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The modern supply chain is a complex network of suppliers, manufacturers, distributors, and customers, all interconnected and reliant on a shared ecosystem of trust and accountability. Environmental Impact: Reducing emissions, conserving resources, and adhering to environmental regulations.
Transportation, warehousing, and manufacturing collectively contribute significantly to carbon emissions, making these areas critical for meaningful change. Partnering with NGOs, governments, and industry peers allows organizations to share resources, reduce costs, and amplify the impact of sustainability initiatives.
That tightly integrated advanced planning (APS) coupled to Enterprise Resource Planning (ERP) using order data is sufficient. Functional Metrics and the Lack of Alignment to Strategy. Few companies are clear on the number of supply chains they operate, design the rhythms and cycles of each, and align metrics to the strategy.
Scaling manufacturing operations is crucial for business growth but presents unique challenges. Balancing increased demand with consistent quality and controlled costs is difficult but essential for manufacturers looking to expand. Successfully scaling manufacturing requires more than just adding resources.
Flex AI to Support Manufacturing Flow Flex uses artificial intelligence to improve production quality and efficiency in electronics manufacturing. Built-In Sustainability Reporting Some orchestration tools are adding carbon tracking or energy use metrics alongside cost and delivery performance data.
That’s the power of manufacturing data collection. Manufacturing data collection is your secret weapon for boosting efficiency, cutting waste, and staying ahead of the competition. Manufacturing data collection is your secret weapon for boosting efficiency, cutting waste, and staying ahead of the competition.
When a critical Tier-2 supplier is affected by a tariff policy change or regional shutdown, the ripple effects often catch manufacturers by surprise. The ability to pressure-test decisions before committing real resources significantly improves response quality. Metrics must reflect the new priorities.
Supply chain 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.
Resource Management: Efficiently allocating labor, equipment, and storage space. This cost reduction can significantly impact the bottom line, freeing up resources for other critical business initiatives. These practices reduce environmental impact and offer cost savings through lower energy use and better resource management.
At each company, there is a relationship between the metrics of growth, margin, inventory, customer service, and asset strategy. For the purpose of this article, I will use Return on Invested Capital (ROIC) as the proxy metric to discuss asset utilization.) Supply chain excellence was largely defined as manufacturing excellence.
In the fast-paced world of smart manufacturing, making quick, accurate and informed decisions is essential. Real-time decision-making, powered by artificial intelligence (AI) , is revolutionizing smart manufacturing processes. That said, manufacturers need to take several steps to successfully enable these technologies.
Resource scarcity. These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. Time-consuming manual processes to report on ESG metrics. Much of the ESG journey is about conserving resources with smart planning and automation—but you can’t do that manually with spreadsheets.
For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. Align the organization and focus resources on building adaptive modeling capability. (I Currently, I am working on a study to understand the value of synchronizing contract manufacturing with in-house manufacturing and procurement.
However, large organizations are often equipped to handle fulfillment in-house, leveraging their extensive resources and capabilities. Ability to Meet Fulfillment Goals According to the survey, only a mere 1% of respondents achieve 80% or higher for their OTIF metrics, with the average percentage of OTIF being a mediocre 62.21%.
Next, prioritize projects based on their potential impact and available resources. Finally, establish standardized data collection procedures across all relevant departments, ensuring consistent measurement and reporting. Analyzing performance trends helps you find areas to improve across your supply chain.
There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. In fact, many companies move backwards—like Campbell’s Soup or Kellogg—when they try to implement a large project with too few resources too fast. Aligned Metrics. ” Yes, I said.
Ibrahim Al Syed, the director of digital manufacturing at Celanese, was surprisingly forthcoming about how Celanese developed these capabilities at ARC Advisory Groups 29th Annual ARC Industry Leadership Forum. The company has 55 manufacturing sites across the world. Can I have an industrial Google at a manufacturing facility?
manufacturers have spent the last few decades consolidating production at gigantic offshore plants, especially in China. Such a model, based on prioritizing unit economies and production at scale, doesn’t prepare manufacturers and retailers for the waves of disruption that are washing over global supply chains today.
In manufacturing, performance improvement, cost reduction and process optimization are crucial. Manufacturers have adopted innovative solutions and technologies to deal with these issues. There is no question that AI and ML will have important roles in shaping the future of manufacturing ERP. What is AI and ML?
Throughout the supply chain, the use of metrics to track and understand processes provides an invaluable resource for ensuring increased production and customer satisfaction. What Distribution Center Metrics Need Tracking? However, the most important metrics can be categorized into the following eight areas. Cycle Times.
When it comes to supply continuity, being proactive about mitigating disruptions is essential, yet many procurement organizations may still lack sufficient resources. For example, consider the challenges in the automotive industry that stem from the supply chain issue in chip manufacturing. Tracking the Metrics that Matter.
As regulations across the globe strengthen, the pressure to collect, report, and organize emission-related metrics has never been higher. Across the globe, requirements for stricter reporting on complex metrics are increasing. If the resources and software are applicable, automate as much of your data collection as possible.
Keeping track of all your moving parts in manufacturing is a tall order. That’s where manufacturing inventory management software comes in. In this ultimate guide, we’ll break down everything you need to know about manufacturing inventory management software. Spreadsheets just don’t cut it anymore.
This blog explains The Key MRP Metrics in Supply Chain whcih every supply chain professional in Manufacturing or Distribution Businesses. This is a fundamental principle of supply chain management, it constitutes a juggling act that is at the heart of any well-orchestrated manufacturing process.
As with the logistics category where we featured 15 most popular blog posts vs. the 10 we covered in the top manufacturing blog posts and supply chain blog posts , we write so many transportation blog posts in that category, we are going to feature the 16 most viewed transportation blog posts. Read the Full Blog Post. Read the Full Blog Post.
SCM is focused on efficiency, throughput, and resilience across a much wider operational footprint and requires coordination between manufacturing, logistics and supply chain, and demand planning teams to ensure timely fulfillment and quality assurance. However, automating the contract lifecycle can free up resources and ensure consistency.
Contract manufacturing or 3PL data often will have a 24-hour latency due to batch integration. When they built the project, they did not realize that they did not have access to daily data daily for their third-party warehouses and contract manufacturing locations. 2) Latency. 3) Granularity. Master data. The devil is in the details.
Sustainable manufacturing has become essential for manufacturers to maintain customer loyalty, win new business, and remain competitive in today’s supply chain based marketplace. In the past, manufacturers were slow to set goals in this area. Sustainable manufacturing also enhances employee, community, and product safety.”
Faced with continuing inflation, manufacturers are seeking strategies to contain per-unit costs while maintaining margins. Compounding the challenge are information gaps across supply chains that can cost manufacturers lost time, productivity, margin erosion, price reductions, and missed shipment dates.
According to the UN Environment Program’s Food Waste Index, 923 million metric tons of food is wasted globally every year. Besides being a waste in precious resources, this quantity of wasted food also contributes to 8-10% of greenhouse gas emissions, making it actively detrimental to our environment. Enable Sustainability with DELMIA.
Optimization engines to improve functional metric performance resulted in an exploding number of planners. Contract Manufacturing Signal Latency. In my last blog post, I shared insights on data synchronization between brand owners and contract manufacturing. On average, it takes 2.8 On average, it takes 2.8
The second step is usually a large implementation of a technology project–Enterprise Resource Planning, Customer Relationship Planning or Analytics. The second generation of solutions were built and marketed by Enterprise Resource Planning technology companies like SAP and Oracle. I am speaking at their global kick-off.
The ability to ensure product quality is the cornerstone of a manufacturer’s success. By integrating quality into every step of the manufacturing process, companies can cut the production costs associated with rework and scrap, as well as lower the risk of recalls and potential litigation over defective products.
And the manufacturing sector is no exception. In fact, the National Association of Manufacturers (NAM) observes that by “leveraging data and enabling greater efficiency, AI in manufacturing will improve communication, increase collaboration across disciplines, and stimulate innovation.” Improve machine yields and rates.
These platforms can dynamically adjust the difficulty of tasks, provide targeted resources, and suggest personalized learning paths based on real-time performance data. MTSS platforms support the development of these analytical skills by integrating advanced tools and resources that allow learners to engage with real-world data sets.
Where and how manufacturers make products for Americans will change in 2017. Manufacturers must adapt to changing demands, or they will become nothing more than a statistic in history books. The "First Five" Industrial Manufacturing Trends of 2017. The "First Five" Industrial Manufacturing Trends of 2017.
ARC Advisory Group, where I work, recently announced the publication of their analysis of the 25 manufacturers with the most mature digital transformations. In fact, their digital champions began by aggressively expanding their sources of wisdom beyond their historic and current resources. This is the inaugural edition of the report.
In the case of reverse logistics, the resource goes at least one step back in the supply chain. For instance, goods move from the customer to the distributor or to the manufacturer. When a manufacturer’s product normally moves through the supply chain network, it is to reach the distributor or customer. Imagine this scenario.
There can be surprises that potentially offer a better upside: demand is higher than expected, it is possible to raise prices without affecting demand based on what is happening with competitor products, technology has allowed manufacturing capacity to ramp up faster than expected, etc. E2open acquired BluJay Solutions in May of 2021 for $1.7
Big enterprises might not be that open to innovations but are hypersensitive to cost and resource savings. Each industry has its peculiarities, among the others, in the logistics, manufacturing, and supply. It also reduces your resources and improves processes. The cloud-based logistics has lots of metric tools.
When we think about the critical requirements for a manufacturer to succeed, productivity, quality, and inventory management immediately jump to mind. But another factor can play an equally strong role in making or breaking a manufacturing business: communication. Design-Through-Manufacturing Efficiencies.
Companies moving to BPO in these practice areas are experiencing supply chain improvements in metrics such as inventory turnover and customer service. An outsourcing vendor can be used at the entity to share best practices, recommend and implement new methodologies, and train resources. Those companies also reduced planning spend.
In manufacturing-based companies, 70-80% of costs are in the processes of source, make and deliver. We analyzed the impact of 150 factors on 493 financial metrics for the period of 2004-2016. ” …or a single instance of Enterprise Resource Planning (ERP) drives better results. Is talent a cost or an asset?
An Enterprise Resource Planning (ERP) system is a suite of integrated software applications that helps organizations manage and automate their core business processes. By integrating with the financial and manufacturing modules, SCM enables better demand forecasting, inventory optimization, and faster time-to-market.
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