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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.) Understanding this relationship requires modeling. (A A Case Study.
In May 2025, one in seven home-purchase agreements fell through resulting in the cancellation of 56,000 purchase contracts. Ask a procurement or transportation professional if they have a good demand signal and expect a laugh. Irony Over the last decade, the number of planners at global manufacturing companies exploded.
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. Kinaxis Purchase of Rubikloud. Reflection.
I have learned that supply chain systems are more complex than I originally thought, and that the relationships between supply chain metrics are nonlinear. 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.
I know that your primary focus is procurement. Or planned orders to purchase orders?) I observed companies use the beer game as an educational tool or a social networking activity. This is despite the deployment of ERP, descriptive analytics, APS, SRM, and teams of data scientists working on their data lakes.
The market for networkdesign tools was growing at a moderate rate, and most of the market had invested in technologies from either i2 Technologies (then termed i2 Strategist) or Logictools. Today, supply chain design has become a process all to its own. Instead, it needed to be steps of continuous designs. The reason?
Primed for transactional efficiency, these legacy architectures based on relational databases drive order-to-cash and procure-to-pay efficiencies. Current Familiarity with Analytic Concepts (Fall 2022 Snapshot) Preamble Supply chain leaders love their rows and columns. I term this our data jail. The focus of the Gartner Magic Quadrant.)
Today, I speak at the North American Manufacturing Association, Manufacturing Leadership Conference, in Nashville on the use of data to improve supply chain resilience. Interestingly, in Q3 2023, 38% of manufacturers, distributors and retailers missed their target for revenue guidance for the quarter. The result was restatement.
Dr. Alexandros Skandalakis – the Director Global Manufacturing Capacity, Strategic Assets and Capital Expenditures at Philip Morris Products S.A. This was done at a stock keeping unit level and for the entire manufacturing supply chain. It was predictable. The solution considers projected demand and service level goals.
Truck drivers report that maintenance issues are a constant nightmare. Manufacturers build “control towers” but there no network dial tone between parties to enable prescriptive analytics and alerting.). There is not a one-to-one relationship between a container and a purchase order. Be A Good Shipper.
The market shift is towards analytics, but this new market is confusing. They are step change requiring either the redeployment of existing technologies or the purchase of new platforms. Data model structures are the difference between success and failure. Build What-if Analytics. Design the Network.
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. They are more likely to shop for discounts and sales and may delay purchases of some items.
I wrote my first report on Sales and Operations Planning (S&OP) while sitting on the floor in the Atlanta airport in 2005 when I was an AMR Research analyst. I wrote many reports on airport floors in those days–electrical plugs were just too scarce.) Sales and Operations Maturity Model from 2005-2008. Mistake #3.
In this scenario, by adopting an adaptive supply chain, 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. This collaboration enables faster response times and cost savings.
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.
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 budget is for a fiscal year with quarter reporting and updates. Background.
Conversely, just 8% of businesses with less capable supply chains report above-average growth. 1) In many businesses, the supply chain has never been subject to a design process, but has instead just … evolved. That figure highlights like no other how critical the interrelations are between an enterprise and its supply chain.
NASDAQ: AMSWA) today reported preliminary financial results for the first quarter of fiscal year 2023. Sears Manufacturing Co., a Traverse City, Michigan based innovator of supply chain networkdesign software. million and purchased Starboard Solutions Corp., ATLANTA (August 24, 2022) American Software, Inc.
Through digital marketing, small brands are cropping up all over, and it is sentiment analysis and digital content driving purchases. Instead, companies need to build it into digital process redefinition like digital path-to-purchase, digital procurement, digital agriculture, digital manufacturing or digital service.
294 manufacturing facilities produced more than 90 million metric tons of food and beverage in 2021. PepsiCo products then reach shelves through its operating subsidiaries and a complex network of fleet operations. Scope 2 emissions are indirect emissions from purchased energy. PepsiCo’s Internal Supply Chain.
” 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. This is Planning by Design. ” I am in the middle. Here I share my world view. Everyone has a bias.
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. prediction made in March. That according to the company’s 2025 Corporate Responsibility Report, released this week.
In the period of 2005-2010 I created research on the topic of demand-driven value networks as an analyst at AMR Research. This ended when Gartner purchased AMR Research in 2010. Since I do not believe in the Gartner business model, I left. These companies are fighting for deals in traditionally supply-centric models.
The SAP acquisition of Ariba slowed innovation and the purchase, and then the failed promise of investment in Crossgate was disappointing to SAP supply chain business users. Can these approaches be rolled up to design and implement a network of networks? Future of Analytics in the Building of Supply Chain 2030.
This translates to a plethora of job opportunities across various sectors, from manufacturing and retail to healthcare and technology. Diverse Skill Set Utilization: Multifaceted Role: Supply chain roles often require a blend of analytical, organizational, communication, and problem-solving skills.
Returning containers is an ongoing issue resulting in some manufacturers investigating a return to break-bulk shipping (container free). Truck drivers report that maintenance issues are a constant nightmare. There is not a one-to-one relationship between a container and a purchase order. Trade continues to be imbalanced.
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.
Conversely, just 8% of businesses with less capable supply chains report above-average growth. 1) In many businesses, the supply chain has never been subject to a design process, but has instead just … evolved. Supply Chain NetworkDesign. SEE ALSO: Supply Chain Strategy Development. .
Process chemical manufacturers face complex supply chain challenges including dealing with hazardous and perishable ingredients whose characteristics (potency, color, composition, etc.) I believe there are several key ingredients to formulating a winning process manufacturing supply chain. can vary from lot to lot.
If there’s any piece of technology or analytics that can help with the most advanced data-driven decision-making in the supply chain right now, that’s prescriptive analytics. It is the most promising form of analytics in the market currently. What Is Prescriptive Analytics in Supply Chain?
Process manufacturers face a highly complex supply chain challenge. Add to these factors such as razor-thin margins, SKU-proliferation, globalization, and products that tend to be heavy, bulky and/or expensive to move and it quickly becomes apparent why process manufacturing supply chains are very challenging.
I am a manufacturing gal by training. It pains me to see nine out of ten companies are stuck at the critical intersection of cost and inventory turns. Customer sentiment technologies mine the patterns of unstructured text and use new forms of analytics to guide discovery on what matters to the customer. What drives my passion?
Metrics and Key Performance Indicators (KPIs) measure how well the shipper-transportation provider does in daily continuous improvement. Sustained cost reduction is not realized through infrequent transportation networkdesigns and carrier RFQ’s. Measure Transportation Performance. Problem-solving methods. If not, Why?
According to a 2021 report by World Economic Forum and BCG, eight global supply chains account for more than 50 per cent of annual greenhouse gas emissions. Putting added pressure on the industry to create better pathways into decarbonisation and sustainability. There are many ways in which the industry can implement changes.
BBB Industries’ sustainable manufacturing processes using recycled materials reduced GHG emissions by 38% compared to virgin resource production. NetworkDesign Today’s supply chain networks optimize for linear material flows. The right rebate or trade-in program can encourage additional purchases.
Our supply chain involves a contract manufacturer, a third-party testing facility, warehouses to store inventory and a freighting company. For example, if my contract manufacturer is late with an order it can cause me to incur excess costs with the freighting and warehousing companies, respectively.
Automotive and industrial manufacturing plants are being shuttered around the world, which has affected not just the OEMs but also their Tier 1, Tier 2, and Tier 3 suppliers. Visibility is the key to help predict current and future effects of COVID-19. What Can Organizations Do Now? Scenario Planning.
Anyway, the access to this database costs an arm and a leg. Therefore, the challenge to establish the ranking method is to find a more economical data source and the unbiased metrics. Ranking of Supply Chain Books We're sure some of you've been using Google Scholar to find related publications. The links below are #paid links.
Process Design. For one manufacturing client, a recent diagnostics assessment identified key opportunities in supply chain planning process improvements, logistics optimization and reporting enhancements. New client engagements in life sciences, hi-tech and manufacturing. PURCHASE ORDER ACCRUALS. Read Case Study.
Supply Chain Collaboration is the systematic coordination of planning, processes, and information sharing between organisations across the supply chain network. The distributor, seeing this uptick and wanting to stay safe, orders 30% more from the manufacturer.
If the supply chain pipeline is optimized, it leads to a host of competitive advantages such as reduced operating costs, efficient utilization of resources, faster deliverability of goods, and eventually, revenue realization. Not to mention, the plethora of options and flexibility to make purchases, anytime anywhere. Sounds simple?
Rethink NetworkDesign. Consumers are no longer bound by loyalty or geographic necessity in their purchase decisions. Rethink NetworkDesign. 11] " Autonomous mobile robots grow beyond car manufacturing, get heavier loads ", Eugene Demaitre, The Robot Report, March 22, 2019. [12] The Challenges.
Services Matias Offer on SCMDOJO Logistics Consulting Maritime Freight Sourcing and Procurement Logistics Technology Sourcing Executive Mentoring Guide: Matias, our supply chain consultant, has also created Maritime Freight Sourcing and Procurement Guide , which is available from SCMDOJO Academy.
SCM World’s The Digital Transformation Directive report introduces a framework that companies can follow to approach these types of digital transformations. SCM World’s The Digital Transformation Directive report introduces a framework that companies can follow to approach these types of digital transformations.
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