markets) bidirectionally with near real-time data to align sell, deliver, make and sourcing organizations outside-in. An example of social listening is the Lenovo Case Study presented at the 2015 Supply Chain Insights Global Summit. Market Drivers.
There is an inverse relationship between margin and supply chain excellence. In doing studies of different industry subgroups, we find that the medical device industry is resilient. Zimmer’s strategic framework focuses on growth, operational excellence and prudent capital allocation. It matters more. My Challenge.
It was a story where people believed that functional excellence leads to supply chain superiority. I strongly feel that a blind focus on functional excellence will cause the supply chain to become out of balance. A Case Study. One that is going to eat you up! It is a low probability that this will ever happen.
My 67 quantitative studies over the past decade do not support the value. similarly, over 95% of manufacturers invested and implemented supply chain planning, but their primary tool today is Excel. and digital supply chains. Did these investments drive value? I don’t think so. Will they prove valuable in the future?
This team is not buying the message. “I study supply chains. So much so, that three years ago, I founded a research company to focus on understanding supply chain excellence. In our work, we tie research from quantitative and qualitative studies to financial results to drive new insights. I am passionate about it.
The FDA issued an exposure modification order that allows the claim to be made that “scientific studies show that switching completely from conventional cigarettes to IQOS significantly reduces your body’s exposure to harmful or potentially harmful chemicals.”. That study has now been published.
By purchasing planning and transactional systems for a common vendor, they had one throat to choke and they were familiar with the architectural elements. In the study, the respondents were asked to rate time to Return on Investment, and satisfaction. Instead, he wants to drive supply chain excellence and build the metrics that matter.
According to a new study from Oracle, 84% of people say delays would cause them to cancel their order and 80% say it would cause them to stop buying from a brand altogether. It is important to have visibility across your whole supply chain to avoid out of stock situations and offer excellent service to customers.
Many of the case studies being presented at today’s conferences were born during the pandemic and the post-pandemic turbulence. As a result, the lessons given in case studies and at industry forums do not help the industry progress. Demand latency is the time cycle to translate a channel purchase to an order.)
Several customers addressed those questions in excellent case study presentations: Dr. Bernhard Herzog, Oxea GmbH – “Business Impact of a Supply Chain Operating Network”. BASF’s goals included: Automating the end-to-end Purchase-to-Pay process from purchase requisition to invoice. Fast and effective roll out.
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