This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
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%.
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.
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.
Let me start by saying that t he process is not a panacea to solve all supply chain ills. For most companies, building a great S&OP process is a missed opportunity. For me, there are ten characteristics that define a great S&OP process: Clear and Actionable. S&OP is a business process.
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. Is your plan feasible? Sounds easy, right?
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 demandplanning. Inventory Health.
Neil’s post in response to my post of Driving Value From Outside-in Planning : In her post, ‘Driving Value from Supply Chain Planning’, Lora Cecere provides great supply chain analysis and benchmarking for her supply chains to admire. Supply chain leaders love shiny objects.
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.
Sudden and significant changes in demand, especially in consumer markets, stack up more challenges, requiring order revision and reallocation. These steps include sourcing and receiving inventory, storing inventory, order processing, picking and packing an order, shipping the order, and returns management.
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.
Demand forecasting is a critical strategy for supply chain management that can dramatically improve business decision-making and financial performance. However, securing leadership buy-in for demand forecasting technology requires a strategic approach that clearly demonstrates value.
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.
Sales & Operations Planning (S&OP) is an established industry process that aims at finding a balance between demand and supply and streamlining cross-functional collaboration. Procurement People should learn the Sales & Operations Planning (S&OP) Process.
For over a decade, since founding Supply Chain Insights in 2012, I have pounded the keyboard, asking business leaders to think more holistically about the impact of supply chain decisions on the firm’s value, the improvement of a value chain, and the impact on the environment. Thirteen years. Where does time go?
While the terminology evolved, the underlying thesis of S&OP has stayed the same, i.e., bridge the divide between sales forecasts and operational plans while respecting the budget. Then the process was put to test in recent times, as increasing demand and supply side shocks caught companies flatfooted.
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.
Good forecasting leads to good demandplanning —and good demandplanning means better profitability. That’s why it’s essential to be sure you’re equipping your organization with the right demandplanning software. Here are our answers to some of the most common questions about demandplanning software.
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.
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. The opportunity is to rethink planning. Yawn and walk on if the answer is i mproving demand error or reducing inventory levels.
Self-congratulations notes abounded this week as vendor-after-vendor shared their rankings on the Gartner Magic Quadrant for Supply Chain Planning. I believe that the Gartner Magic Quadrant is a barrier to progress in supply chain planning, and that vendors that rally in support have a false sense of superiority.
Supply shortages resulting in empty shelves or parking lots of WIP inventory represent a spectre causing supply chain leaders to reconsider supply chain inventory practices. Opinion of just-in-time (JIT) as a practice has taken a battering and inventory is rising. Is supply chain inventory the problem?
During my current supply chain planning market research, I have received briefings from several SCP companies. Many say that they are using generative AI, a type of AI that can create new content and ideas, as part of their journey toward autonomous planning. Solvoyo has a metric they call the user acceptance rate.
As supply chains become more impacted by market disruptions and unpredictable events, they’re also becoming more critical to a company’s customer experience levels and bottom line. Creating a data-driven supply chain tracking important transportation metrics helps shippers respond and adapt as quickly as possible to known and unknown events.
Tightening of pocketbooks: changing demand patterns. Federal Reserve Bank of New York, Global Supply Chain Pressure Index, [link] What can you do? 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. A waste of time.
But shippers looking to avoid disruptions and ensure that tight inventory levels don’t lead to missed sales opportunities pulled their orders forward. As companies look ahead to the next three to six months, they’re weighing costs, risks, and demand as they plan and adapt their inventory strategies.
Life for the supply chain leader is more complex. The future inventory fire sale. Instead, we need new approaches to sense, orchestrate and collaborate within organizations to improve outcomes.) We are living in a world of rich supply chain case studies. Why Is There No Economy of Scale in Supply Chain Acquisitions?
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.
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.
” Here is an excerpt from the article: “…it isn’t by becoming more efficient that the supply chains of Wal-Mart, Dell, and Amazon have given those companies an edge over their competitors. According to my research, top-performing supply chains possess three very different qualities. ” Hau Lee, October 2014.
Let me explain, if you fill out one of my surveys on LinkedIn, I share the research results in front of the paywall (I believe that supply chain research should be readily available and not locked behind a paywall.) (If Most see their supply chain as fixed and insular. So, you might say, so what Lora?
For years, supply chains were engineered to be lean. 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. Lean models alone are no longer sufficient.
Each year, we compile a list of top-performing Supply Chains, termed the Supply Chains to Admire. Using balance sheet data from 2011 to 2019, we chart companies’ progress by peer group on rate of improvement and performance in the metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC).
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-optimized supply chain can drive significant improvements throughout their operations.
Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Regular reviews and joint business planning foster accountability and trust. Do Embrace Technology and Data : Use real-time data for demand forecasting, inventory management, and route optimization.
Because of service disruptions – not being able to buy toilet paper, for example – the supply chain has been more discussed than ever before. It was also a very, very tough year for supply chain professionals working in the grocery supply chain. But just how bad was it? I look forward to this study every year.
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. Only the next month’s plan firm.
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. Let’s take P&G as an example. The reason? A Case Study. Was this by design?
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.
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.
Ever feel like your supply chain is a tangled mess of spreadsheets, frantic phone calls, and last-minute scrambles? That’s where data analytics comes in. It’s the key to transforming your supply chain from a source of frustration into a well-oiled, profit-generating machine. Let’s dive in.
But then, supply chain disruption became the rule instead of the exception, consumers changed their tastes as often as their socks, and global competition started playing hardball. Suddenly, managing inventory is the name of the game for companies trying to manage working capital and maximize profit while keeping customers happy.
Inventories in the chemical industry are at record lows: a forerunner of bad days ahead. While we will recover quickly in retail (moving from painful shortages to a glut of inventory), the chemical industry–sitting four and five layers back in the supply chain–takes longer to recover. ” [link].
Promotion Management is defined as optimizing the utilization of tools, strategies, and resources to promote a product that will generate additional demand. Let’s face it, who doesn’t like discounts or promotions on products they want to buy? Why should we consider Promotion Planning in Inventory Management?
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.
We organize all of the trending information in your field so you don't have to. Join 102,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content