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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
Despite two decades of advancement in supply chain technologies, companies are struggling to gain balance at the intersection of operating margin, inventory turns and case fulfillment. My goal is to understand the impact of technologies and processes. Today, we have a number of burning platforms. It is easier said than done.
The attendees were sitting on the edge of their seats to hear about the next release of Llamasoft software. The market for networkdesigntools 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.
This means continuously assessing the trade-off between the total cost to serve and meeting customer demand and minimizing lost sales. 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.
I asked myself, “How ironic is it that the technologies and processes of the past are always presented as the answer.” Tactical forecasting helps us to think through the questions of long-term asset strategies and sort through networkdesign optimization alternatives. 2) Invest in New Forms of Analytics.
As an analyst in the battered supply chain software market for a decade, it is fun to watch you grow. Clients buy your software because you make it real. I always start the discussion of all software acquisitions with the same statement: the acquisition of software is seldom a good deal for the buyer/user of software.
I am speaking this morning at the Terra Technology conference and doing a book signing of my new book, Supply Chain Metrics That Matter. In parallel, I have been hard at work on a report on multi-tier inventory optimization for the last two weeks. It will delay my report. It is morning in Orlando. The sun is rising.
The article is written and the story is spun, but the solution offered is a supply-centric solution based on yesterday’s technology. The original principles of a value network that can sense, shape and translate demand with near-zero latency are being lost in the fog. Their current technologies are inadequate. It is still early.
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.
The number one question that I am asked today by manufacturers across all industries is “How can I improve customer service?” Nine times out of ten improving customer service requires different management of the budget cycle and a rethinking of financial planning. The budget is for a fiscal year with quarter reporting and updates.
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. Instead, it should be an information exchange virtual platform.
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. Technology is used to help in this endeavor. Scope 2 emissions are indirect emissions from purchased energy.
Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” ” I have been studying the evolution of inventory technologies as an industry analyst since 2002. It is truly a case of process, people and technology.
Blue Yonder Acquires Returns Manager h 1000+ That is the number of generative AI services and applications currently n progress or built, but that figure is a “small fraction” of what it plans to build. prediction made in March. That according to the company’s 2025 Corporate Responsibility Report, released this week.
” At the other end of the continuum is the argument that “ Forecast error is the most important metric to improve.” I worked for a software company for almost a decade and implemented demand management solutions in the 1990s for multiple companies. The capabilities of these technologies are not equal.)
Teams must fully understand the concept and goals, and be equipped with the tools to enact change. NetworkDesign Today’s supply chain networks optimize for linear material flows. But, circular supply chains require cost-effective ways to recapture products to extract value.
Realistic constraint-based schedules and capacity-planning tools can help reduce manufacturing planning time by as much as 75%. Multi-mode freight optimization is another value-added tool that should be investigated by process chemical manufacturers. it is often targeted for reduction.
New technology aims to make the supply chain more efficient, yet investing in the wrong technology further complicates productivity while hindering profitability. Sebastian Jungels @seb_jungels Sebastian is a co-founder at KAPUA , an enterprise SaaS provider, where he helps companies to improve their forecasting accuracy and speed.
In the complex supply chain that links an enterprise with its supplier upstream and its customer downstream, coordination of planning, resources and processes between all three entities should result in less wastage, better margins and lower costs.
Supply chain planning systems receive the forecast as input and plans the purchasing of materials, making of products, and overall operation of your supply chain. The system helps you improve availability, reduce costs, and manage your network of manufacturing facilities and sales channels to hit ever-increasing profit targets.
Right Service. Metrics and Key Performance Indicators (KPIs) measure how well the shipper-transportation provider does in daily continuous improvement. To build a lean supply chain, organizations need to build long term relationships with quality carriers that are stable, dependable, and committed to servicing the organization.
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?
On Monday, I would speak in Orlando Florida at the Terra Technology event; and on Wednesday, present the keynote at the Logistic Summit & Expo in Mexico City. What is the potential impact of new business models? Brain storm the impact of the collaborative economy, eCommerce, and shared servicemodels. Bio-engineering?
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.
Third-party logistics companies ( 3PLs ) specialize in distribution, warehousing and fulfillment services. Today, there are many top 3PL warehousing companies that handle warehousing, fulfillment, logistics and distribution services for companies of all sizes. The core competency of these companies is logistics , and they do it well.
Today, businesses are at the cusp of new changes in the supply chain that includes evolving customer expectations, omnichannel purchasing, and the shipping of unpredictable volumes. With the supply chains of all businesses going through a transformational shift, it is important for them to make tough decisions concerning logistics models.
Customer Service There can be few companies today that don’t see customer service as a business fundamental, but did you know that it’s actually one of the most important supply chain basics too? On the other hand, progressive companies have learned how to leverage their supply chain as a customer service enhancer.
billion metric tons—the emissions have rebounded in 2021 and 2022. In the case of manufacturers, it means procuring green and sustainable raw materials. Network optimization. These are challenges that will only become more threatening if they are not curbed, paying strict attention to supply chain sustainability.
Customer Service. There can be few companies today that don’t see customer service as a business fundamental, but did you know that it’s actually one of the most important supply chain basics too? On the other hand, progressive companies have learned how to leverage their supply chain as a customer service enhancer.
A recent American Shipper report on the subject of domestic TMS adoption by shippers in the US reveals that just shy of two thirds of US companies with more than $100 million in annual freight spend are using TMS systems to manage transportation. Both these points are crucial to the cost arguments in your business case.
Benjamin Franklin once said, “Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety.” We say, “Those who would give up essential spend visibility and control to purchase a little temporary convenience deserve neither.” For a small (low volume) shipper, this is often enough.
A recent American Shipper report on the subject of domestic TMS adoption by shippers in the US reveals that just shy of two thirds of US companies with more than $100 million in annual freight spend are using TMS systems to manage transportation. Both these points are crucial to the cost arguments in your business case.
We finished our report on the maturation of hospital supply chains , and I have put the finishing touches on the Healthcare Supply Chain Index for this Thursday’s webinar. The most common reporting relationship in the organization is to the hospital’s Chief Financial Officer (CFO). Question conventional models.
I want to understand why some companies outperform on the Supply Chain Metrics That Matter while others do not. The Delta Medallion customer service agent told me that she had never seen anything quite like it. In Agrosciences is the customer the distributor of seed/additives, the farmer or the downstream purchaser of food products?
Historically, most supply chain investments were for engines–bright guys built fabulous optimization code and plonked the software onto a relational database. The engines largely operate in isolation: they lack a seamless platform. Evaluate networkdesign options to simplify sourcing and reduce the number of platforms.
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