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I laugh when business leaders tell me that they are going to replace their current supply chain planning technologies with “AI.” Each supply chain planning technology at the end of 2024, went through disruption–change in CEO, business model shift, layoffs, re-platforming and acquisitions. You are right.
Historically, supply chain leaders managed supply chains in a world of abundance. There are many factors: war, supply shortages, climate change, labor (knowledge and availability), and shifts in governmental regulation. The waste included: Negative Forecast Value Added (FVA) in demandplanning. What does this mean?
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. As industries evolve and global markets expand, ethical considerations have become central to supply chain compliance.
In today’s interconnected global economy, sustainability within supply chains and logistics has become a necessity rather than an option. Regulatory demands, rising consumer expectations, and global challenges such as climate change and social inequality have made sustainable practices a strategic priority.
However, as carbon taxes and emissions reporting requirements continue increasing, supply chain professionals face mounting pressures from inside and outside their organizations to measure and improve performance against new, nebulous sustainability metrics. Sustainability is high on the list of favorite corporate buzzwords.
According to research by Ernst & Young LLP, the global consulting firm, as the Covid crisis recedes, supply chain executives are losing the strategic gains they made with their C-suite counterparts. 28% of supply chain leaders cite cost reduction as one of the top three priorities currently.
For over a decade, since founding Supply Chain Insights in 2012, I have pounded the keyboard, asking business leaders to think more holistically about the impact of supply chain decisions on the firm’s value, the improvement of a value chain, and the impact on the environment. Thirteen years. Where does time go?
In most industries, supply chains have become increasingly complex. As a result, many organizations are moving toward supply chain orchestration as a structured method for improving coordination. As a result, many organizations are moving toward supply chain orchestration as a structured method for improving coordination.
The Covid-19 pandemic tested the global supply chain. Like riding a bumpy road, the supply chain leader is riding the ups and downs of changing market conditions facing greater variability day-to-day. Here, based on interviews with supply chain leaders, I share lessons learned. The Failure of Existing DemandPlanning Solutions.
While the terminology evolved, the underlying thesis of S&OP has stayed the same, i.e., bridge the divide between sales forecasts and operational plans while respecting the budget. Then the process was put to test in recent times, as increasing demand and supply side shocks caught companies flatfooted.
Good forecasting leads to good demandplanning —and good demandplanning means better profitability. That’s why it’s essential to be sure you’re equipping your organization with the right demandplanning software. Here are our answers to some of the most common questions about demandplanning software.
The supply chain planner role is the most dissatisfied of any employee in the supply chain, but most focus on improving engines using AI into conventional work processes. The opportunity is to rethink planning. Yawn and walk on if the answer is i mproving demand error or reducing inventory levels. This will not help.
Sudden and significant changes in demand, especially in consumer markets, stack up more challenges, requiring order revision and reallocation. The fulfillment process is further complicated by ongoing shifts in customer expectations and demands and geo-political and weather disruptions.
Self-congratulations notes abounded this week as vendor-after-vendor shared their rankings on the Gartner Magic Quadrant for Supply Chain Planning. I believe that the Gartner Magic Quadrant is a barrier to progress in supply chain planning, and that vendors that rally in support have a false sense of superiority.
Over the past five years, supply chains have faced unprecedented challenges. E-commerce demands, trade pressures, and increasingly complex supplier networks have necessitated executives to raise concerns about their supply chain operations. Who is responsible for Supply Chain Planning?
ARC Advisory Group has been covering the Supply Chain Planning ( SCP ) market for 17 years. The pandemic brought home the need for companies to run agile and resilient supply chains. Supply chain agility reflects a company’s ability to respond quickly to surges or plummeting demand. No plan is perfect.
Let me explain, if you fill out one of my surveys on LinkedIn, I share the research results in front of the paywall (I believe that supply chain research should be readily available and not locked behind a paywall.) (If We are trying to assess the value of a network in managing contract manufacturing.)
During my current supply chain planning market research, I have received briefings from several SCP companies. Many say that they are using generative AI, a type of AI that can create new content and ideas, as part of their journey toward autonomous planning. Solvoyo has a metric they call the user acceptance rate.
This article is a shortened version of themes & topics discussed in our newest DemandPlanning Core White Paper. Demandplanning has long been a requisite of supply chain management, but in a modern, high-speed environment, it’s become something more: a strategic lever for agility, and competitive advantage.
When I started my business in 2012, I frequently wrote about the future using the moniker of Supply Chain 2020. We had just recovered from a recession, and my goal was to help supply chain leaders create a better supply chain by the end of the decade. At that time, Supply Chain 2020 seemed so far away. I was wrong.
In supply chain management, it is widely accepted that holding enough finished goods inventory to fulfill every order is just too costly. Ronan Stephens, the Senior Vice President of Supply Chain Management and External Manufacturing, explained how the company set out on a journey to improve customer service while also reducing costs.
When reviewing strategy decks for supply chain teams, I often see statements like “move from a functional-silo’d focus to a drive a more holistic response.” Companies became less clear on the definition of supply chain excellence and how to implement decision support technologies. Functional Metrics.
For years, supply chains were engineered to be lean. Recent years have brought a series of disruptions that exposed vulnerabilities in how supply chains are designed. Recent years have brought a series of disruptions that exposed vulnerabilities in how supply chains are designed. Lean models alone are no longer sufficient.
The Connected Supply Chain. Drip Digital Supply Chain. Autonomous Supply Chain Planning. Self-Healing Supply Chains. Touchless Supply Chains. Small companies outperform large companies, and the marquee customers of major supply chain planning technology providers underperform. Industry 4.0.
Because of service disruptions – not being able to buy toilet paper, for example – the supply chain has been more discussed than ever before. It was also a very, very tough year for supply chain professionals working in the grocery supply chain. But just how bad was it? I look forward to this study every year.
Do Set Clear KPIs and Governance Structures : Establish transparent metrics for sales, coverage, and service levels. Regular reviews and joint business planning foster accountability and trust. Do Embrace Technology and Data : Use real-time data for demand forecasting, inventory management, and route optimization.
” Here is an excerpt from the article: “…it isn’t by becoming more efficient that the supply chains of Wal-Mart, Dell, and Amazon have given those companies an edge over their competitors. According to my research, top-performing supply chains possess three very different qualities. ” Hau Lee, October 2014.
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.
Supply chain management has been in the news. But the intricacies of supply chain management are beyond the grasp of most. One key solution used to help manage complex supply chains is supply chain planning (SCP). Supply chain planning is a complex solution. Only the next month’s plan firm.
Supply chain excellence is easier to say than to explain. Executive teams strive to drive improvement in supply chain results; yet, sadly, only four percent of public companies succeed. The supply chain is a complex non-linear system. Let’s take P&G as an example. The reason? A Case Study. Was this by design?
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. As companies across industries have discovered, a well-optimized supply chain can drive significant improvements throughout their operations.
The global supply chain is built on three assumptions: rational government policy, availability of reasonably priced logistics, and low variability. In March 2023, the Global Supply Chain Pressure Index fell to the lowest level since November 2008. Over the past three years, supply chain cycles shifted. Higher variability.
In 2022, I frequently ask companies to draw their river of demand. The activity is designed to challenge new thinking–to rethink demand as a flow, to identify rocks (barriers), and define process latency (the time to make a decision). Drawings from Two Very Different Businesses Portraying the River of Demand. Mistake #3.
Once upon a time, the world of manufacturing was a relatively stable place. But then, supply chain disruption became the rule instead of the exception, consumers changed their tastes as often as their socks, and global competition started playing hardball. So how does a manufacturer navigate this rollercoaster?
At the Supply Chain Global Summit 2018 , Francois discussed the impact of digitalization, Industry 4.0, and L’Oréal’s approach to business that has allowed the company to continuously rank as a Supply Chains to Admire winner for four consecutive years. Read more to understand the details on the Supply Chain Index ,).
While we will recover quickly in retail (moving from painful shortages to a glut of inventory), the chemical industry–sitting four and five layers back in the supply chain–takes longer to recover. Supply chain leaders have little say in the business.” Supply chain leaders have little say in the business.”
Procurement and supply chain management are often used interchangeably—but in practice, the lines between them can blur in ways that create real friction. In this blog, we cover the key differences between procurement and supply chain management, and explain where the biggest disconnects typically occur.
This is a story for the Eds, Franks, and Toms working together in supply chains across the globe. It is also a story for a young supply chain manager attempting to make a difference, but feeling stymied. Frank, the line manager for manufacturing, dominated the meetings. Efficient supply chains may not be the most effective.
Yes, a time when well-meaning supply chain leaders share their strategy decks for the upcoming year and ask me for an opinion. Supply chain leaders love shiny objects. I find that egos run strong through supply chain leaders. I define digital as the ability to redefine the atoms and electrons of the supply chain to drive value.
While consultants know the answers (or believe they do), I believe my goal as a research analyst is to unearth new questions that should be asked (and answered together openly in the supply chain community) to improve value. Like a car’s tire in a snowbank going nowhere… My goal is to free their thinking.
SCB Feature Report From DPW: What’s Next for AI in Supply Chain? That’s because the promise of artificial intelligence for supply chain operations is huge. It could do more to accelerate the journey of supply chain operations from the backroom to the boardroom than any other change. trillion to U.S.
My client attempted to have a supply chain discussion to improve flow, and his executive group just did not get it. As a result, my client became a pawn to eliminate as he drove to his goal of supply chain improvement. I worked three layers down in the organization for a well-established leader in manufacturing named Dan.
During the 1980s, I was on a management team for a large manufacturer. The Company was attempting to gain economies of scale by grouping manufacturing technologies within a common infrastructure to reap the benefits of a co-generation facility, a centralized warehouse, and a talented administrative team.
Digital Twin from Infor Nexus Drives Supply Chain Agility. When it comes to driving supply chain agility there are several solutions that are important, but the key solution is a Multi-enterprise Supply Chain Network (MSCN). But even in more normal times, a supplyplan usually can’t be fully executed.
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