Remove Groups Remove Manufacturing Remove Metrics Remove Sourcing

Manufacturing Gains From Machine Learning

IQMS

Improving semiconductor manufacturing yields up to 30%, reducing scrap rates, and optimizing fab operations is achievable with machine learning. Bottom line: Machine learning algorithms, applications, and platforms are helping manufacturers find new business models, fine-tune product quality, and optimize manufacturing operations to the shop floor level. New products are proliferating in manufacturing today, and delivery windows are tightening.

Supply Chain Metrics: Make Sure They Are Aligned with Your Strategy!

Supply Chain View from the Field

Many people are talking about Key Performance Indicators, Metrics, Analytics, and other indicators of performance. The importance of selecting the right metrics or “measures” as I prefer to call them, is critical as we all know that metrics drive behaviors. Rather then selecting a plethora of meaningless metrics, it is always better to focus on a critical few, and select them wisely. Step 2 – Develop Metrics and Data Sources.

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Data and Digitization in Manufacturing

Enterra Insights

Manufacturing has been the lifeblood of the global economy for hundreds of years. Because manufacturers have historically moved factories to regions featuring cheap labor and few regulatory restrictions (sometimes referred to as outsourcing or offshoring), a misconception has arisen about the importance manufacturing to national economies. ”[1] Manufacturing becomes even more relevant to advanced economies thanks to data and digitization.

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Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. The technology group wanted to implement SAP IBP, and the business leaders were resistant. So I asked, “Why would you want to automate a process when the groups are not aligned?”

Measuring Up?

Supply Chain Shaman

The average manufacturing company’s supply chain organization is 15 years old. The supply chain is a complex system with finite, and non-linear relationships between supply chain metrics that drive balance sheet results. We find that companies can improve one, but not two of the metrics. Teams struggle to drive improvement in both metrics at the same time. Analysis of Performance and Improvement by Industry on the Supply Chain Metrics That Matter.

Industry 4.0: The Emergence of Cognitive Manufacturing

Enterra Insights

Analysts from the Boston Consulting Group (BCG) explain the first three revolutions were driven by steam, electricity, and automation. The BCG analysts explain, “Today, another workforce transformation is on the horizon as manufacturing experiences a fourth wave of technological advancement: the rise of new digital industrial technologies that are collectively known as Industry 4.0.” ”[2] Computers and digital manufacturing ushered in other Industry 4.0

Wanted: Supply Chain Architects!

Supply Chain Shaman

Let me start with a true confession: I am a manufacturing gal. I relished the sound of a manufacturing line when I opened the door of the factory in the morning, and I liked managing inputs so that we could maximize outputs. Manufacturing is the foundation of my interest in supply chain management. In manufacturing, I became good at labor bargaining. This was the beginning of my journey from manufacturing to understanding larger supply chain concepts.

How Many Slaves Are in Your Supply Chain?

Talking Logistics

Coincidentally, at the Ariba LIVE 2013 conference yesterday, I attended a presentation by Justin Dillon, Founder and CEO of Made in a Free World , a nonprofit group that is “building a coalition of consumers, businesses, and governments to disrupt the system of slavery.” The group plans to publish the results of the talks in May.”.

What About Them Apples?

Supply Chain Shaman

” At the other end of the continuum is the argument that “ Forecast error is the most important metric to improve.” I also worked in manufacturing during the period of 1978-1992 trying to plan demand. I have been an industry analyst covering the market– Gartner, AMR Research, Altimeter Group and my own company Supply Chain Insights– since 2001. How should demand sensing technologies be mapped to manufacturing and distribution?

Why Large Companies Increasingly Opt for 4PL Services

Logistics Bureau

In its simplest form, fourth-party logistics is a model in which manufacturers hand over the entirety of the organisation and oversight of their supply chain to a 4PL provider. the digitisation of manufacturing.

How Machine Learning Is Redefining Supply Chain Management

IQMS

Source: Machine Learning – A Giant Leap for Supply Chain Forecasting, Material Handling and Logistics Conference (PDF, 28 pp., Source: Machine Learning & AI in Transport and Logistics, Frank Salliau & Sven Verstrepen Logistics Meets Innovation Vlerick Brussels – Nov. Source: DHL, Artificial Intelligence in Logistics, 2018 (PDF, 45 pp., Source: DHL, Artificial Intelligence in Logistics, 2018 (PDF, 45 pp.,

Maximize Efficiencies With Overall Equipment Effectiveness (OEE) Software

IQMS

A leading plastics global plastics manufacturer has standardized on Overall Equipment Effectiveness (OEE) as one of their primary metrics based on its proven value in stabilizing every production machine on their shop floor.

SCRC Student Project Lineup Off to a Great Start…

Supply Chain View from the Field

NC State kicked off classes last week, and as usual our incoming group of MBA students were lined up with projects as part of their entry class into supply chain management, MBA 541. In this context, relationships may exist between internal functional groups, as well as with suppliers and/or customers. Identifying optimal approaches for managing leased space for new manufacturing facilities. Developing best cost models for global manufacturing production processes.

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Carter’s: A Story of Supply Chain Leadership

Supply Chain Shaman

Shipping approximately 400 million selling units consisting of 700 million manufactured units per year, Carter’s employs about 4,000 employees at its peak. The company leverages globally sourcing strategies to buy products at a lower cost and then deploys some unique process logic to drive mass customization for retailers. Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. (As

Getting Bangladesh’s Apparel Industry on the Map

Supply Chain Brain

Penney , Benetton and Carrefour , were reported to have products being manufactured at the Rana Plaza factory. Chief executive officer Leonardo Bonanni was instrumental in designing the latest version of the Higg Index , a tool for allowing brands, retailers and manufacturers to assess their sustainability performance. In the past, it has been cobbled together from government licensing groups and brands’ supplier rosters.

A “Swiss Army Knife” of Supply Chain Talent Requirements: Views from a Former Wolfpack Student

NC State SCRC

He then went into global imports for the central purchasing group in Raleigh. The are a regional make to order kitchen cabinet manufacturer, and have two primary sales channels of modular kitchen and bathroom cabinets. In supply chain, you can focus in procurement, sourcing, inventory control, logistics, and other off-shoots that occur on a daily basis. We have a secondary source but can’t turn in less than 5 days –and we will run out before then!

History Repeats Itself Without Supply Chain Leadership

Supply Chain Shaman

Frank, the line manager for manufacturing, dominated the meetings. Despite goals to improve agility and resiliency, functional metrics for manufacturing efficiency continually throw the supply chain out of balance. Strong manufacturing organizations do not make the most effective manufacturers. The second step is to align metrics to the strategy. A focus on cross-functional metrics improves supply chain resiliency. (I

Takeaways from Descartes Evolution 2019

Talking Logistics

One of my first clients back in 1999 was Descartes Systems Group. Source: Google. This was not a trivial transition because the software industry, until relatively recently, was long fixated on measuring its health and success by new license revenue (sales of products) instead of customer-centric metrics, such as realization of ROI and payback objectives. Descartes Systems Group Revenue 2006-2018 (Source: macrotrends).

Doing Business in Belgium

QAD

Since most Western European capitals are within 1,000 km of Brussels, Belgium’s capital, it is an ideal location for international groups. Manufacturing in Belgium. Typical manufacturing products made in Belgium include engineering and metal products, automobile assemblies, transportation equipment, scientific and precision instruments, chemicals, pharmaceuticals, textiles, glass, petroleum and food and beverages. Manufacturing accounts for about 22 percent of the GDP.

Control Towers: If Only There Was A Clear Definition

Supply Chain Shaman

Groups throw-out concepts. While there are many types of visibility (see Figure 1), the most common use case is either sourcing or transportation visibility. Contract manufacturing or 3PL data often will have a 24-hour latency due to batch integration. When they built the project, they did not realize that they did not have access to daily data daily for their third-party warehouses and contract manufacturing locations. Groups rally around the concept of real-time.

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Supply Chains to Admire: 2016 Results

Supply Chain Shaman

The source data for the analysis is public reporting of balance sheets and income statements. To determine the winners, we compare the effectiveness of each company against relative performance within an industry-specific peer group. In the analysis, we divide companies into three groups: winners, finalists and under-performers. The winners of this analysis meet all of the criteria of improvement, value and performance when compared to a like industry peer group.

The Sensing + Intelligent + Social Supply Chain: Why do you need it?

Kinaxis

However, organizations siloed in traditional functional work groups are actually impeding the flow of their own information across the network. The reality is, there’s never going to be one perfect answer that doesn’t involve some level of tradeoff across conflicting metrics and objectives. Their primary purpose was to manage manufacturing and movement of goods through an integrated enterprise—indicative of the time when most manufacturing was done in-house.

BASF: A Story of a Supply Chain Leader

Supply Chain Shaman

Over the period of 2009-2015 only 88% of companies made improvement on the “Supply Chain Metrics That Matter.” (The The Supply Chain Metrics That Matter are a portfolio of metrics which correlate to higher market capitalization. The composite of metrics includes growth, operating margin, inventory turns and Return on Invested Capital.) While most companies make improvements in single metrics, pushing the whole portfolio forward is tougher.

Supply Chains to Admire – 2016 Results

Supply Chain Insights

The source data for the analysis is public reporting of balance sheets and income statements. To determine the winners, we compare the effectiveness of each company against relative performance within an industry-specific peer group. In the analysis, we divide companies into three groups: winners, finalists and under-performers. The winners of this analysis meet all of the criteria of improvement, value and performance when compared to a like industry peer group.

Getting that “Swing” in Supply Chain Management

Talking Logistics

What you find instead are functional groups — such as Manufacturing, Distribution, Sales and Marketing, and Procurement — operating in silos, like a boat full of rowers each doing their own thing. How do you successfully align goals, metrics, and resources across functional groups? Which metrics are the right ones? Rather than selecting a plethora of meaningless metrics, it is always better to focus on a critical few, and select them wisely.

The Case for Less Silos, More Intelligence in Supply Chain Management

Talking Logistics

Source: “The Case for Less Silos, More Intelligence in Supply Chain Management,” webcast presentation by Adrian Gonzalez, Adelante SCM. Logistics, Manufacturing, Procurement, Sales and Marketing — these functional groups, for the most part, continue to operate independently from each other, each driven by their own objectives and metrics. Break down your supply chain functional silos. This advice is not new.

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KPIs That Purchasing Executives Need

Silvon Software

Companies that focus on strategic sourcing can generate substantial economic value not just by eliminating waste, reducing costs and improving administrative efficiency, but also by building stronger supplier relationships that can make them more competitive, profitable and nimble. There are many valuable metrics that can help you better assess your company’s performance at the sourcing / procurement level. These metrics are noted in the following sections below.

Reduce Costs: Invest In Talent

Supply Chain Shaman

In manufacturing-based companies, 70-80% of costs are in the processes of source, make and deliver. While the practices of finance are over 200 years old, in contrast, supply chain as a cross-functional practice (the combination of make, source and deliver) was recently defined in 1982. We analyzed the impact of 150 factors on 493 financial metrics for the period of 2004-2016. So what are the characteristics of companies managing talent better than their peer group?

Sorry, I’m Not Sure: Supply Chain and Logistics Predictions for 2018

Talking Logistics

Source: Evan, Flikr. “I SophiaTX Open Source Platform to Integrate SAP, Blockchain. If they actually follow through on their promise and oil prices continue to rise next year, how will transportation, inventory, and sourcing policy decisions change in response? And since so many aspects of supply chain management affect both customer experience and financial metrics, supply chain innovation efforts need to take these factors into consideration too.

Achieving Healthcare Transformation, Powered by Supply Chain

ivalua

It is also helping to bridge the supply chain management gap that has traditionally existed between healthcare providers and other industries such as manufacturing. As is, the healthcare supply chain is complex with multiple players involved such as manufacturers, distributors and group purchasing organizations (GPOs) supporting and interacting with multiple departments and care delivery points.

2020 Requires Big Wings and Feet

Supply Chain Shaman

The discussions are with groups of executives—often ex-management consultants. The number one question that I am asked today by manufacturers across all industries is “How can I improve customer service?” A common issue in financially-driven companies is the heavy utilization of manufacturing assets past reasonable limits throwing the supply chain out of balance. To maximize value—price to tangible book, functional metrics need to be reset to focus on reliability.

[WHITE PAPER] 4 Strategic Considerations when Considering Offshoring Parts of your Supply Chain

Cerasis

Lured by the promise of cheaper labor ( which is starting to not be the case ), companies are blind to the tactical costs of manufacturing overseas. In fact, our friends over at the Rodon Group, with whom we’ve started an ongoing blog collaboration, starting with this post and more to come, have written a White Paper entitled, “ Hidden Risks and Costs in an Offshore Supply Chain.” Don’t assume that an offshore manufacturer understands what you require.

Supply Chain Diagnostic: A Four-Step Process

Supply Chain Shaman

In my work with manufacturing companies recently, I am thinking a lot about the need for diagnostic testing. To accomplish this goal, I ask a cross-functional group to audit the past year. As a group, we drill into root issues. ” Or alternatively, “Is there data that could be sourced to help?” Many times useful data exists in marketing or sales groups, but is not shared with the supply chain team. Ask the group what is possible?

VTech: A Story of a Supply Chain Leader

Supply Chain Shaman

Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. To meet the criteria for The Supply Chains to Admire for 2016, companies needed to score better than their peer group average for performance metrics, while driving a higher level of improvement than 2/3 of their industry peer group. We first calculate The Supply Chain Index to measure supply chain improvement for an industry peer group.

Misnomer

Supply Chain Shaman

It was my first time working with this group. The team was organized around the functional silos of source, make and deliver. The group laughed. ” The group was quiet as we discussed the fact in the traditional organization that functional silos are not designed to work together. Proudly, I had led my division to have the lowest manufacturing costs with the highest Return on Assets. Misnomer (n): A wrong name. The misuse of a term or name.