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I laugh when business leaders tell me that they are going to replace their current supplychainplanning technologies with “AI.” Each supplychainplanning technology at the end of 2024, went through disruption–change in CEO, business model shift, layoffs, re-platforming and acquisitions.
Machine learning (ML)a specialized field within artificial intelligence (AI)is revolutionizing demandplanning and supplychain management. According to McKinsey , organizations implementing AI-driven demand forecasting solutions can reduce forecast errors by 30% to 50%.
The modern supplychain 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 supplychain compliance.
In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supplychain excellence. In my post Mea Culpa, I reference my work with the Gartner SupplyChain Hierarchy of Metrics. They do not excel in planning or forecasting.
The new year has arrived and so has the new wave of noteworthy news coming out of the supplychain space. A first-of-its-kind research project was published by the FAIRR Initiative, addressing human rights violations and overfishing in the seafood supplychain. As the year marches on, you can count on weekly updates here!
In today’s interconnected global economy, sustainability within supplychains 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.
According to research by Ernst & Young LLP, the global consulting firm, as the Covid crisis recedes, supplychain executives are losing the strategic gains they made with their C-suite counterparts. 28% of supplychain leaders cite cost reduction as one of the top three priorities currently.
Historically, supplychain leaders managed supplychains 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.
However, as carbon taxes and emissions reporting requirements continue increasing, supplychain 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.
The logistics and supplychain industry is a critical component of global trade, responsible for moving goods and materials efficiently to meet consumer and business demands. Businesses face heightened uncertainty in managing costs and securing stable energy supplies.
Let me start by saying that t he process is not a panacea to solve all supplychain ills. For most companies, building a great S&OP process is a missed opportunity. For me, there are ten characteristics that define a great S&OP process: Clear and Actionable. S&OP is a business process.
In most industries, supplychains have become increasingly complex. As a result, many organizations are moving toward supplychain orchestration as a structured method for improving coordination. Collaborative Workflows Supplychains involve many teams and companies working toward the same outcome.
Supplychain sustainability is increasingly important for companies facing expectations from investors, regulators, customers, and employees. Integrating ESG across supplychains presents clear operational and strategic challenges that require focused attention. Data collection and verification remain areas of concern.
Open Sky Group, a global leader in supplychain execution solutions, has announced a strategic partnership with Easy Metrics , a premier provider of labor management and warehouse performance management solutions.
Protecting sensitive data—such as vehicle locations, driver information, and operational metrics—requires rigorous cybersecurity measures. Autonomous vehicles will also facilitate greater integration across the supplychain, improving real-time communication and collaboration between suppliers, carriers, and dispatchers.
In my recent Mea Culpa post, I mentioned my prior work on Sales and Operations Planning (S&OP), and the importance of leadership. Leadership and S&OP? If you have walked in the shoes of the supplychain leader, you are probably laughing by now. Is your plan feasible? Sounds easy, right?
If “the forecast is always wrong,” is improving forecast accuracy even the solution to our demandplanning woes? In spite of investment in effective tools, I regularly hear from supplychain leaders express frustration that their teams don’t “trust the box.” So what can we do to make models more useful?
Neil’s post in response to my post of Driving Value From Outside-in Planning : In her post, ‘Driving Value from SupplyChainPlanning’, Lora Cecere provides great supplychain analysis and benchmarking for her supplychains to admire.
Self-congratulations notes abounded this week as vendor-after-vendor shared their rankings on the Gartner Magic Quadrant for SupplyChainPlanning. I believe that the Gartner Magic Quadrant is a barrier to progress in supplychainplanning, and that vendors that rally in support have a false sense of superiority.
For over a decade, since founding SupplyChain Insights in 2012, I have pounded the keyboard, asking business leaders to think more holistically about the impact of supplychain decisions on the firm’s value, the improvement of a value chain, and the impact on the environment. Thirteen years.
For years, supplychains were engineered to be lean. Recent years have brought a series of disruptions that exposed vulnerabilities in how supplychains are designed. Recent years have brought a series of disruptions that exposed vulnerabilities in how supplychains are designed.
The supplychain planner role is the most dissatisfied of any employee in the supplychain, 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.
ARC Advisory Group has been covering the SupplyChainPlanning ( SCP ) market for 17 years. The pandemic brought home the need for companies to run agile and resilient supplychains. Supplychain agility reflects a company’s ability to respond quickly to surges or plummeting demand.
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 supplychain research should be readily available and not locked behind a paywall.) (If Most see their supplychain as fixed and insular. So, you might say, so what Lora?
Demand forecasting is a critical strategy for supplychain management that can dramatically improve business decision-making and financial performance. However, securing leadership buy-in for demand forecasting technology requires a strategic approach that clearly demonstrates value.
Life for the supplychain leader is more complex. Instead, we need new approaches to sense, orchestrate and collaborate within organizations to improve outcomes.) We are living in a world of rich supplychain case studies. Each day, the Wall Street Journal features a supplychain failure as front-page news.
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.
Sales & Operations Planning (S&OP) is an established industry process that aims at finding a balance between demand and supply and streamlining cross-functional collaboration. Procurement People should learn the Sales & Operations Planning (S&OP) Process.
With freight transport accounting for a significant share of global emissions, efforts to improve logistics now extend beyond operational metrics to include resilience, regulatory compliance, and climate performance. AI is playing an increasingly pragmatic role in optimizing supplychain operations.
Each year, we compile a list of top-performing SupplyChains, termed the SupplyChains to Admire. This week, while all my friends are on vacation, I am writing the final report for the SupplyChains to Admire. Our goal is to continually redefine the definition of supplychain excellence.
The global supplychain is built on three assumptions: rational government policy, availability of reasonably priced logistics, and low variability. In March 2023, the Global SupplyChain Pressure Index fell to the lowest level since November 2008. Over the past three years, supplychain cycles shifted.
Tightening of pocketbooks: changing demand patterns. Federal Reserve Bank of New York, Global SupplyChain Pressure Index, [link] What can you do? Federal Reserve Bank of New York, Global SupplyChain Pressure Index, [link] What can you do? Measure it (both demand and supply) and use the insights.
Procurement and supplychain 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 supplychain management, and explain where the biggest disconnects typically occur.
Supplychain management has been in the news. But the intricacies of supplychain management are beyond the grasp of most. One key solution used to help manage complex supplychains is supplychainplanning (SCP). Supplychainplanning is a complex solution.
This article is a shortened version of themes & topics discussed in our newest DemandPlanning Core White Paper. Demandplanning has long been a requisite of supplychain management, but in a modern, high-speed environment, it’s become something more: a strategic lever for agility, and competitive advantage.
Supplychain efficiency is the cornerstone of success and involves the effective management of processes, resources, and technologies from procurement to production, transportation to warehousing. Healthcare providers are leveraging efficient supplychains to ensure critical supplies reach patients when needed most.
Today, we published The SupplyChains to Admire for 2023. The companies with the strongest year-over-year performance (placing in the winner’s circle for six more times in ten years) are Apple, L’Oreal, Nike, Paccar, TJX, and TSMC. SupplyChains to Admire Winners 2023 Examine Your Own Paradigm.
The Connected SupplyChain. Drip Digital SupplyChain. Autonomous SupplyChainPlanning. Self-Healing SupplyChains. Touchless SupplyChains. The issue is that when companies optimize functional metrics, they throw the supplychain out of balance and sub-optimize value.
It is crucial to assess the organization’s technological infrastructure, supplychain processes, and compliance frameworks to ensure they are aligned with DPP requirements. Its decentralized nature reduces the risk of a single point of failure, enhancing data security across the supplychain.
When I started my business in 2012, I frequently wrote about the future using the moniker of SupplyChain 2020. We had just recovered from a recession, and my goal was to help supplychain leaders create a better supplychain by the end of the decade. At that time, SupplyChain 2020 seemed so far away.
SCB Feature Report From DPW: What’s Next for AI in SupplyChain? That’s because the promise of artificial intelligence for supplychain operations is huge. It could do more to accelerate the journey of supplychain operations from the backroom to the boardroom than any other change. trillion to U.S.
Ever feel like your supplychain is a tangled mess of spreadsheets, frantic phone calls, and last-minute scrambles? That’s where data analytics comes in. It’s the key to transforming your supplychain from a source of frustration into a well-oiled, profit-generating machine. Let’s dive in.
While not a comprehensive free trade agreement, the deal introduces select changes that will affect transatlantic supplychains, particularly in automotive, metals, agriculture, and pharmaceuticals. beef from 1,000 to 13,000 metric tons , removing the 20% tariff within that limit. including those from the UK.
Sustainability isnt just a corporate goal anymoreits a supplychain requirement. Schneider Electrics new Environmental Data Program gives logistics professionals unprecedented access to carbon and sustainability metrics, covering over 70% of its product turnover. Read the full article on ARC Advisory Group.
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