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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.
Supply chain excellence is easier to say than to explain. 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. The reason? Discontinued in 2011.
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?
Today, supply chain excellence matters more than ever. Until there are clear answers, business leaders should avoid buying software from companies with deep investments by venture capitalists. Kinaxis Purchase of Rubikloud. The purchase of Rubikloud by Kinaxis shows just how little the Kinaxis team knows about demand management.
The issues are largely rooted in politics and the lack of clarity on supply chain excellence. Or planned orders to purchase orders?) I observed companies use the beer game as an educational tool or a social networking activity. Use the visualization in networkdesign models to educate teams on why they should care.
The use of descriptive analytics along with agile planning techniques (what-if analysis, discrete event simulation, and networkdesign) helped. We find that companies with an analytics center of excellence drove progress faster than those with a supply chain center of excellence. Analytics investments are essential.
Maximize the value of the purchase order flow data already in the existing networks. (A A purchase order changes many times and needs synchronization. Stop Venture Capital Turnover of the Existing Networks. A major risk to the supply chain is the venture capital churn of network companies. The pattern is dangerous.
It was a story where people believed that functional excellence leads to supply chain superiority. I strongly feel that a blind focus on functional excellence will cause the supply chain to become out of balance. One that is going to eat you up! In part one of this blog series, I started the saga of the supply chain fairy tale.
In the process, there is a fine line between marketing hype and overpromising, making buying difficult. The key is that an excellent digital supply chain strategy starts with a clear goal rather than a list of technologies. I love the concepts of the digital twin and networkdesign. Who has the best approach?
In the last five years, while the physician is still important, the buying decisions transitioned from the supplier to the care provider. They lack the greater understanding of planning and value networkdesign. They are primarily focused on cost management on new purchase decisions. It is now shifting again.
The other part of my role is supporting the inventory management functions within BT Group, driving decision-making around what we buy, when we buy, and where from. We are using NetworkDesign Navigator for two purposes with different data sets: The first one is to optimize proximity in our network allocation for engineers.
What PMI needed, considering the long planning horizons, was a digital and analytics networkdesign and supply optimization tool. Networkdesign and optimization tools help companies understand how to best leverage enterprise assets across their supply chain networks and where their production volumes should be optimally located.
Like Linus clinging to his blanket, supply chain teams make most of their decisions on Excel spreadsheets. Demand latency (the time from purchase by the customer to order visibility by the manufacturer) is weeks and months. Relational database structures are a barrier to modeling relationships and flow. The So What And Who Cares?
Concurrent macro forces–material shortages, war, shifts in consumer buying patterns, logistics constraints, inflation/recession, and climate change– are reshaping today’s reality necessitating the need for a supply chain reset button. Supply chain excellence happens when leaders manage complex non-linear flows.
I define supply chain excellence as year-over-year performance better than the peer group on this balanced scorecard. 06/2020 Kinaxis buys Rubikloud for 60M$. Other forms of decision support include revenue management, trade promotion management, cost-to-serve, and networkdesign. They did it.
He is very passionate about developments in the Supply Chain arena and is always seeking excellence in his drive for efficiency & innovation in Supply Chain operations” – a quality that is very relevant to face up to the many Supply Chain challenges in our path! “I The silo mentality of traditional organizations must be broken.
Q: You mention that Executive Buy-in is the biggest stumbling block. What techniques are being used to get executive buy-in? Q: You touched on robust networkdesign tools which allow you to test your network to determine your agility. They have the most “packaged” network simulation capabilities.
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.
Or agreement on the definition of supply chain excellence. As a result, functional excellence anchors action. The focus is on digitization—automating today’s processes—versus rethinking process excellence based on the art of the possible. The design principle is that history is a good predictor of the future.
Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” Networkdesign concepts are gradually gaining acceptance, but too few design their networks. These are my thoughts. Any misconceptions to add?
The focus is on the role of supply chain finance in driving supply chain excellence. The design of the conference includes tours of several modern warehouses and centers of excellence. Granular data by volume is a must to be able to manage replenishment, networkdesign, and inventory targets. Time horizon.
Demand latency is two-eight weeks delayed from consumption purchase to translate to an order. I kept pressuring this client to use their channel data locked into the Excel files in their sales account teams. I want to help the team, but I don’t think that the answer is rooted in buying another technology.”
There is not a one-to-one relationship between a container and a purchase order. As a result, a purchase order can cover multiple containers; and a container can carry multiple purchase orders. The average purchase order changes 3-4X before shipment. If you are a shipper, take these actions: Design for Variability.
The other part of my role is supporting the inventory management functions within BT Group, driving decision-making around what we buy, when we buy, and where from. We are using NetworkDesign Navigator for two purposes with different data sets: The first one is to optimize proximity in our network allocation for engineers.
The third issue is the lack of understanding that global processes–to maximize the economies of scale in transportation and material buying–need strong governance. Without this discipline, the global organization cannot actualize buying power in procurement or lower costs and improve costs/customer service in transportation.
Today’s shopper prefers to buy online and get products delivered at the best possible time and place, resulting in key shifts in the supply chain. Strong capabilities in supply chain planning and networkdesign. Clarity of supply chain strategy and a clear definition of supply chain excellence. A large U.S.
In 2012 I built on these concepts to define the market-driven value network. The definition: an adaptive network focused on a well-defined value-based outcomes. A value network governed and defined by customer segmentation and a clear understanding of what drives value for the customer. Buffer Design.
While traditional supply chain processes evolved from functional excellence definitions for source, make and deliver from the inside-out; to make the digital pivot and become more market-driven, companies need to define new supply chain processes outside-in. The design needs to be from the customer’s customer to the supplier’s supplier.
As we walked, I reflected and kept asking Scott, “How can we optimize outcomes if companies are not clear on what defines excellence?” Sean strongly believed that the sales group knew what the customers wanted and that tight supply chain integration to sales information would drive excellent results. At the first meeting.
As we walked, I reflected and kept asking Scott, “How can we optimize outcomes if companies are not clear on what defines excellence?” Sean strongly believed that the sales group knew what the customers wanted and that tight supply chain integration to sales information would drive excellent results. At the first meeting.
Concurrent macro forces–material shortages, war, shifts in consumer buying patterns, logistics constraints, inflation/recession, and climate change– are reshaping today’s reality necessitating the need for a supply chain reset button. The answer lies in networkdesign, demand sensing, and the simplification of product platforms.
Developed a process of excellence in supply chain collaboration. Implemented cross-docking in its supply network to enable inventory reductions. Supply Chain NetworkDesign. Development of analytical and networkdesign skills within the company’s supply chain teams.
Most demand planning happens in Excel Ghettos not in the expensive technologies implemented in 90% of manufacturing companies. Use The tactical planning horizon to make asset decisions, determine the best networkdesign, design form and function of inventory, and establish sourcing strategies. This is Planning by Design.
19 average) and 3 times better ROIC for the period (33% versus P&G’s 11%), note that none of these three household products companies made progress on supply chain excellence in the period of 2013-2015. Cisco actively owns and builds the supply chain value network. While Colgate posted better margin (.21
Lord says that while three broad categories of inventory - structural, operational and situational - can overlap, each category should first be examined separately ( Supply Chain Leaders Must Orchestrate Three Decision Categories for Inventory Excellence , 9 April 2018, Paul Lord). Structural inventory is a direct result of design choices.
Today’s shopper prefers to buy online and get products delivered at the best possible time and place, resulting in key shifts in the supply chain. Strong capabilities in supply chain planning and networkdesign. Clarity of supply chain strategy and a clear definition of supply chain excellence. A large U.S.
The supply chain field offers a wealth of opportunities for women, making it an excellent career choice for many reasons: 1. The demand for strategic thinking and problem-solving skills creates a path for women to excel. 10 years of experience in purchasing and procurement, the tobacco market in particular.
As the largest home improvement retailer in the United States, Home Depot is an excellent example of a business powered by an evolving global supply chain. Digital and mobile commerce have transformed how humankind buys. Not to mention, the plethora of options and flexibility to make purchases, anytime anywhere. Sounds simple?
In our most recent Supply Chain Matters This Week in Supply Chain Tech column , we highlighted the announcement from supply chain technology provider Logility , a wholly owned subsidiary of American Software , regarding this provider’s completion of the acquisition of supply chain networkdesign technology provider Starboard Solutions.
Without Procurement, or Purchasing, most organizations could not even function. We also discuss how Procurement, a buying organization, must sell its value to the rest of their organization. At it’s core both jobs involve Strategic Sourcing and Purchasing, or Procurement. 7 KPIs Your Procurement Team May Be Ignoring!
A Blueprint for Supply Chain Optimization This webcast delves into the process of a successful networkdesign initiative and the outlines the steps necessary for success. White Paper. Consortium Report. Contact Us. Webinar On Demand.
Not only does it affect supply, procurement, and purchasing, but it also impacts sales, marketing, and human resources. Once you move from a reactive workflow to a proactive workflow, you can take your data and fuel your proactive supply chain planning, supply chain design, networkdesign, supplier selection, and supplier management.
The tools for determining Cost To Serve include standard spreadsheet applications, such as MS Excel, and networkdesign modeling software. Up to 7,000 SKUs were being purchased in a process replete with inefficiencies such as multiple handling, redundant stock levels, and duplicated order processing.
Being named as a sample vendor, we feel validated in our tireless pursuit of excellence and innovation in one of the most challenging areas of logistics.” As a result, expectations around delivery times and the post-purchase experience have risen significantly. ” How last-mile technologies are making a difference.
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