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In my work on the Supply Chain Index , I see that companies I recognize as doing networkdesign well are rising faster on the list of the Supply Chain Index work. The networkdesign technologies have changed a lot in the last decade. (I Along the way, I will be doing more work on networkdesign case studies.
Ask a procurement or transportation professional if they have a good demand signal and expect a laugh. Technology can automate role-based views up and down the river of demand for all roles: marketing, sales, finance, manufacturing, procurement, transportation, and human resources. As a result, demand variability grew.
Supply chain networkdesign (SCND) is a powerful tool for improving business operations. Demand is at the Heart of Supply Chain NetworkDesign The first step in the SCND process is translating business rules into a set of data inputs: demand, products, customers, sites, shipment rules, production details, and various constraints.
The range of bullwhip from the order to planned orders for manufacturing was 2.5-4.0. Outsourced manufacturing had a bullwhip of 8-9. The combination of a negative Forecast Value Added (FVA) with a bullwhip in this range amplifies and distorts the signal to manufacturing, logistics and procurement increasing waste.
Whether its demand forecasting, networkdesign, or manufacturing optimization, AI is enabling companies to respond faster and smarter to disruption. NetworkDesign Is Top of Mind There was a strong interest in network optimization and resiliency, especially in the face of tariffs and global disruptions.
In the face of variability, this is two-to-six weeks too long to make allocation or procurement decisions. Order cycles–the requested time from order to delivery–decreased while supply cycles –the time to procure materials– increased. Shift in cycles. Over the past three years, supply chain cycles shifted.
Globally ten percent of jobs are in manufacturing, while 37% are associated with supply chain management. They are impatient that they know more about pizza’s status for lunch before their zoom meeting than the inbound shipment status for their critical manufacturing run. Reflection. The supply chain career is new. Thumbs Up.
I know that your primary focus is procurement. In one of the case studies, a manufacturer reported that they had 1700 employees with the term “data” in their title, but they lacked insights. Use the visualization in networkdesign models to educate teams on why they should care. Go to the source.
Keith led the work to move P&G from a regional to a global manufacturer opening up the Warsaw center of planning excellence and outsourcing IT to HP. Keith was an undisputed leader in building talent to drive manufacturing excellence. Supply chain excellence was largely defined as manufacturing excellence.
Manufacturing is designed and planned in isolation. Management and planning of the entire network against a value network strategy. Integration with manufacturing systems to understand actual run times and Operating Efficiency (OEE). Manufacturing. Procurement. Tactical Supply. Little clarity.
Management practices such as lean manufacturing and just-in-time inventory management, along with globalization, have made tremendous impact on cost and service, but have accentuated risk. Design and planning software has been utilized for the last several decades to manage these operational risks. are most exposed to risk?
Especially grievous are the gaps between finance and operations, manufacturing and procurement, and the operations and commercial teams. Each requires design and fine tuning. However, only 9% of companies actively design their supply chains. Design Your Value Chains. The gaps between business leaders grew.
Supply chain NetworkDesign can be explained as the strategic planning of the supply chain in order to measure the cost and the time required to bring the goods and services from manufacturers and suppliers to the market. Procurement costs and processes. Importance of networkdesign in supply chain.
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. NetworkDesign Analysis. What did we find? Buffer strategies.
Primed for transactional efficiency, these legacy architectures based on relational databases drive order-to-cash and procure-to-pay efficiencies. Demand latency (the time from purchase by the customer to order visibility by the manufacturer) is weeks and months. I term this our data jail. The So What And Who Cares? Stay tuned.
My first job was in manufacturing in the 1980’s. The focus of APICS is manufacturing, CSCMP’s foundation is in logistics, and ISM serves the procurement organization. For reference, 52% of companies have a networkdesign group, and 40% of these companies think that they do it well. They lack alignment.
In this volatile world, efficient procurement led by a CFO is not the answer. The company needs to focus on the design of flows, building outside-in processes, creating an effective supplier development group, reducing complexity, and driving bi-directional orchestration to a balanced scorecard. What is the issue?
Procurement has never played such an important role in the increasingly globalised economy. Has procurement fundamentally changed itself in the past 10 years? Strategic Procurement can mean totally different things in different industries and sectors. The time when Procurement was almost a synonym to Purchasing has long gone.
That variability might be in the areas of manufacturing, distribution, or transportation capacity. But procurement says, ‘well, we’re not going to tell the supplier that because we have this volume-based discount. That often means that the way procurement deals with key suppliers needs to change. Very simple situation.
Supply Chain NetworkDesign Along with the design of supply chain strategy, the design of the supply chain itself, especially the part dealing with outbound distribution from plants or warehouses, is instrumental in the success or failure of businesses.
The company uses a networkdesign tool from Coupa. Lead times expanded even for domestic manufacturers because they sourced raw materials from overseas. Procurement is critical to being able to stay in stock with the most important products. This is an important analysis tool for maintaining a well-run supply chain.
We have heard that there is a focus on near-shoring, reshoring, and local manufacturing. Building a fab (manufacturing site) takes two-to-four years and requires the availability of water and trained labor. The answer lies in networkdesign, demand sensing, and the simplification of product platforms. What can be done?
Managed services can include a lot of different things: supply chain modelling and networkdesign, transportation procurement engagements (both strategic and tactical), day-to-day planning and execution of shipments, business intelligence and analytics services, execution of continuous improvement projects, and so on.
Instead, companies need to build it into digital process redefinition like digital path-to-purchase, digital procurement, digital agriculture, digital manufacturing or digital service. Strategy to NetworkDesign. The best supply chains are designed against business goals with conscious trade-offs.
Frasquet is the executive director of corporate procurement, although his responsibilities include a much broader set of supply chain responsibilities than just sourcing. Mr. Rodríguez is the operations strategic planning manager and he leads a team focused on the company’s supply chain design.
The best way to start the design of an agile supply chain is to look at the sources of variability and market volatility that your supply chain encountered in the prior year. These can be shift in the channel, issues in manufacturing, increasing variability in transportation, or a shift in commodity prices.
There are natural processes that require tactical horizon for procurement buying and transportation sourcing, and Sales and Operations Planning. Shifting and aligning manufacturing load across factories is critical. If you are a regional or a small company, tactical planning is not as critical.
Previously, the focus was on a more siloed approach to improving manufacturing, procurement or logistics. The design of the process was for manufacturers to collaborate with their retail partners on the building of a demand plan for the extended network. 4) Data Model Design. 6 ) 80% Is Good Enough. .”
Demand-driven concepts are expansive they extend from the customer’s customer to the supplier’s supplier, but the areas of sales and procurement are often very resistant to the demand-driven concepts. And, the strongest consulting partner for networkdesign is Chainalytics. To do this companies need an end-to-end leader.
Especially grievous are the gaps between finance and operations, manufacturing and procurement, and the operations and commercial teams. Each requires design and fine tuning. However, only 9% of companies actively design their supply chains. Design Your Value Chains. The gaps between business leaders grew.
Especially grievous are the gaps between finance and operations, manufacturing and procurement, and the operations and commercial teams. Each requires design and fine tuning. However, only 9% of companies actively design their supply chains. Design Your Value Chains. The gaps between business leaders grew.
Optilogic Closes $40 Million Series B Round Supply chain networkdesign software provider Optilogic has reported the closing of its $40 million Series B equity funding round. a Japan based global supplier of mechanical components for the manufacturing industry. Once closed, Fictiv will reportedly join MUSUMI.
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. Organizational alignment in manufacturing organizations is worse between operations and finance teams today than in 2013. I give you this evidence in this blog.). Mistake #5.
The number one question that I am asked today by manufacturers across all industries is “How can I improve customer service?” Granular data by volume is a must to be able to manage replenishment, networkdesign, and inventory targets. The two primary buffers in the supply chain are manufacturing capacity and inventory.
production of alternative models, or halting vehicle manufacturing for the U.S. For example, some OEMs in the past, like Mercedes-Benz, manufactured Sprinter vans in Germany, then partially disassembled them for shipment to South Carolina, where they were reassembled to avoid U.S. market in Mexico. million U.S.
At the same time, new sales markets are emerging for manufacturers of medical devices, and innovative technologies such as 3D printing are making a breakthrough. Manufacturers of medical technology (‘medtech’) must choose a clear strategy: Plan. Manufacturers of medical technology (‘medtech’) must choose a clear strategy: Plan.
Many virtual attendees were also present, with representatives from across logistics, procurement, manufacturing, IT and sustainability not only learning from the esteemed speakers presenting, but also sharing their expertise and experiences. All this ensures the most holistic approach to supply chain management on a single platform.
The increasing need for constantly analyzing these trade-offs across the supply chain networks has highlighted the need for digital twins and what-if capabilities in networkdesign solutions.
Today, a company’s success is largely driven by: its networkdesign and how that company manages its supply, production and distribution locations. its transportation management and how well it continually procures, plans, executes and monitors freight. Networkdesign.
Forget static networkdesigns and gut-feel decisions. By harnessing the power of data science and analytics, you can gain end-to-end visibility across your entire network, breaking down information silos and optimizing every stage of your operations. That’s where data analytics comes in.
This allows shared services of procurement and transportation to function smoothly to achieve the economies of scale. Without this discipline, the global organization cannot actualize buying power in procurement or lower costs and improve costs/customer service in transportation. 4) Plan By Design. Planners need time to plan.
Structural Visibility: Unveiling the Foundation of Supply Chains Structural visibility refers to the ability to gain insights into the foundational elements of the supply chain network. This visibility enables organizations to optimize their supply chain network, manage suppliers effectively, and ensure compliance with regulations.
Are those designing your launch vehicle (networkdesign, factory planning) communicating directly with flight planners (transportation planning) on projected transportation time and cost impacts of various network layout and materials sourcing options? It sounds ridiculous, doesn’t it? Planning as a Way of Life.
This translates to a plethora of job opportunities across various sectors, from manufacturing and retail to healthcare and technology. Maryna has: 5 years of experience in procurement training and consulting. 10 years of experience in purchasing and procurement, the tobacco market in particular.
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