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How CPG leaders can reduce costs without hurting supplychainperformance fbaker Tue, 06/03/2025 - 09:18 In the consumer packaged goods (CPG) industry, SG&A (Selling, General, and Administrative) costs have long been a go-to target for improving margins. But today’s market is anything but typical.
This article will examine the challenges Belcorp faced with managing its extensive product range and complex supplychain and how our solution set, which includes Service Optimizer 99+ (SO99+), Demand Planning, and the Multi-Echelon Inventory Optimization (MEIO) model, transformed their operations. It played out as follows.
A study by E2open – the 2021 Forecasting and Inventory Benchmark Study: SupplyChainPerformance During the Covid-19 Pandemic – provides the answers. The company provides demand and inventory planning solutions based on a public cloud architecture. I look forward to this study every year.
Now consider that by not optimizing your inventory from a global vantage point you may be creating, if not outright chaos, a much less efficient network than you could have. There are many pieces of the modern manufacturing supplychain. The basic approach to inventory optimization.
Speaker: Robert Olszak- Vice President, Global Supply Chain Optimization, RGP
The global logistics market is growing, and companies need to prepare for the next generation of supplychain management. Cutting-edge technology allows for the envisioning, designing, and testing of your supplychain's resilience in the face of various hypothetical "attacks."
Richard Lebovitz and Joe Lynch discuss leading inventory attack teams. Richard is the CEO of LeanDNA , a purpose-built analytics platform for factory inventory optimization. About Richard Lebovitz Richard Lebovitz is the CEO of LeanDNA , a purpose-built analytics platform for factory inventory optimization.
Safety Stock: Navigating SupplyChain Volatility Through Strategic Inventory Planning Demand volatility represents a critical challenge for supplychain executives today, with safety stock emerging as a key strategic tool to mitigate market uncertainties.
During the 2024 holiday season, it reduced unnecessary package movement and shortened delivery distances by leveraging AI to strategically position inventory closer to customer locations. Walmart has implemented AI to enhance inventory forecasting. For example, Amazon uses AI to optimize delivery logistics.
But then, supplychain 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.
Despite these challenges, integrating supplychain planning into your corporate strategy isn’t just an operational imperative — it’s a critical strategic move that can drive your supplychainperformance forward. Establishing Shared KPIs Shared KPIs act as a bridge between strategy and operations.
Advanced supplychain planning is being transformed by probabilistic forecasting , which revolutionizes demand forecasting, supply planning, and inventory optimization. Enhancing Inventory with Probabilistic Forecasting A supplychain is a complex ecosystem influenced by dynamic variables.
AI Deployment in Operational Context Artificial intelligence has become a common feature in supplychain systems, though the depth of adoption varies widely. Among Tier 1 retailers and logistics service providers, AI is embedded in planning, inventory control, and exception resolution. shifting macroeconomic indicators).
In the fast-paced world of modern supplychains, traditional forecasting methods fall short. Probabilistic forecasting is revolutionizing demand forecasting, supply planning, and inventory optimization by significantly improving forecast accuracy and decision-making across distribution networks. The result?
According to Deloitte Insights , 83% of digitally maturing companies use cross-functional teams to improve supplychainperformance. Of course, the right training is key to the success of such initiatives, and can have a measurable impact on supplychainperformance.
To maintain high performance under pressure, food logistics leaders need to adopt modern tools and strategies that enable proactive planning, real-time visibility, and agile execution. In today’s competitive landscape, AI-powered solutions are quickly becoming essential to optimize food supplychainperformance and meet demand with precision.
Yawn and walk on if the answer is i mproving demand error or reducing inventory levels. On December 5th, SupplyChain Insights is hosting a small event at Georgia Tech to share the results of a two-year research effort to connect financial metrics by industry to supplychainperformance to drive value.
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.
In modern distribution networks, meeting service levels requires getting precisely the right inventory to the right locations at the right time. Today’s most successful businesses derive significant profit from “ long-tail ” products that traditional forecasting struggles to manage.
Most companies are still trying to use Excel to optimize their inventories. SupplyChain Insights’ 2018 Inventory Optimization Technologies Study suggests the number may be as high as 75%. Global supply and demand networks. Much of inventory is a hedge against uncertainty. Frequency of placing supply orders.
When asking the question, “How does machine learning improve supplychainperformance?” Furthermore, LoweBot is able to assist with inventory monitoring in real time, which helps employees detect patterns that might guide future business decisions. In 2015, IBM acquired The Weather Company.
In this scenario, by adopting an adaptive supplychain, the retailer uses real-time data analytics to identify emerging trends and collaborate closely with suppliers to quickly adjust production and inventory levels to meet customer demand. Where do companies start their journey towards Adaptive SupplyChains?
The latest study highlights opportunities for businesses to strengthen resilience with artificial intelligence (AI)-driven demand sensing to optimize inventory, realize more value from planning investments, and better serve clients during disruptions of any size. Orlando, FL – October 2, 2024 – E2open Parent Holdings, Inc.
Is cost reduction all that there is in measuring SupplyChainperformance? 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. Review Inventory turns and Return on Assets.
As companies across industries have discovered, a well-optimized supplychain can drive significant improvements throughout their operations. In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times. Measuring SupplyChainPerformance You can’t improve what you don’t measure.
Editor’s Note: Last year ToolsGroup became Microsoft’s partner for Multi-echelon Inventory Optimization (MEIO) in Industrial accounts. Microsoft and I collaborated on a blog introducing the basic concept of MEIO, comparing it with Inventory Optimization. The basic approach to inventory optimization.
It comes in many flavors–increase in inventory, changes in sales policies, new product lines– all add to the complexity. Supplychains have not morphed to manage the complexity at the same cost, quality and level of customer service. Cycle Management is Stalled.
As a supplychain leader, he is struggling how to dance in the ring of fire. The ring of fire is corporate politics at the executive level on supplychainperformance. Each executive has a different perspective on the definition of supplychain excellence, but they are never discussed and aligned.
The life sciences are integral to the quality of life and lifespan, but the field faces some uniquely difficult inventory challenges. Once you’ve created a digital twin of your physical supplychain, you can manipulate and experiment with the data.
Causal AI and the SupplyChain Jerry Stephens , General Manager of SupplyChain Management at causaLens, argues that Causal AI is becoming a necessity for smooth supplychain operations. He explains, “Prediction is at the core of running an efficient supplychain.
The impact of complexity on inventory is not quick. To help, today I want to share some of the insights from our recent Inventory Optimization study. Inventory management is a hot issue. Companies invest in project after project, yet inventory levels remain the same. Supplychain processes are now over 30-years old.
Instead, what I observed when I looked at the data, was that most companies that I had worked with (in my role as an industry analyst, I had worked with over 300) were going backwards on margin and inventory turns. The rise in complexity happened faster than supplychain leaders could improve supplychainperformance.)
On the 2nd of April, I sat before a board discussing how a company could exceed expectations in the delivery of Return on Invested Capital (ROIC) and superior operating margins and fail at the delivery of customer service and inventory. Supplychain matters more, but it is understood less and less.
Our retail and supplychain planning suites empower a new level of intelligent decision-making and unlock powerful business improvements in forecast accuracy, service levels, and inventory – delighting customers and achieving financial and sustainability KPIs.
import volumes still climbing (see Figure 1), limited processing capacity at key West Coast ports and the International Longshore and Warehouse Union (ILWU) contract expiring next summer, importers will be scrambling to maintain the inventory they need to support the demand increase.
Supplychain optimization software tracks items as they move through your supplychain and generate alerts at important points to improves decision-making and enhance visibility across the supplychain by integrating various capabilities like procurement, inventory, and customer relationship management.
However, the lag in the Sales and Operations Planning (S&OP) cycle exacerbates issues like inaccurate forecasting, reduced agility, higher error rates, increased costs, limited scenario planning, and sustainability challenges, ultimately undermining supplychainperformance and eroding executive confidence in the supplychain as a value driver.
A post from June discusses how the pandemic has disrupted supplychains focuses on the rapid deceleration and subsequent acceleration of economic activity and the friction of getting back up to speed. Supply shortages, low inventory to sales ratios, and hiring lags are noted as factors at play. Yesterday, the U.S.
Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies. For many companies starting a demand-driven journey, adopting SanDisk’s customer-centric strategies would be a great starting point to improve supplychainperformance.
For businesses with seasonal inventory, estimating yearly demand fluctuations with reasonable accuracy can be both challenging and costly. After all, over-estimating can lead to inventory surplus and associated warehousing costs. This is where predictive analytics can prove instrumental for strategic supplychain management.
The domain business services are, for example, order, inventory, load building forecast, cross stock, and flow through. We are now able to, for instance, for your warehouse solution, add two microservices, one for inventory availability and the other for decisioning around where you should source inventory from.
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.” The supplychain is a complex system with increasing complexity.
The supplychain is a complex non-linear system. At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. Table of Performance. Companies struggle to maintain focus and drive discipline to build balance sheet results. Was this by design? My reasoning?
What is Vendor Relationship Management (VRM) and Why It’s Essential for Your ERP and Inventory Software? Strong vendor relationships are critical for business success, especially when it comes to managing inventory and procurement. Multi-Location and Performance Tracking: Managing vendors with multiple locations becomes seamless.
Strangely, in the last decade, while companies had the opportunity to use technology better, supplychainperformance declined. Only four percent of companies compared to their peer groups improved balance sheet performance of growth, operating margin, and inventory turns. Days of Inventory Comparison.
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