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Background Most of the clients that I am working with are working on two large supply chain initiatives: Implementation of SAP RISE and Compliance with the EU Digital Product Passport initiative. In today’s architectures and functional metrics, value optimization does not exist. You are right. This work was expensive.
Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Do Invest in Distributor Capability Building : Provide training, digital tools, and performance incentives. A well-equipped distributor is an extension of your brand and a key to market penetration.
There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. Aligned Metrics. What percentage of retail out-of-stocks could be prevented by the manufacturer in these industries? What does an investment in SAP mean for a company?
Avoid implementing Aera on top of an existing SAP APO implementation.) Advanced planning evolved with a focus on modeling manufacturing constraints. Initially, the output was published to procurement to design strategic buying strategies. Procurement became an island–isolated from the demand signal except for MRP.
It was funded by 50 large consumer products manufacturing companies (CPG). In the dawn of e-commerce, conservative manufacturers, anteed up $240 million in four months. In the height of the e-commerce craze, the marketplace offerings started with a focus on e-procurement. The stories border on the ridiculous.
Driving decarbonization with technology In 2023, the SAP CPO Think Tank community has been closely examining how companies can accelerate supply chain decarbonization. This blog highlights key strategies from these recent forums on sustainable procurement and practical tips to achieve impactful results. How can technology help?
We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups. Reward teams for cross-functional metrics. What did we find?
The first story is about a large regional food manufacturer. The first in the 1990s was Manugistics, the second in the early 2000s was SAP APO, and now their solution is SAS. The second story is about a regional beverage manufacturer. I have changed the names to provide anonymity. Let’s Be Customer Centric. The answer?
Last week, after booking an additional $1B in unexpected supplier costs in the third quarter, the CFO led the company’s focus on restructuring to “support efficient and reliable sourcing of components and internal development of key technologies and capabilities.” What is the issue? These capabilities do not exist at Ford.
Businesses often use it in retail and purchasing. Category management isn’t just another procurement trend. It’s a way for companies to group similar goods or services (like IT infrastructure, facilities, or raw materials) and manage them holistically instead of handling every purchase in isolation.
The goal of this blog is to help business users maximize their current SAP Investments in a time of change. High-tech manufacturers in the Silicon Valley of the United States are some of the best at supply chain planning. For SAP users, it is the best and a much needed system of record. Reflections. Here is my advice.
Source Merriam-Webster Dictionary. They are step change requiring either the redeployment of existing technologies or the purchase of new platforms. While SAP has purchased SmartOps and is marketing a demand sensing/demand translation offering, I have not been able to validate the solution through references.
My first digital supply chain presentation was in Milan at an SAP Insider conference in 2012.) The fear is the readiness of adoption of a laggard industry where only 3% of manufacturers are early adopters. The primary investments are in networks of limited capabilities based on EDI, and indirect procurement spend management.
The goal of this blog is to help business users maximize their current SAP Investments in a time of change. High-tech manufacturers in the Silicon Valley of the United States are some of the best at supply chain planning. For SAP users, it is the best and a much needed system of record. Reflections. Here is my advice.
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). At Rockwell this includes all processes end-to-end except for manufacturing.
The most interesting thing that Blue Yonder is doing from an OMS standpoint is driving promising and pre-sourcing to retailers. The data is all anonymous, but retailers can look at metrics such as time to fulfill, pack time, conversions, and ship versus pick-up, to name a few, across hundreds of Active Omni customers.
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). At Rockwell this includes all processes end-to-end except for manufacturing.
At the time, DuPont, now acquired by DOW, boasted externally on internal adherence to SAP standardization for decision support. Notice how the water turns from blue to brown in Figure 3 with the lack of demand translation capabilities within the enterprise for manufacturing and logistics. Let me explain. Mistake #3. My challenge?
The second generation of solutions were built and marketed by Enterprise Resource Planning technology companies like SAP and Oracle. Tomorrow, I get to deliver this message to a large manufacturing client. In addition, I am now done with the page proofs for my new book, Metrics that Matter. The book is a story.
Infor’s CEO, Kevin Samuelson Infor’s strategy for differentiating their business from competitors like SAP and Oracle rests on a truly differentiated approach to ensuring that their customers get ongoing value from the business applications they purchase. Infor, with anticipated revenues of $3.4
The number one question that I am asked today by manufacturers across all industries is “How can I improve customer service?” A common issue in financially-driven companies is the heavy utilization of manufacturing assets past reasonable limits throwing the supply chain out of balance. Background. 4 Maximize Buffers.
The larger the organization, the more tension with conflicting functional metrics making decisions more difficult. Note in Figure 1 the gaps from recent research between supply chain planning and manufacturing, logistics, and sales. The gap between logistics and procurement; and logistics and customer service increases process latency.
As an analyst in the supply chain market for 15 years, I have written many articles on best-of-breed technology companies purchased by a larger company. While ToolsGroup and SAP (with the acquisition of SmartOps) are the nearest competitors, Terra prided itself on delivering better decisions through better math. The Path Forward.
Demand sensing involves the use of the external data sources – particularly the latest sales and market data – to improve short-term forecasting and then be able to use that improved understanding of consumer behavior to improve their supply planning. These codes were put into SAP after an order cut had occurred.
Today, 7% of order and purchase order flows move through business networks. The event will be invitation only for fifteen manufacturers and fifteen technologists. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters. The gaps are large.
The traditional manufacturing job defined the middle class. Each time, I turn on the channel, manufacturing jobs frame the global debate. Ironically, as global manufacturing jobs decrease, there is a need for talent for the global supply chain. While sourcing roles are more aggregated, channel support is usually regional.
The majority of manufacturing and retail companies want better performing supply chains. My view is that both SAP and the large consulting organizations perpetuate a very functional view of supply chain management which is detrimental to building effective value networks. A Critical Review of the Contract Manufacturing Model.
” At the other end of the continuum is the argument that “ Forecast error is the most important metric to improve.” I also worked in manufacturing during the period of 1978-1992 trying to plan demand. Test new solutions against the traditional demand sensing providers of E2open (Terra Technology), SAP and ToolsGroup.
However, in the polling data in the APICS webinar, we found that over 70% of the respondents had deployed solutions from the ERP-expansionists (either SAP or Oracle). Today, SAP and Oracle have market share dominance; however, the data is clear. The research is a study of large manufacturers. The answer is interesting.
Shipping approximately 400 million selling units consisting of 700 million manufactured units per year, Carter’s employs about 4,000 employees at its peak. The company leverages globally sourcing strategies to buy products at a lower cost and then deploys some unique process logic to drive mass customization for retailers.
SAP Announces Second Quarter and First Half Results 2013. Here are some additional details from the press release: Data Services data sets will include mode-specific transportation costs and transit times, facilities cost estimates, demographics, risk metrics, duties and taxes, sustainability metrics and others.
It senses, translates, and orchestrates market changes (buy- and sell-side markets) bidirectionally with near real-time latency to align sell, deliver, make and sourcing functions. When this happens, there is greater balance between metric trade-offs and resiliency in year-over-year improvements in corporate performance.
49% That was the ownership share of product returns specialist Inmar Post-Purchase Solutions (IPPS), a joint venture between Doddle—a part of Blue Yonder—and Inmar, Inc. metric tons of CO2 equivalent per million USD in revenue, down 58% from FY09 levels, despite daily package volumes rising by an average of 121%.
Lockdown of cities and manufacturing plants have significantly impacted many industries’ supply chains. Being customer-centric enables companies to improve sustainability and uplift manufacturing through higher quality products and strengthen logistics, which results in higher levels of on-time deliveries. Oxford Economics & Sap.
I think that IBM, HP, Microsoft, Oracle, SAP and Teradata are victims today in the information technology sector. He discussed the adoption of the steam engine and the electric motor in the manufacturing sector. Today, we take these technologies for granted, but the electric motor was the genesis of the horizontal manufacturing plant.
It matters not what your metric is, you get the same results: too much of our trade spend goes down the drain, doesn’t it? Converting big data to usable insights can only really be accomplished through a digital path to purchase and an infusion of that technology and intelligence into the trade promotion planning and execution processes.
Despite the fact that the cost of memory decreased a million-fold in 55 years, the majority of supply chain solutions use relational databases from vendors like Oracle, SAP or Teradata. Hadoop is an open-source software framework written in Java for distributed storage and processing of large data sets on computer clusters.
Key components of mobile inventory management include: Smartphone app: Allows field agents to log information, analyze metrics, and manage tasks even in remote areas with limited connectivity. It puts you in control of your stock, allowing for optimized inventory levels, better demand forecasting, and improved purchase planning.
IBM is good at manufacturing terms that we both hate and love. In a similar vein, SAP Hana has a huge marketing machine behind its launch, but I question if the price is worth the value. In the commercial world of sell, deliver, make and source processes, we do not have the time or money to fund data scientists.
Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” We are systemically evaluating each industry in the Supply Chain Insights Metrics That Matter series of reports. At Supply Chain Insights , this is our passion.
He explains, “The circular economy aims to eradicate waste — not just from manufacturing processes, as lean management aspires to do, but systematically, throughout the life cycles and uses of products and their components. Simulate the CO 2 footprint of the plan through procurement, production, and transport. ” Implement.
If you’re looking into ERPs, you’re likely to come across providers like SAP, Sage, Infor, Netsuite and Microsoft Dynamics 365. It’s a combination that provides real-time inventory tracking, from purchase to warehousing through to the sale and delivery of products. ERPs are a good choice for companies wanting a business-wide solution.
It hasn’t been too long ago that a typical consumer products manufacturer rep would replicate last year’s plan, make any adjustments for an account’s expanded stores, new markets, or new product launches, and dub it the new current year forecast. It was a tedious effort, but, overall, rather easy. Ah, those were the days! Just a nuisance.
Such systems are also instrumental in establishing aligned tactical and strategic performance metrics systems that drive improved economic outcomes (Bendoly et al., ERP systems are designed to integrate transactions from finance, human resources, procurement, operations, sales and marketing, logistics, and other functions in a firm.
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