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Reason #4 Making key decisions by modelling the supplychain in Excel. Reason #5 Not having a supplychainriskmanagement process. Reason #6 Not effectively managinginventory. Reason #7 Making decisions based on bad data (supplychain data accuracy).
Leading organizations are building supplychains that are less exposed to single points of failure, more informed by real-time data, and more able to adjust sourcing, inventory, and routing based on current conditions. AI is helping companies better detect risk, model alternatives, and make faster decisions with more confidence.
Sure, supplychain cost reduction is important in reducing the cost of goods sold (COGS) and increasing profit, but there are other measurements which should not be forgotten. 3 Key Metrics for Measuring SupplyChain Performance Beyond Cost Reduction. Review Inventory turns and Return on Assets. Read more.
Over the past two years, I’ve written extensively about the growing importance of supplychainriskmanagement and supplychain mapping. See for example: Rethinking SupplyChainRiskManagement. Doing Nothing on SupplyChainRiskManagement.
Unfortunately, most supplychain executives and their teams focus predominantly on just two factors, the tradeoffs between cost and service, with risk rarely entering the conversation — until a disruption occurs and then everyone goes into panic mode. And the first step is asking “What are the risks?”
Reason #4 Making key decisions by modelling the supplychain in Excel. Reason #5 Not having a supplychainriskmanagement process. Reason #6 Not effectively managinginventory. Reason #7 Making decisions based on bad data (supplychain data accuracy).
While procurement operates as a function within the broader supplychain, it has its own set of priorities for strategic sourcing in procurement, performance metrics, and specialized processes. At the enterprise level, this means developing structured supplier management programs that go beyond transactional buying.
Our preliminary findings suggest that supplychain resilience has been increasing in importance over time, but still remains secondary to the end goal embedded in the perfect order metric – the right product, to the right place, at the right time. However, supplychain resilience is more than just a concept to practitioners.
A common challenge for procurement and supplychain professionals is obtaining support from C-level leaders to invest in a robust supplychainriskmanagement (SCRM) program. But to make their strongest case, SCRM advocates need to focus on one key metric: return on investment. Contact us today.
Reason #3 Not having end-to-end supplychain visibility. Reason #4 Making key decisions by modelling the supplychain in Excel. Reason #5 Not having a supplychainriskmanagement process. Reason #6 Not effectively managinginventory. I’ll tell them what they are getting.”This
For some customers, they manage the inventory using a vendor managedinventory program. In some case they manageinventory at the customer’s site. “We We don’t have one supplychain,” this vice president of supplychain explained to me, “we run very customized supplychains.”
The value network of suppliers and logistics providers is largely managed by spreadsheets and email with no system of record for interactions. What is RiskManagement? Impact of SupplyChain Disruptions. The most advanced riskmanagement programs are deeply rooted in preventive measures.
Subscribe to SupplyChain Game Changer. SupplyChainRiskManagement is a Cirque Du Soleil Calibre Act! In today’s world, supplychains are more important than ever. In fact, 89% of businesses encountered a supplier risk event in the last five years. Subscribe Here! Email Address.
Throughout the supplychain, IoT devices monitor products as they move, tracking critical factors including transportation conditions and environmental parameters. In retail environments, IoT-enabled systems manageinventory levels and provide feedback about stock conditions, further enhancing the DPP’s accuracy.
Industry professionals have put in tireless hours and taken strategic measures to keep the supplychain moving and meet customer demand. Such measures include communicating with suppliers and customers , using demand shaping to overcome inventory shortages, seeking additional suppliers, and building more onshore facilities.
This section will cover JIT and outsourcing by Apple Inc, SupplyChainRiskManagement by Cisco System, Technology Roadmap by Intel, SupplyChain Network Model by HP, Mass Customization by Dell and Quality Management by Sam Sung. Dell is one of the classic supplychain case studies of all time.
With 30% of respondents indicating their organizations are suffering from an inability to assess risk across suppliers, many are investing in new strategies to minimize the frequency and impact of disruption. Effective supplier management will be agile enough to identify disruption and the impact it will have on suppliers and take action.
Such risks are on the rise. There is a constant push to free up working capital by leaning down on the inventories. Linear supplychains as we know them are turning into supply networks with more players and parties than ever before. Companies are spending more on outsourced products and services than in the past.
Indicated in the report summary was: “ The sustained growth in the logistics industry continues to be fueled by high levels of inventory and the associated levels of cost and utilization associated with holding them. According to the September report , growth is increasing for inventory levels, inventory and warehousing costs.
Unfortunately, most supplychain executives and their teams focus predominantly on just two factors, the tradeoffs between cost and service, with risk rarely entering the conversation — until a disruption occurs and then everyone goes into panic mode. And the first step is asking “What are the risks?”
If you were to add a subtitle to every supplychain professional’s job description it would be RiskManager or Risk Mitigator. What are some of the biggest supplychainrisks companies face today? Do we have the right Service Level Agreement metrics in place? At what cost?
You can use network design models, company KPIs and other metrics to get a holistic look at your supplychain. Examples: moving inventory to alternate locations, changing supplier relationships. Visualization tools linked with supplychain models give you quick, aggregated views of the supplychain whenever you need it.
Those with a proactive approach have proven themselves to be ahead of the curve and able to prove results not just in savings, but across other key business metrics. Conventional thinking about supplychains and supplier risk is outdated. Conventional Thinking is Outdated. How Do You Monitor?
My inventory levels? The list goes on… we’ve only barely scratched the surface of the types of what-if analysis that supplychain professionals try to do every day. The challenge supplychain planners and analysts face every day is that the tools they are provided really don’t support what-if analysis.
no metrics, operate in functional silos). Simply put, if you don’t understand the root causes of poor supplychain visibility, you won’t know what corrective actions to take. Quantify the financial impact of poor supplychain visibility. Quantify the financial impact of poor supplychain visibility.
Interestingly, the downshifts we observed in transportation metrics were much more muted in the last week of July, leaving open a possibility for a bit of recovery as we move towards peak season. Warehousing and Inventorymetrics continue to buoy the logistics sector. Additional SupplyChain Matters Perspectives.
Several articles and reference books have highlighted Joe’s procurement transformation accomplishments at Lucent Technologies, Juniper Networks, and in the area of SupplyChainRiskManagement. We must be able to manage our supply base transparently and efficiently.
At LogiChem, attendees interacted through roundtables and panel discussions on topics that identified best practices around inventory and supplychainmetrics, third party logistics provider (3PL) management, rail logistics strategy to combat the driver shortage dilemma, and a host of other topics.
Supplychain planning and response management technology provider Kinaxis announced this week the completion of the acquisition of MPO , a provider of a B2B SaaS based platform supporting multi-party orchestration of order fulfillment, inventory and transportation services management.
After all, how can you run a supplychain without it? Changes in demand, late shipments, quality issues, point of sale, weather patterns, production schedules and projected inventory positions are just some of the myriad of things you want to be able to see so you can make better and more informed decisions as a supplychain executive.
Covid-19 has changed the SupplyChain operation and it impacted what manufacturers produce, what they use to produce things and how they produce thus in a domino effect, impacting the distribution and delivery of the goods. Manufacturing has been a two headed monster in the disruption of the supplychain.
SIM encompasses dynamic processes that enable organizations to track suppliers, evaluate their performance and review and perform activities such as supplychainriskmanagement. Keep reading to find out how your organization can benefit from Supplier Information Management.
In this blog I will focus on first couple of sub process of demand planning cycle - 1) Setting up demand planning objectives and metrics for different business units/customers/key items/locations 2) Setting up the frequency of the forecasting process (create/review/publish) with the time horizons. SupplyChain Planning & Forecasting (59).
That in-turn raises the challenge of the ability to manageinventories across cross-channel commerce, along with the ability to position and deploy inventory to the most profitable channel and associated store outlets. Enterprise Asset Management: IT Asset Management (57). SupplyChain Planning & Forecasting (59).
As a result, organizations end up either under stocked (that leads to lost customers) or overstocked (leading to unwanted inventory carrying costs). It is imperative then, that companies can no longer bank on traditional solutions that only track inventory and its associated cost within the companys boundaries. Generic SCM (130).
Demand planning is the most critical process in the CPG industry, since it drives all downstream processes (raw material/finished goods inventory planning, procurement planning, capacity planning, manpower planning, transportation planning, etc.) Enterprise Asset Management: IT Asset Management (57). Generic SCM (130).
Lean speaks of the seven wastes: overproduction, unnecessary transportation, inventory, motion, defects, over processing, and waiting. They supplyinventory to support the next week or two of a plant’s production schedule. Inventory is shuttled from the warehouse to the plant on a just-in-time, just-in-sequence basis.
Why a SupplyChainRiskManagement Framework is Needed A supplychainriskmanagement framework is critical for risk identification and effective management of the inherent and imposed risks in today’s business environment.
Supplymanagement teams should be on the ready to receive notices, triage event impacts on the business, and rapidly engage supplier managers to investigate causes and cures. Leverage available event-sensing technology and have in place a disciplined, cross-functional supplychainriskmanagement governance structure.
This included: Developing playbooks and contingency plans to address your most pressing risks. Evaluate structural changes in your supply base that could reduce risk exposure. Go digital: Explore the potential of dedicated supplychainriskmanagement solutions.
InventoryManagement and Optimization Optimization and management of inventory is the ability to ensure product availability through inventory administration activities such as demand planning, stock optimization, and monitoring the age of the product. This is a very well-known material management objective.
Then, he writes, “Once these essential supplychains are identified, government officials should work with relevant business leaders to audit these networks, map them, and identify knowledge gaps. Many firms already dedicate considerable resources to supplychainriskmanagement and data analytics.”
“OPEC and 10 producers outside the cartel, including Russia, agreed late last month to continue holding back nearly 2% of crude production from the global market through the end of [2018]…with the aim of alleviating a supply glut that has plagued oil markets since 2014,” according to a recent article in the Wall Street Journal.
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