Five Reflections From Supply Chain Planning Benchmarking

Supply Chain Shaman

In my work with Supply Chain Insights , I immerse myself in learning. I continually question my long-held beliefs on supply chain excellence. . When readers finish a Supply Chain Shaman blog, I want to drive a set of unique takeaways. Today, I am going to share five insights that I have gleaned from our work on Supply Chain Planning Benchmarking. Figure 1: Supply Chain Planning Benchmarking Methodology Overview.

Reflections on Integrated Supply Chain Planning

Supply Chain Shaman

In the presentation, I shared data on the evolution of supply chain planning and the results on user satisfaction. The use of best-of-breed planning technologies was small at 15%. Neither technology vendor is an industry leader in delivering a solution that fits the needs of the supply chain planner. The common perception is that SAP and Oracle supply chain planning solutions are superior to best-of-breed Advanced Planning Solutions.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Supply Chain Planning BPO: What’s Driving It and Should You Get On Board?

ToolsGroup

More and more businesses are hopping on the outsourcing bus and letting the experts take the wheel to drive supply chain planning processes. Several years ago ToolsGroup pioneered business process outsourcing (BPO) as an alternative to in-house supply chain planning (SCP). Now Gartner reports that SCP BPO is gaining traction ( Market Guide for Supply Chain Planning BPO or BPaaS, 29 July 2019 ), particularly in North America and Europe.

How Supply Chain Planning Can Create Profit in a Declining Market

ToolsGroup

Trends and other market forces that impact commercial opportunities need to appear on the planning radar. Therefore, traditional push-driven supply chains are wholly unfit for this situation. 1] Mohawk sought to profit from the resurgent demand for ‘ analog experiences ’ by owning the fine paper space and transforming its extended supply chain. They also cut inventory levels, grew sales and resolved capacity issues.

Supply Chain Planning in Emerging Markets: Four Points to Remember

ToolsGroup

Supply chain planning in emerging markets is different. He adds, “Often, last-mile distribution costs to rural areas are high and reliability is low, compounded by the lack of visibility of in-transit shipments.” ( Invest in Four Key Capabilities While Developing Your Demand-Driven Supply Chain Strategy for Emerging Markets , 18 September 2017) Let’s take Indonesia, for example. Not knowing how much inventory is at each location.

Three Reasons Why SAP Supply Chain Planning Is a Risk to Your Business

Supply Chain Shaman

High-tech manufacturers in the Silicon Valley of the United States are some of the best at supply chain planning. With changing product profiles, short life cycles, constraints with downstream suppliers, and changing markets, being good at supply chain planning matters. In this tough market excellence in supply chain planning is a critical element to be competitive. Getting good at planning requires executive leadership.

Supply Chain Planning BPO: What’s Driving It and Should You Get On Board?

ToolsGroup

More and more businesses are hopping on the outsourcing bus and letting the experts take the wheel to drive supply chain planning processes. Several years ago ToolsGroup pioneered business process outsourcing (BPO) as an alternative to in-house supply chain planning (SCP). Now Gartner reports that SCP BPO is gaining traction ( Market Guide for Supply Chain Planning BPO or BPaaS, 29 July 2019 ), particularly in North America and Europe.

Three Reasons Why SAP Supply Chain Planning Is a Risk to Your Business

Supply Chain Shaman

High-tech manufacturers in the Silicon Valley of the United States are some of the best at supply chain planning. With changing product profiles, short life cycles, constraints with downstream suppliers, and changing markets, being good at supply chain planning matters. In this tough market being good at supply chain planning is a critical element to be competitive. Getting good at planning requires executive leadership.

Data integrity: Bad data and 3 good things to do about it when supply chain planning

Kinaxis

by Bill DuBois Every business plans, but not every business runs as planned. Delays, shortages, quality issues, catastrophic weather events and fluctuating commodity prices are just a few examples of the exhaustive list of worries that will throw plan into disarray. Achieving a realistic forecast and aligning supply plans is an extreme long shot at best. The best supply chains need to manage business when it’s not business as usual.

Has Driverless Supply Chain Planning Already Arrived?

ToolsGroup

There has been a lot of news about driverless cars, and at the Supply Chain Insights Global Summit there was also some news about “driverless” supply chain planning when two companies described supply chain planning with almost no human intervention. More on this later, but to start, by driverless (whether referring to vehicles or supply chain planning) I don’t mean completely no touch at all times.

Insights into ERP systems in supply chain planning and implementation

Kinaxis

In my interview we discuss how to define enterprise resource planning (ERP) systems in supply chain planning, the reasons why we need ERP systems, problems faced with implementation and how to successfully implement a new ERP system in a corporation. In the interview that follows, William will introduce some key concepts and share insights gained from his extensive experience with ERP systems and supply chain planning. by Dustin Mattison.

System 133

Friends with Fitbits: Fitness tracking and taking supply chain planning to the next level

DELMIA Quintiq

What does this have to do with supply chain planning? In supply chain planning, we are driven by metrics. We focus on reducing miles driven, making a delivery in hours instead of days, minimizing inventories, or increasing the utilization of our workforce. Using manual spreadsheets or even a supply chain planning system that generates reports based only on what took place in the past is a rearview mirror approach.

How Do You Define a Mature Supply Chain Planning Organization? (Part 1)

Supply Chain Shaman

At that time, they planned on spreadsheets. Their goals were lofty, but their understanding of supply chain planning was hazy. In 2006, they made a decision to implement a supply chain planning solution. The cost was 60% more in than average; but even more unfortunate, they never got a good understanding of how to use the planning system. Table 1: Characteristics of a Mature Planning Organization. Tactical Supply. Inventory.

Study Shows Two-Thirds of Companies Yet to Execute Digital Transformation in Supply Chain Planning

ToolsGroup

September 26, 2019) A new study by ToolsGroup, a global leader in supply chain planning software, and Spinnaker, a supply chain services company, has found that only 7% of companies are reaping the benefits of digital transformation of supply chain planning. Drivers of supply chain planning digitization vary significantly by company, with 42% identifying increased operational efficiencies (e.g. PRESS RELEASE.

Study 131

Do Supply Chain Planning systems generate any value?

Kinaxis

by Trevor Miles I have been in the advanced planning and scheduling (APS) space since 1995 when I joined i2 Technologies in Europe. Before that I was in management consulting doing what would be called supply chain design or reengineering today. The key point is that I have spent a lot of my working life focused on the value generated by more advanced planning solutions. Let me start with the confusion between planning and execution.

Friends with Fitbits: Fitness Tracking and Taking Supply Chain Planning to the Next Level

Talking Logistics

What does this have to do with supply chain planning? In supply chain planning, we are driven by metrics. We focus on reducing miles driven, making a delivery in hours instead of days, minimizing inventories, or increasing the utilization of our workforce. Using manual spreadsheets or even a supply chain planning system that generates reports based only on what took place in the past is a rearview mirror approach.

Building a Triple A Supply Chain: Ten Tactics That Work

Supply Chain Shaman

At Supply Chain Insights , as we combed through over 9000 quantitative responses on supply chain management from business leaders to understand what drives supply chain excellence in preparation for the Supply Chain Insights Global Summit , in the process, we proved Hau Lee’s theorem in the Famous Harvard Business Review Article, “Triple A Supply Chains.” First, great supply chains are agile.

How to Measure Inventory Health

ToolsGroup

Financial executives measure inventory health with metrics like inventory turns because they view the firm from a financial viewpoint - such as how much working capital is being tied up. But from an operational supply chain planning perspective, turns is a crude metric because it doesn’t recognize the difference between “good” and “bad” inventory. The concept of inventory health is based on this expectation.

Business Intelligence vs. Inventory Optimization: Are You Solving Symptoms Instead of the Real Problem?

ToolsGroup

In my decades of working in replenishment and inventory optimization, I’ve noticed that many companies seek solutions to symptoms rather than the underlying problem. They want to have an aging report for inventory or a report on vendor performance. Let’s examine the first: inventory aging reports. It’s great to know what inventory is aging and what might need to be written off, marked down or transferred. Too often, inventory levels are a result of human emotion.

Bridge the Gulf Between Supply Chain Planning and Finance

Supply Chain Brain

The majority of manufacturing companies manage planning through two separate teams. The operations team balances supply and demand and calculates future capacity and supply needs. Through such periods the financial and operations plans often diverge, sometimes dramatically. But serving two disparate plans is like driving your car with two GPS navigation devices giving you verbal directions to two different destinations in two foreign languages.

Your supply chain is costing you money – Reason #10 Failure to adequately train your supply chain planning staff

Kinaxis

by John Westerveld Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Reason #2 Poorly executed or non-existent sales and operations planning. Reason #3 Not having end-to-end supply chain visibility. Reason #4 Making key decisions by modelling the supply chain in Excel. Reason #5 Not having a supply chain risk management process.

Time for a Supply Chain Metrics Cleaning

Logility

Wait, it’s not spring; but does that mean you have to wait another eight months to review your supply chain? Often, it becomes necessary to reevaluate how supply chain performance is measured to ensure healthy operations. Ask yourself, “Are your supply chain metrics bogging you down?” However, companies often have too many independent metrics that can cause conflicts amongst competing supply chain functions.

Supply Chain Talk: Why Your Supply Chain Planning Team Isn’t Working

Arkieva

The supply chain planning team is an integral part of a functional supply chain execution (SCE). How an organization is structured can affect the overall supply chain process. In this week’s, Supply Chain Talk, Arkieva CEO Harpal Singh discusses how organizational supply chain planning structures can be improved. ­­­. Supply Chain Planning is similar.

Gaining Clarity on Inventory Effectiveness

Supply Chain Shaman

I was moving from a position where I led a manufacturing operation to being a part of a team to design supply chain software to improve planning decisions. The tension I felt reading the brochure on the plane is what I believe every supply chain leader feels every day. That is one of my primary drivers at Supply Chain Insights. As a team we conduct quantitative research of supply chain leaders to help gain clarity of the answers.

What is a Supply Chain Planning System of Record (SCP SOR), and Do You Actually Need One?

Kinaxis

by Alexa Cheater How many times have you heard about the perils of having siloed supply chain functions? And while working inside your own little box definitely isn’t ideal, it’s also not quite the all-consuming, end of the world type evil that is responsible for single handedly bringing down your entire supply chain. That’s because, in my opinion, very few supply chain practitioners actually want to work in total isolation.

Your supply chain is costing you money – Reason #9: Relentless pursuit of one metric at the expense of other metrics.

Kinaxis

Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Reason #2 Poorly executed or non-existent sales and operations planning. Reason #3 Not having end-to-end supply chain visibility. Reason #4 Making key decisions by modelling the supply chain in Excel. Reason #5 Not having a supply chain risk management process. Inventory needed due to sporadic demand?

Supply Chain Metrics - Gaining Visibility in a Data-rich World

Logility

The second part of Drucker’s quote, “if you can't measure it, you can't improve it,” really brings home the importance of having the right set of metrics. In the field of supply chain management, we have created an abundance of metrics and key performance indicators (KPIs). For the past 30 years I have been involved with multiple efforts to build a set of supply chain metrics and have learned a few things along the way.

Help Supply Chain Planners Be More Successful In These Uncertain Times

Supply Chain Shaman

As I shopped at Best Buy for office supplies, I struggled to not think about the massive disruption of electronics supply chain. The Sam’s Club and Costco shortages of water, toilet paper and laundry products signals one thing for me: the spread of the virus will disrupt every supply chain. As markets shift, supply chains struggle to adjust. The order is a poor proxy for demand and few supply chains have access to consumption data.

Is Inventory Waste or an Asset?

Supply Chain Shaman

Next week is the annual Supply Chain Insights Global Summit , and summit preparation is on my agenda for the weekend. In the preparation phase for the summit, I schedule planning calls with the speakers. This morning, unexpectedly, I found myself in the middle of a debate between my two panelists on the Planning Benchmarking Panel for the Summit. We feel so strongly about this that we do not have an inventory planning role.” Inventory is both.

3 Step Beginner Guide to Supply Chain Planning

AFFLINK

There’s a seemingly endless supply of information out there on supply chain planning, but a lot of it seems to assume you’re already an expert. If you need a crash course in Supply Chain Planning 101, we’ve got you covered. Supply chain management is a big topic. Strategic Planning. Strategic planning involves big-picture, long-term decisions. What will your priorities be throughout your supply chain?

Seven Misconceptions on Managing Inventory in a Market-Driven World

Supply Chain Shaman

When it comes to the management of inventory in value chains, frustration abounds. Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” ” I have been studying the evolution of inventory technologies as an industry analyst since 2002. The supply chain is a complex system with increasing complexity. The Inventory Management Journey.

The Future of Inventory Management

Kinaxis

by Andrew Dunbar This post concludes my inventory management blog series. Throughout this series I’ve proposed an elevated role for the inventory manager that challenges the assumption that an inventory manager is a victim of his colleagues’ business decisions and plays only a limited role in formulating inventory results. Inventory management is not a stand-alone business process that occurs after other processes are complete. General News Inventory managemen

Supply chain inventory optimization – Beyond the analytics

Kinaxis

by Alexa Cheater From designing, sourcing and manufacturing, to distribution and consumption, your supply chain is at the heart of your customer satisfaction levels. But the sheer complexity of supply chain networks, and the impact design decisions have on operational performance, makes supply chain inventory management aligning inventory investments with on-time customer delivery and margins a major challenge.

3 Step Beginner Guide to Supply Chain Planning

AFFLINK

There’s a seemingly endless supply of information out there on supply chain planning, but a lot of it seems to assume you’re already an expert. If you need a crash course in Supply Chain Planning 101, we’ve got you covered. Supply chain management is a big topic. Strategic Planning. Strategic planning involves big-picture, long-term decisions. What will your priorities be throughout your supply chain?

Integrated Planning: Is It Rubbish? Be Careful What You Ask For….

Supply Chain Shaman

It was a long week talking to clients about integrated planning. Most of the Integrated Supply Chain Planning Projects Generate Rubbish. At each location, the team wrung their hands as they told me their stories of “ Integrated Supply Chain Planning.” Good planning requires a clear focus on inputs, data model fit to the business requirements, and outcomes. What is integrated planning? A common plan not one number.