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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. You are right.
Disruptions in the supply chain happen with surprising regularity. Financial crises, global tensions, supply shortages, technological innovations, and regulatory changes are inevitable we just cant predict when theyll strike. This uncertainty makes dynamic inventory replenishment optimization essential for business success.
For years, supply chains were engineered to be lean. Lean models alone are no longer sufficient. Recent years have brought a series of disruptions that exposed vulnerabilities in how supply chains are designed. Recent years have brought a series of disruptions that exposed vulnerabilities in how supply chains are designed.
In most industries, supply chains have become increasingly complex. As a result, many organizations are moving toward supply chain orchestration as a structured method for improving coordination. As a result, many organizations are moving toward supply chain orchestration as a structured method for improving coordination.
The logistics and supply chain industry is a critical component of global trade, responsible for moving goods and materials efficiently to meet consumer and business demands. Businesses face heightened uncertainty in managing costs and securing stable energy supplies.
In today’s interconnected global economy, sustainability within supply chains and logistics has become a necessity rather than an option. Regulatory demands, rising consumer expectations, and global challenges such as climate change and social inequality have made sustainable practices a strategic priority.
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. In my post Mea Culpa, I reference my work with the Gartner Supply Chain Hierarchy of Metrics. ” Let’s face it all supply chains have error.
Venture capitalists are high on Artificial Intelligence (AI), and over-exuberant professors with shiny new models are jockeying into position to get rich. The supply chain planner role is the most dissatisfied of any employee in the supply chain, but most focus on improving engines using AI into conventional work processes.
Machine learning (ML)a specialized field within artificial intelligence (AI)is revolutionizing demand planning and supply chain management. According to McKinsey , organizations implementing AI-driven demand forecasting solutions can reduce forecast errors by 30% to 50%.
Historically, supply chain leaders managed supply chains in a world of abundance. There are many factors: war, supply shortages, climate change, labor (knowledge and availability), and shifts in governmental regulation. The waste included: Negative Forecast Value Added (FVA) in demand planning. Inventory Health.
These classes are designed for networking and exploring outside-in models in a safe environment. We are stuck with old models Without new thinking, we wont get unstuck. _ Before I start, let me share that most of today’s supply chain planning processes are inside-out, rigid and supply-centric.
Sales & Operations Planning: Why Execution is Essential In today’s fast-changing business environment, Sales and Operations Planning (S&OP) is essential for aligning demand, supply, and financials goals. Ideally, it connects sales, marketing, supply chain, finance, and operations in a seamless flow.
The Connected Supply Chain. Drip Digital Supply Chain. Autonomous Supply Chain Planning. Self-Healing Supply Chains. Touchless Supply Chains. Small companies outperform large companies, and the marquee customers of major supply chain planning technology providers underperform. Industry 4.0. Drip Big Data.
Tightening of pocketbooks: changing demand patterns. Federal Reserve Bank of New York, Global Supply Chain Pressure Index, [link] What can you do? Measure it (both demand and supply) and use the insights. It is clear that the past is not a good model for the future. I give these three scenarios as examples.
Ever feel like your supply chain is a tangled mess of spreadsheets, frantic phone calls, and last-minute scrambles? It’s the key to transforming your supply chain from a source of frustration into a well-oiled, profit-generating machine. In this post, we’ll explore how data analytics can revolutionize your supply chain.
Five years ago, we all thought the COVID-19 pandemic resulted in the most disrupted supply chain landscape we would ever see. Since then, supply chain disruptions and volatility have only increased. The pace and scope of supply chain disruption are beyond human cognition, manual analysis, and consumer-grade spreadsheet tools.
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. As companies across industries have discovered, a well-optimizedsupply chain can drive significant improvements throughout their operations.
He had a load full of cotton bales, and while idling away hours at a shipyard watching stevedores load other cargo onto ships he dreamed up containers that transformed global supply chains. Supply chain optimization has also improved in significant ways that can address these trade-offs better than before.
But between rising costs, complex logistics, and the constant struggle to optimize space and labor, staying ahead can feel like an uphill battle. That’s where warehouse optimization comes in. Here’s what you can expect: A clear definition of warehouse optimization and its core components. Ready to get started?
Digital twins are emerging as digital transformation accelerators for supply chain and logistics organizations seeking enterprise-level visibility, real-time scenariomodeling, and operational agility under disruption. Introduction: Why Digital Twins Matter Now The pressure on supply chains has never been greater.
ARC Advisory Group has been covering the Supply Chain Planning ( SCP ) market for 17 years. The pandemic brought home the need for companies to run agile and resilient supply chains. Supply chain agility reflects a company’s ability to respond quickly to surges or plummeting demand.
Supply chain management has been in the news. But the intricacies of supply chain management are beyond the grasp of most. One key solution used to help manage complex supply chains is supply chain planning (SCP). Supply chain planning is a complex solution. Supply chain planning is a complex solution.
This model simplifies the world of RtM into a series of three steps that any RtM practitioner can execute. Here are the Top 5 Do’s and Don’ts to help you build a high-performing RTM model and distributor network: ✅Top 5 Do’s Do Align RTM Strategy with Consumer Behaviour : Design your RTM based on where, how, and why your consumers shop.
Life for the supply chain leader is more complex. The future inventory fire sale. We are living in a world of rich supply chain case studies. Each day, the Wall Street Journal features a supply chain failure as front-page news. Why Is There No Economy of Scale in Supply Chain Acquisitions? Baby formula.
” What makes supply chains an ideal proving ground for this evolution? It’s a natural fit for an environment built on orchestration across vendors, partners, inventory, and data. But to manage it all, supply chain professionals need action, not another dashboard. This is precisely where agentic AI shines.
When I started my business in 2012, I frequently wrote about the future using the moniker of Supply Chain 2020. We had just recovered from a recession, and my goal was to help supply chain leaders create a better supply chain by the end of the decade. At that time, Supply Chain 2020 seemed so far away. I was wrong.
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.
Picture this: You’re a warehouse manager, and with a few taps on your smartphone, you instantly know the exact location and quantity of every item in your inventory. That’s not science fiction—it’s the power of mobile inventory management. Ready to turn your inventory from a headache into a strategic asset?
The global supply chain landscape is undergoing significant transformations, influenced by rapid technological advancements, shifting consumer expectations, and the intricacies of international commerce. Developing Analytical Skills Data analysis is at the heart of effective supply chain management.
Returns Management and Integration With 35% of online purchases being returned, predominantly to physical stores, retailers are grappling with the ripple effects on inventory management. Early adopters of these integrated platforms report significant improvements in inventory turnover and reduction in stockouts.
Continuous network optimization recognizes that supply chains are complex organisms. Continuous network optimization creates an environment where supply chain planning operates at the next level. World class organizations can sustain living models of their networks and keep them tuned to small, frequent changes.
trillion distortion inventory problem. Karl is the CEO and Co-founder of Pull Logic , an AI-enabled tech company focused on reducing lost sales for retailers, brands, and manufacturers due failure points in the supply chain and selling processes. Karl Swensen and Joe Lynch discuss solving the $1.8 Summary: Solving the $1.8
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? Supply chain planning is now on its third decade.
Supply chain resiliency and sustainability are top priorities for CEOs today. To achieve these goals, corporate leadership must focus on two key areas: shift from internally focused supply chains to collaborative supply networks and actively design their supply chains.
Supply Chain Planners Analogous to Secretarial Pools? In my forty years of studying supply chain planning, the groups became larger, but with questionable results. If I had a magic wand, I would redesign work to transform the planners to become data orchestrators with supply chain planning becoming self-service by business leaders.
Continuous network optimization recognizes that supply chains are complex organisms. Continuous network optimization creates an environment where supply chain planning operates at the next level. World class organizations can sustain living models of their networks and keep them tuned to small, frequent changes.
Supply chain and logistics teams today face a pivotal moment in their evolution. The traditional metrics of excellence cost efficiency, on-time delivery while still important, are no longer sufficient in an era defined by volatility, complexity and political changes. Third, decision-making is evolving from human-led to AI-augmented.
Can you describe the outside-in model? Based on the work with Georgia Tech, we are getting clear on which metrics matter by industry. As companies adopt a balanced scorecard, the functional metrics shift to a focus on reliability. (For Their goal is clear–stabilize the blood supply in the United States.
For businesses of all sizes, the digital transformation of supply chain planning became the most important initiative. . Considering this surge in digital transformation and the changing needs of 2021, here are some insights and tips for embarking on Supply Chain Digital Transformation projects. Digital Transformation Journey.
Definition As I follow the evolution of supply chain technology, I am struck by what I see as a stream of paradox and anomaly, and the tendency of supply chain leaders to cling to convention. The world of NoSQL unified data models is inconceivable to most. Building the Effective Global Supply Chain. Art of the Possible.
Anyone who has done demand planning knows it is extremely complex, with forecasting challenges and rapidly shifting consumer demand, often exacerbated by seasonality, new product introductions, promotions, and myriad causal factors (e.g. weather, social media). Set Specific Business Objectives at the Start.
Customer metrics. Lean is DAILY continuous improvement, pull systems to reduce inventories (versus push that increases inventory), Lean Six Sigma to improve quality to.003 Use the Warehouse/3PL Transportation Management System (TMS) to optimize lanes and routes to save 15% + cost Reduction. KPIs Question 1. 3PL Answer 1.
Supporting hypergrowth while reducing supply chain logistics emissions is not an easy feat. In the early 2020s, Microsoft’s transportation and logistics team needed to meet growing demand for cloud services while managing carbon, cost and cycle time. Microsoft Cloud Supply Chain’s sustainable packaging goals have a 2025 deadline.
Two months before COVID made headlines in the US, nobody was forecasting the dramatic downturn in demand. If a recession hits, demand will decrease. How much will demand be impacted? When companies talk about improving their forecasting, they are most often referring to demand forecasting. When will the recession hit?
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