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Over the past five years, supplychains have faced unprecedented challenges. E-commerce demands, trade pressures, and increasingly complex supplier networks have necessitated executives to raise concerns about their supplychain operations. Managing them requires strong technical and interpersonal skills.
I laugh when business leaders tell me that they are going to replace their current supplychainplanning technologies with “AI.” Each supplychainplanning technology at the end of 2024, went through disruption–change in CEO, business model shift, layoffs, re-platforming and acquisitions.
Historically, supplychain leaders managed supplychains 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. Most likely.)
During my current supplychainplanning 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.
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supplychain excellence. In my post Mea Culpa, I reference my work with the Gartner SupplyChain Hierarchy of Metrics. They do not excel in planning or forecasting.
In most industries, supplychains have become increasingly complex. As a result, many organizations are moving toward supplychain orchestration as a structured method for improving coordination. Collaborative Workflows Supplychains involve many teams and companies working toward the same outcome.
Self-congratulations notes abounded this week as vendor-after-vendor shared their rankings on the Gartner Magic Quadrant for SupplyChainPlanning. I believe that the Gartner Magic Quadrant is a barrier to progress in supplychainplanning, and that vendors that rally in support have a false sense of superiority.
The logistics and supplychain industry is a critical component of global trade, responsible for moving goods and materials efficiently to meet consumer and business demands. Incorporating Sustainability in SupplyChains Sustainability in supplychains extends beyond energy use, addressing broader environmental and social impacts.
For years, supplychains were engineered to be lean. Recent years have brought a series of disruptions that exposed vulnerabilities in how supplychains are designed. Recent years have brought a series of disruptions that exposed vulnerabilities in how supplychains are designed.
The supplychain planner role is the most dissatisfied of any employee in the supplychain, 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.
Machine learning (ML)a specialized field within artificial intelligence (AI)is revolutionizing demand planning and supplychain management. Even more impressive, lost sales due to stockouts can decrease by up to 65%, while inventory reductions of 20% to 50% are possible.
ARC Advisory Group has been covering the SupplyChainPlanning ( SCP ) market for 17 years. The pandemic brought home the need for companies to run agile and resilient supplychains. Supplychain agility reflects a company’s ability to respond quickly to surges or plummeting demand.
Disruptions in the supplychain 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.
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 supplychain research should be readily available and not locked behind a paywall.) (If Most see their supplychain as fixed and insular.
This week, I began teaching a new round of outside-in planning classes. As a part of the curriculum, I encourage the class to record their unlearnings because I fundamentally believe that outside-in thinking requires rethinking planning. Supplychain leaders love shiny objects. New forms of technology are an enabler.
S upply chainplanning requires constraints to be mapped. Supplychain management has been in the news. But the intricacies of supplychain management are beyond the grasp of most. One key solution used to help manage complex supplychains is supplychainplanning (SCP).
Supply shortages resulting in empty shelves or parking lots of WIP inventory represent a spectre causing supplychain leaders to reconsider supplychaininventory practices. Opinion of just-in-time (JIT) as a practice has taken a battering and inventory is rising. Why tell this story?
” Here is an excerpt from the article: “…it isn’t by becoming more efficient that the supplychains of Wal-Mart, Dell, and Amazon have given those companies an edge over their competitors. According to my research, top-performing supplychains possess three very different qualities.
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. To succeed, businesses must close the gap between planning and execution.
For over a decade, since founding SupplyChain Insights in 2012, I have pounded the keyboard, asking business leaders to think more holistically about the impact of supplychain decisions on the firm’s value, the improvement of a value chain, and the impact on the environment. Thirteen years. Change is Hard.
These steps include sourcing and receiving inventory, storing inventory, order processing, picking and packing an order, shipping the order, and returns management. Factors like planning tools, inventory management, demand patterns, and innovations in technology contribute to the success or failure of fulfillment optimization.
Five years ago, we all thought the COVID-19 pandemic resulted in the most disrupted supplychain landscape we would ever see. Since then, supplychain disruptions and volatility have only increased. We were wrong. With the global e-commerce market predicted to reach $8.1
As supplychains 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. Why Monitor Transportation Metrics. Why Monitor Transportation Metrics. Actionable data is one of the most critical business drivers.
The Connected SupplyChain. Drip Digital SupplyChain. Autonomous SupplyChainPlanning. Self-Healing SupplyChains. Touchless SupplyChains. The issue is that when companies optimize functional metrics, they throw the supplychain out of balance and sub-optimize value.
Life for the supplychain leader is more complex. The future inventory fire sale. We are living in a world of rich supplychain case studies. Each day, the Wall Street Journal features a supplychain failure as front-page news. Why Is There No Economy of Scale in SupplyChain Acquisitions?
Why should we consider Promotion Planning in Inventory Management? Whether it be e-commerce, brick-and-mortar, or both, retail companies care about the inventory they keep. During promotional management, especially for big events around special days and holidays, inventory levels need to be adjusted to meet the peaks in demand.
It is crucial to assess the organization’s technological infrastructure, supplychain processes, and compliance frameworks to ensure they are aligned with DPP requirements. Its decentralized nature reduces the risk of a single point of failure, enhancing data security across the supplychain.
“May you live in interesting times,” widely attributed as a Chinese curse, some claim this as a blessing; whichever side you take, this is exactly what’s happening in the supplychain world since 2020, and it looks like we will be living with this blessing/curse for a while longer. Emerging Themes for SupplyChainPlanning.
Federal Reserve Bank of New York, Global SupplyChain Pressure Index, [link] What can you do? Measure it (both demand and supply) and use the insights. Autonomous planning? The supplychainplanning role has expanded over 100% as companies expanded their markets. But to enable what? A waste of time.
Today, we published The SupplyChains to Admire for 2023. SupplyChains to Admire Winners 2023 Examine Your Own Paradigm. Most supplychain leaders are stuck in their own paradigms. As an old gal, with over forty-years of supplychain experience, writing this report for ten years taught me many lessons.
Each year, we compile a list of top-performing SupplyChains, termed the SupplyChains to Admire. This week, while all my friends are on vacation, I am writing the final report for the SupplyChains to Admire. Our goal is to continually redefine the definition of supplychain excellence.
Supplychain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times.
Ever feel like your supplychain is a tangled mess of spreadsheets, frantic phone calls, and last-minute scrambles? It’s the key to transforming your supplychain from a source of frustration into a well-oiled, profit-generating machine. You’re not alone. That’s where data analytics comes in.
My goal is to engage the supplychain community in a no smoke and mirrors discussion. My observation is that the supplychain community perpetuates a number of myths about planning. This post is a reflection from twenty years as an analyst in supplychainplanning. I need to clear the air.
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.
This is a story for the Eds, Franks, and Toms working together in supplychains across the globe. It is also a story for a young supplychain manager attempting to make a difference, but feeling stymied. He felt that inventory was no problem, he would just cut it at the end of each quarter to make the balance sheet goals.
For businesses of all sizes, the digital transformation of supplychainplanning 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 SupplyChain Digital Transformation projects.
That’s why staying on top of the latest supplychainplanning trends is so important – they can make all the difference when it comes to staying competitive, reducing costs, and meeting your customers’ needs. Here are some highlights from these trends in 2023 and implications on supplychainplanning.
Demand forecasting is a critical strategy for supplychain management that can dramatically improve business decision-making and financial performance. Beyond Forecast Accuracy: A Holistic Approach Demand forecasting is just one piece of the supplychain management puzzle.
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.
Let me start by saying that t he process is not a panacea to solve all supplychain ills. Clear operating strategy and definition of supplychain excellence across plan, source, make and deliver. Clear operating strategy and definition of supplychain excellence across plan, source, make and deliver.
These agents can reason, plan, adapt, and execute multistep workflows with zero human supervision. ” What makes supplychains an ideal proving ground for this evolution? It’s a natural fit for an environment built on orchestration across vendors, partners, inventory, and data. At least, not yet.
When I started my business in 2012, I frequently wrote about the future using the moniker of SupplyChain 2020. We had just recovered from a recession, and my goal was to help supplychain leaders create a better supplychain by the end of the decade. At that time, SupplyChain 2020 seemed so far away.
As an engineer, former solutions architect and now CEO of a leading supplychain technology company, I have a real affinity and respect for Chief Information Officers (CIOs) and their teams, without whom successful enterprise technology deployments would be impossible. What’s more, today’s supplychains operate at lean levels.
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