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The manufacturing sector is facing unprecedented volatility in global trade, with tariffs becoming the latest in a series of uncertainty drivers that are impacting virtually all industries. Manufacturing plants are deeply entrenched; tied to infrastructure, suppliers, skilled labor, and regulatory requirements.
For example, Waffle House openings in the southeastern United States are an essential signal for hurricane recovery to align distribution policies. I helped a manufacturer of men’s underwear grow its market share by testing price points and assortment on Amazon before the launch in brick-and-mortar stores.
More recently, fluctuating trade policies have emerged as a persistent challenge, especially for firms with global footprints. When a critical Tier-2 supplier is affected by a tariff policy change or regional shutdown, the ripple effects often catch manufacturers by surprise. AI also helps with scenario modeling.
Yawn and walk on if the answer is i mproving demand error or reducing inventory levels. Policy and Rules Management: Ontological frameworks enable complex rules and policy management. Ontological frameworks enable constant learning and policy adaptation. How do you know you have a better outcome or decision?”
Speaker: Andrew Kurpiel - AmerCareRoyal | Bill Benton - GAINS | Paul Benhamou - Benco Dental
Leading distributors and manufacturers are finding success in today's challenging environment by leveraging data and insights. By targeting inventory investments and regulating service expectations, their inventory optimization activities have improved performance. To accomplish this, you must evaluate and act on real-time data.
This policy shift is being positioned as a voluntary industry transition rather than an outright regulatory ban. Sourcing and Ingredient Availability A central impact of this policy is the need to replace synthetic colorants with natural alternatives. food supply by the end of 2026. The affected dyes include Red No. 40, Yellow Nos.
Now consider that by not optimizing your inventory from a global vantage point you may be creating, if not outright chaos, a much less efficient network than you could have. There are many pieces of the modern manufacturing supply chain. The basic approach to inventory optimization. This is no easy task.
This is amplified across the supply chain into an exponential impact on inventory and planned orders for manufacturing. When we measure the bullwhip impact (in my class on outside-in process thinking), the bullwhip between manufacturing and procurement is 2-3X. Inventory Health. Measure inventory health.
In an era where the threat of supply chain disruptions is constant, reshoring manufacturing has become a strategic imperative for manufacturers worldwide. Additionally, the desire to shorten supply chains and improve responsiveness to customer demands is encouraging more manufacturers to explore reshoring.
Theyre feeling the heat most, as sudden trade policy curveballs throw procurement plans into chaos. manufacturer I know saw their import costs jump overnight, forcing a rethink of a decade-old sourcing strategy. Nearshoring and Local Sourcing Given the unpredictability of global trade policies, nearshoring has become a viable option.
Optimization is peak efficiency, using the perfect balance of inventory and resources to service customer demand without incurring any unnecessary costs or waste. Optimizing is meaningless without an inventory optimization objective. Of course, inventory optimization is infinitely more complex than yacht racing.
Manufacturers have started implementing features of the Fourth Industrial Revolution (4IR) to be more flexible and responsive and make more intelligent, data-driven decisions. Manufacturing can not only use IoT for manufacturing, but also to give inventory management greater flexibility and improve decision-making.
Automotive: Can JIT manufacturing survive legal disruptions to tariff policy? Automakers must model dual-path sourcing strategies and reintroduce buffer inventory—not just for parts, but for regulatory flexibility. Many fabs depend on protectionist policies for viability.
How should a global manufacturer make a decision? In short, the research tells me that the manufacturing industries are stuck. In contrast, for a global manufacturer, the answer is more complex. Define a proactive approach and the value/economies of scale of planning manufacturing/transportation and sourcing together.
At the forefront of this change is the circular economy – a framework that’s reshaping not just vehicle manufacturing but the entire automotive aftermarket. Multi-Echelon Inventory Optimization (MEIO) : Ensures optimal inventory levels across all stages of the circular supply chain.
Gartner Research analyst Paul Lord has developed a thought-provoking approach (shown in the above diagram) for tailoring supply and inventory tactics to different inventory segments. Traditional ABC inventory models segment inventory into A, B and C categories based on annual consumption value.
By harnessing the growing power of AI to not only sense demand at a very fine-grain, real-time level, but also to govern decisions about pricing and inventory. In terms of inventory strategy, First Insight assigns each SKU a unique “Value Score” based on a range of factors, including pricing, likeability and consumers’ likelihood of purchase.
For instance, hurricanes may delay shipments while earthquakes disrupt manufacturing operations. Opt for insurance coverage: Protecting against potential losses through comprehensive policies is smart planning. Adopt accurate forecasting models: Use market trends and historical data to predict future inventory requirements accurately.
Do Embrace Technology and Data : Use real-time data for demand forecasting, inventory management, and route optimization. All rights reserved Privacy Policy Cookies Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels.
trade and support domestic manufacturing. A wave of uncertainty When the tariffs were paused (currently set to expire in August), shippers quickly resumed ordering—both to make up for delayed shipments and to ensure sufficient inventory ahead of potential demand spikes. This situation presents a double-edged sword for many companies.
Technology can automate role-based views up and down the river of demand for all roles: marketing, sales, finance, manufacturing, procurement, transportation, and human resources. As consumers complain of empty shelves, and manufacturers struggle to obtain materials, organizations will struggle to align. The impact is exponential.
Today, I speak at the North American Manufacturing Association, Manufacturing Leadership Conference, in Nashville on the use of data to improve supply chain resilience. Interestingly, in Q3 2023, 38% of manufacturers, distributors and retailers missed their target for revenue guidance for the quarter. The result was restatement.
manufacturers have spent the last few decades consolidating production at gigantic offshore plants, especially in China. Such a model, based on prioritizing unit economies and production at scale, doesn’t prepare manufacturers and retailers for the waves of disruption that are washing over global supply chains today.
I worked three layers down in the organization for a well-established leader in manufacturing named Dan. Dan had a very manufacturing view and Fred focused on logistics. In the early 1980s, As a result, we did not have a perpetual inventory signal. As a result, inventories ballooned after the DRP implementation.
Material handling and forklift equipment manufacturers, including Hyster-Yale, rounded out the comprehensive showcase of integrated solutions shaping the future of supply chain operations. trade policies on sourcing strategies, inventory flows, and distribution networks amid rising costs.
Smart inventory allocation and deployment starts with the right digital supply chain platform. For most businesses, the past two years have been a much-needed teaching moment on the state of their inventory planning, tracking, and management capabilities. Decades-old, tried-and-true rules ?
Financial writer Emma Kerr ( @emmarkerr ) explains, “Inflation is caused by factors like pressures on the supply or demand side of the economy, money supply policies and even consumer expectations.”[1] The irony of excess inventory. Excess inventory was also caused by the Bullwhip Effect.
How will the policy be executed? Today, there is not a well-defined template on how to build and operate a supply chain defined by customer policy and segmentation strategy. Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies.
These may include cycle time, cost avoidance, policy adherence or others. Align Sourcing Decisions with Compliance and Policy Rules Manual reviews and policy enforcement often fall short in complex enterprise environments. Platforms should support structured collaboration from intake management to invoice automation.
If S&OP efforts were that effective, don’t you think that we would have made more progress against inventory levels, margin, and growth? In part, this results in increasing swings in inventory in response to shifts in consumer demand as one moves further up the supply chain. Go to the source.
In addition, the terminal operators changed policies for chassis ownership which complicated unloading. Manufacturers build “control towers” but there no network dial tone between parties to enable prescriptive analytics and alerting.). Get Good at Inventory Management. Each technology provider operates in isolation.
Inventory management is important because it provides a buffer to balance out the uncertainties between demand and supply. However, while it can be viewed positively, holding inventory also creates problems. As an asset on a company’s balance sheet, reduced inventory results in a higher return on assets.
These may include cycle time, cost avoidance, policy adherence or others. Align Sourcing Decisions with Compliance and Policy Rules Manual reviews and policy enforcement often fall short in complex enterprise environments. Platforms should support structured collaboration from intake management to invoice automation.
With the advent of true “single source of truth” inventory visibility , a digital twin is a more feasible goal than ever before. In short, they help users make better decisions, much faster, resulting in improved financial performance, inventory efficiency, and customer satisfaction. Get the insights you need.
Since January, Canadians’ weekly grocery trips have become a real-time indicator for the potential impacts of tariffs as shoppers have responded to threats with a showcase of buying power, prioritizing nationally sourced and manufactured products even before a single tariff was enacted. goods were “ rapidly dropping.”
Direct Procurement, or direct sourcing , is the end-to-end process organizations follow to manage the procurement of direct materials – any materials, parts, or components that are directly incorporated into the products being manufactured. What Is Indirect Procurement?
Companies importing and exporting goods, be it finished retail products, manufacturing components or materials, now face substantial cost and price pressures that squeeze margins and force difficult pricing, sourcing, operations and distribution decisions.
Food manufacturers need to look at signals such as the price of commodities and patterns of consumer demand to plan their buying based on outside-in bidirectional orchestration. What are the challenges and where do they arise from sourcing through manufacturing and delivery? Procurement must adjust accordingly.
Managing consumer packaged goods inventory is challenging at the best of times, and it can be debilitating during times of local or international disruption. An advanced inventory planning and optimization solution allows these companies to set and maintain precise stock targets across a global network. Robust Inventory Management.
With COVID-19 inspired Global policies in place, day-to-day routines for industries on a global scale had to change how they operate within the supply chain sector. gained immense popularity) or health care, manufacturing employment has decreased?nearly The Labor Shortage Effects on Supply Chain. As the pandemic continued and?
From the new tariffs impact on supply chains to newer policy shifts between the U.S., Tariffs are reshaping sourcing strategies, forcing tech upgrades, and making inventory planning a lot more complicated. Instead of waiting for an unexpected EU tariff to force a reaction, the brand closely monitors market and policy trends.
Too many companies get locked into traditional processes and a familiar vicious cycle: unable to reliably forecast an increasing number of SKU combinations, they load up on inventory to accommodate long-tail, erratic demand. achieving the same overall customer service level objective with far less inventory expense. percent, etc.,
Policies might be flexed to drive more short-term volume, making the rest of the company strain in meeting the increased demand. Across partners, objectives for delivering on-time and in-full can also be at cross purposes with keeping costs low, both from an inventory carrying perspective, as well as from a logistical perspective.
On our budget then, this felt like a fortune and fueled my interest in energy policy. Pharmaceutical manufacturer Amgen built a new biomanufacturing plant in Singapore that uses 70% less carbon than traditional facilities. Reducing inventory saves money but also reduces waste, because obsolete inventory becomes another problem.
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