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From raw material sourcing to logistics and regulatory compliance, stakeholders across the value chain will need to prepare for structural adjustments. Sourcing and Ingredient Availability A central impact of this policy is the need to replace synthetic colorants with natural alternatives.
Strategic sourcing and innovative solutions are often viewed as two distinct procurement tools, but they should not be seen in isolation. Strategic Sourcing: The Foundation of Effective Procurement Strategic sourcing is far more than simply choosing suppliers. Done well, it can become a key driver of competitive advantage.
The shortage has not impacted Charlottesville’s other major healthcare provider, Sentara Health as this organization sources its IV solutions from a different manufacturer. UVa Health said it is working on reducing any unnecessary waste of IV products, including IV fluids, dialysis fluids, parenteral nutrition, and irrigation fluids.
A 2023 McKinsey study found that companies relying on reactive supply chain management lose up to 10% of annual revenue due to inefficiencies and missed opportunities. This enables companies to adjust sourcing, production, and logistics well in advance of potential disruptions.
For global manufacturers, managing direct and indirect material spend can get very complicated very quickly. In response to these challenges, a leading heavy equipment manufacturer selected GEP to redesign its source-to-contract processes and implement a convergent data model to help manage procurement data across its multiple locations.
Ivalua study finds 97% of procurement leaders see significant disruption in direct materials supply chain; 67% not confident in existing technology; 84% consider modernization a ‘strategic priority’. Technology Advantage: 76% of manufacturing procurement leaders use supplier management software to optimize supplier relationships.
In our pandemic research, we interviewed thirty manufacturers. Here we share the case study of Philip Morris using a digital twin deployment. To gain insights, we interviewed Alexandros Skandalakis, Director of Manufacturing Capacity, reporting to operations/manufacturing globally within Philip Morris.
The examples below show you how to do this in AIMMS SC Navigator Apps, but we encourage you to study these scenarios in the tools you have at your disposal. . Multiple best/worst case scenarios should be run under different demand conditions to study the impact on your supply chain. Study 2: Inspect Demand Trends .
ARC has been actively studying industrial AI for over two years. 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.
Two recently published studies identify the top disruptions that impacted industry, business and global supply chains during 2024 and our expected to be present in 2025. Regarding this latter, the automotive, semiconductor, and manufacturing industries are particularly cited as at risk due to proposed tariffs by the new U.S.
Are industrial manufacturers seizing all the opportunities of a more digital world? A recent article suggests that, by 2018, only 30 percent of manufacturers investing in digital transformation will be able to maximize the outcome. Possibly not. The remaining 70 percent are hindered by outdated business models and technology.
How should a global manufacturer make a decision? In other studies, I am working with data scientists and statisticians to glean insights from over sixty quantitative research projects over the last decade. In short, the research tells me that the manufacturing industries are stuck. What is the role of make, source, and deliver?
We have not designed the planning systems to serve managers, directors, and vice presidents, aiming to improve decision-making and collaboration across the source, make, and deliver processes. Using channel and trading partner signals build outside-in models and orchestrate decisions across source, make and deliver. So, What Is Value?
Build in-market sourcing. Rationalize global strategies to focus on building markets based on in-market sourcing. Currently, I am working on a study to understand the value of synchronizing contract manufacturing with in-house manufacturing and procurement. Make divisions and regions self-sufficient. Interested?
On top of this, after demand has been adjusted, demand simulations can be run to study the behavior of your resources over time as demand continues to increase or decrease. . Another use case we see for scenario modeling in the current context is evaluating new sourcing locations. Evaluating Potential for Reshoring .
This classification extends to the manufacturing facilities and personnel keeping us fed and supplied. Doing more with less is more critical in manufacturing than ever. They might even find themselves conscripted into manufacturing essential products under the Defense Production Act. Here are a few of them: 1. In 2018, the U.S.
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. Once the analysis was done for Year One set up, Year Two was pretty much the same.
These tools allow us to look at sell, source, make, and deliver together. Along the way, I will be doing more work on network design case studies. The greatest gap is in the design of supplier and manufacturing networks. And, in our Digital ManufacturingStudy. Here I share a cut of the data. Where Would I Start?
But, I want to understand this more, and as a result, I have a new study in the field to gain additional insights, and I would love your input. In 2012, I placed the first alignment study in the field. Advanced planning solutions (APS) do not cross over make, source, and deliver with a common data model in the planning horizons.
In late 2023, Descartes conducted a survey of 1,000 supply chain and logistics decision-makers across North America and Europe across three sectors: manufacturing, distribution and retail; carriers; and logistics services providers. The study also provided insight into what companies are doing to address it.
I like many other gray-haired supply chain professionals reported through a functional organization like manufacturing or transportation. For me, it was manufacturing. The reporting of manufacturing and procurement organizations through the supply chain leader has the probability of the flip of a coin. It was a special club.
The team was organized around the functional silos of source, make and deliver. “I study supply chains. In our work, we tie research from quantitative and qualitative studies to financial results to drive new insights. Proudly, I had led my division to have the lowest manufacturing costs with the highest Return on Assets.
After two decades of study, I think because it is a lack of understanding. A Case Study. 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.
In manufacturing-based companies, 70-80% of costs are in the processes of source, make and deliver. While the practices of finance are over 200 years old, in contrast, supply chain as a cross-functional practice (the combination of make, source and deliver) was recently defined in 1982. Is talent a cost or an asset? Talent Gaps.
The outsourced R&D, in turn, supported outsourced manufacturing with over 50 key suppliers. Boeing is now a case study in how not to outsource a supply chain. But if Boeing can’t even manage processes in their factories, how good can they be at managing their partner’s manufacturing processes?
Fast forward 5 years, and ARC’s 2019 base-year study estimated the market at $11.9 Also, warehouse automation excludes similar systems such as airport baggage handling, manufacturing-line automation, and manually driven forklifts. I will soon be publishing the 2021 base-year study with a five-year forecast through 2026.
Many of the case studies being presented at today’s conferences were born during the pandemic and the post-pandemic turbulence. One of my insights from doing the industry analysis for the Supply Chains to Admire each year is that smaller and less well-known companies outperform larger and better-known manufacturers.
How MES is Shaping the Future of Manufacturing and Boosting Production Efficiency What is a Manufacturing Execution System (MES)? A manufacturing execution system (MES) is a comprehensive, dynamic software system that monitors, tracks, documents, and controls the process of manufacturing goodsfrom raw materials to finished products.
In a recent study, roughly 1/3 of respondents were familiar or very familiar with the concepts of the Graph Approach. Or a unified data model across source, make, and deliver for planning? Demand latency (the time from purchase by the customer to order visibility by the manufacturer) is weeks and months. Market-Knowledge Graph.
Our retail customer loyalty study confirmed that there is an increasing concern on the part of consumers that stores will have the items they need in stock,” said Caroline Proctor, CMO at ToolsGroup. In July 2022, IHL and ToolsGroup surveyed U.S. Retailers can counter a staggering $1.9 About ToolsGroup.
The process brings together all the plans for the business (sales, marketing, development, manufacturing, sourcing, and financial) into one integrated set of plans.” Read the full Melitta case study below. Read Case Study. Michael Youssef.
In research study after study, we see that the greatest challenge to achieving supply chain excellence is the understanding of the supply chain by the leadership team. It combines decisions across sell, deliver, make and source processes to drive value based outcomes. This includes optimization and discrete event simulation.
In 2015, I joined Dassault Systèmes (3DS), more specifically the DELMIA brand, whose portfolio helps industries by connecting the virtual and real worlds of value networks to collaborate, model, optimize, and perform in the ambit of manufacturing and operations. Source : Designing Disruption. What Does Sustainable Operations Mean?
Over the last six years, we studied the connection between business results (growth, operating margin, inventory turns and Return on Invested Capital (ROIC)) and the link to company characteristics. The advancements in analytics–open-source, cloud, internet-of-things (IOT), and cognitive computing–are very promising.
“The idea of the value chain is based on the process view of organizations, the idea of seeing a manufacturing (or service) organisation as a system, made up of subsystems each with inputs, transformation processes and outputs. ” Institute for Manufacturing, 2013. __. Tipping points are fascinating to watch.
While lean manufacturing and just-in-time were game-changing concepts when they were introduced, agility and resilience must be taken to an entirely new level post pandemic. In a study of logistics providers conducted by Fraunhofer IML, only 36% of organizations reported that they had a clear overall plan for digital transformation.
I would encourage the reader to study both: The Good the Bad and the Ugly of DDMRP from Stefan de Kok from ToolsGroup. I like Lokad’s use of machine learning using open source database techniques (think about attribute-based machine modeling in a modified Apache Spark-like architecture.) To address the topic, let me digress.
Mr. Daniels reports they have 870 employees, so based on a market study recently completed by ARC, this claim is credible. Additionally, they are tracking 5 billion pounds of goods back to their original source to ensure a wide variety of compliance standards are met.
This is the year that AI stops being just a buzzword and begins to evolve into an operational imperative for manufacturers, retail and supply chain companies. Like any engine, it cant run without fuel, and not just any type of energy source is going to cut it. Think of AI as a high-performance engine.
While there are many types of visibility (see Figure 1), the most common use case is either sourcing or transportation visibility. Contract manufacturing or 3PL data often will have a 24-hour latency due to batch integration. Figure 4 is a case study from Lenovo. In this blog post, I give a framework to drive discussions.
My 67 quantitative studies over the past decade do not support the value. similarly, over 95% of manufacturers invested and implemented supply chain planning, but their primary tool today is Excel. and digital supply chains. Did these investments drive value? I don’t think so. Will they prove valuable in the future?
Let us study major highlights of Supply Chains of the future. Case Study Agility: ZARA. As the fabric suppliers require the longest lead times, ZARA approves designs & initiates manufacturing after it gets feedback from its stores. Case Study Resilience: CISCO. Case Study Risk management: The All England Club.
Ariba is the least cooperative of all networks studied. No network crosses over the source, make, deliver processes. In addition, Nulogy does an excellent job of managing outsourced manufacturing for consumer products, but not bi-directional sourcing or logistics flows. We would love to have your input on the study.
Source Wikipedia. Consumers became more loyal to retail brands, and retailers increased the number of products manufactured and marketed as house brands. I have studied the building of collaborative processes and written about the shifts and highlighted where we are gaining value. In the 1990s suppliers had channel power.
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