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In follow-up qualitative interviews, one of the largest issues with organizational alignment was metric definition and a clear definition of supply chain excellence. In my post Mea Culpa, I reference my work with the Gartner Supply Chain Hierarchy of Metrics. Error is error, but is it the most important metric? My answer is no.
I laugh when business leaders tell me that they are going to replace their current supply chain planning technologies with “AI.” Each supply chain planning technology at the end of 2024, went through disruption–change in CEO, business model shift, layoffs, re-platforming and acquisitions. You are right.
Samuel Parker and Joe Lynch discuss DAT iQ: the metrics that matter. Samuel is an experienced market strategy and product leader with over 10 years of experience in supply chain logistics and innovation, specializing in helping technology companies build high-performing Go-to-Market teams. Samuel has his B.A.
How 3PLs Can Gain Visibility and a Competitive Advantage Offering Automated Billing and a Self-Service Interactive Customer Portal It’s hard to imagine a third-party logistics (3PL) business today operating without some form of a warehouse management system ( WMS ) connecting the digital dots. But can technology do more?
When it comes to running a company, when things break down executives have traditionally said “we need to improve our forecasting!” Would better forecasting accuracy be a good thing? Unfortunately, most companies cannot, and will never be able to, consistently rely on highly accurate forecasts. Absolutely!
We need planning platforms to keep up with all the changes. This means we need more agile, flexible, and scalable planning platforms to process and consolidate new data sources, drive insights using advanced analytics such as AI/ML to drive autonomous decisions, and expand collaboration within and outside our organizations.
End-to-end supply chain visibility, planning, and execution support software are critical in agile supply chain performance. CPG companies that utilize an autonomous supply chain technology see a reduction in their inventory and cost and an increase in revenue. each with discrete plans generated typically in sequential batch runs.
Clear operating strategy and definition of supply chain excellence across plan, source, make and deliver. Most companies buy decision support technology, but do not redefine work to improve decisions. A shift from functional metrics to a balanced scorecard. The focus on functional metrics sub-optimizes balance sheet results.
Proactively adopting cleaner energy sources ensures alignment with these evolving regulations. The industry’s dependency on traditional energy sources necessitates an urgent shift toward cleaner alternatives. Retrofitting existing infrastructure with energy-efficient technologies further enhances sustainability efforts.
The key areas to consider when upgrading to the cloud include: The Value of Cloud Technology Cost Competitiveness Performance Expectations Upgrades Responsiveness Support Expertise & Response The Value of Cloud Technology Which business drivers and advantages are motivating companies to shift to the cloud?
They say usage of SCP BPO increased about 25% this year, driven by challenges with end users’ talent retention, technology constraints, and inefficient planning processes. Gartner says that the most common outsourced SCP processes are inventory management, statistical forecasting and service parts planning. versus $4.84
Being listed on a last-mile-delivery service platform and reaching a much broader customer base beyond the neighbors became a must-have for survival. Digital commerce efficiently requires the digitalization of many customer-facing operations and sourcing and procurement. This includes internal and external data sources.
While the terminology evolved, the underlying thesis of S&OP has stayed the same, i.e., bridge the divide between sales forecasts and operational plans while respecting the budget. More recently the technology has evolved to a point where such processes can be conducted at a faster cadence than a typical monthly cadence that was the norm.
Top 3 Demand Forecasting Mistakes —How To Avoid Them with Demand planning software Demand forecasting is a critical facet of successful business operations, acting as the helm guiding companies through the rocks hiding beneath the water of market demands. What is Demand Forecasting?
Implementation of Sales Forecasting. The focus on sales forecasting started shortly after Y2k. Few companies measured the impact on error and bias through the rigor of Forecast Value Added (FVA) analysis. While the input from sales on market trends is invaluable, sales should never be asked to forecast. The reason?
It is just not enough to do a software upgrade or slowly push continuous improvement projects. He did this first by implementing demand sensing from Terra Technology (now E2Open) eight years ago. Completed in 2012, the ERP project forced the company to standardize organizational design, roles, and metrics. Nick does this well.
I’ve always maintained that improving demand forecast accuracy, as helpful as it can be, shouldn’t be the end goal itself, but simply a means to the end. A recent report from Gartner agrees, focusing specifically on the challenge of building a better business case for improved forecast accuracy.
A large consumer products manufacturer with nine Enterprise Resource Planning (ERP) instances and several divisions wanted to discuss forecasting. The team was not calibrated on the role of forecasting and the basics around process excellence. ” The next call was with a technology provider. What Is a Forecast Anyway?
Self-reported projections of the ocean carriers forecast that the industry is posting over $200B in profits. The strategy department in most shipper organizations sits in finance while the network design technology expertise is usually a much lower level in operations. Let me repeat this, “$200 Billion in profits.”
Define business objectives: Clearly define the business objectives and key performance indicators (KPIs) that your AI-driven supply chain management system aims to optimize. Collaborative discussions can help identify relevant data sources and metrics that capture the end-to-end supply chain process and align with overall business goals.
Aside from mitigating risk and saving organizations money, Procurement teams have an opportunity to add value by working closely with suppliers to reduce carbon emissions while ensuring supply chain continuity through diversity and proper forecasting. Tracking the Metrics that Matter. Inflation Metrics. Risk Metrics.
A big bang technology focus has not worked. Enlightened leadership that focuses on the management of the supply chain as a complex system. Aligned Metrics. While it is the best system of record in the industry, the optimizer and the planning software overall is not equal to best-of-breed solutions.
Over my 25+ year supply chain career I have worked for several distribution-intensive companies and every single one of them had a focus on improving forecast accuracy. Achieving a high SKU level forecast accuracy is a top goal for supply chain planning teams regardless of industry, size, location, etc.
Comparing a supply chain planning platform against an ERP system that offers supply chain management capabilities is a challenge. So why are companies increasingly choosing the highly focused capabilities of the Logility® Digital Supply Chain Platform over the broad-spectrum offerings of ERP vendors?
Year after year, well intentioned people toiled against improving metrics that reduced, not improved, the effectiveness of the supply chain. The argument that I want to make here is that the supply chain problem has changed, but we are implementing the same old technologies without stopping to realign against new goals.
During his tenure in the industry, he built innovative pricing and forecasting models, leveraging internal and external data sources to improve internal decision-making and increase profitability. Prior to joining DAT, Adamo led the pricing and decision science teams at FedEx.
Continuing Disruptions in Transportation and Sourcing Materials After the pandemic, retailers are faced with new challenges and disruptions due to global conflicts, trade restrictions, and now recessions. With the use of advanced technologies, planning decisions can also be automated.
The global supply chain landscape is undergoing significant transformations, influenced by rapid technological advancements, shifting consumer expectations, and the intricacies of international commerce. Preparing the next generation to excel in this dynamic field requires more than traditional education methods.
However, my worldview is that the larger shifts are far more systemic requiring a call for action that is going largely unheard. I would like for us to move past the conventional view of sourcing strategies and globalization to drive improvements to the supply chain in a variable world. Forecastability. Let me explain.
If you’ve been in supply chain for any length time, you might be wondering what caused demand forecasting to develop so many different ‘personalities’ over the years. Demand forecasting, planning, sensing, shaping…what’s going on? Demand Forecasting. Demand forecasting describes the decades-old science of predicting demand.
Metrics such as lead-times, forecast accuracy, inventory levels, and service are used to measure operational risks. Design and planning software has been utilized for the last several decades to manage these operational risks. Natural risks such as weather, fires, pandemics, etc., fall under this category as well.
As a member of Logility’s research and development team with a specialization in generative AI, I have a front row seat to witness the rapid expansion of artificial intelligence technology. In this blog, I‘ll address 10 common generative AI myths to demonstrate the value of this exciting technology.
So, the promise of using statistical algorithms, forecasting and predictive analytics is now added to the list of a company’s number one priorities. Here are a few steps that you will need to take to deploy your forecasts successfully. Phone * Company * Job Title * Zip Code * Source Asset Source Download ID.
” Corporations serve international markets, and the source of rare minerals (so critical for the evolution of the green supply chain) is primarily Asia. Others argue the demise of global sourcing; might I add caution? Technologies and processes need change. My response is “Hogwash.” The pandemic redefined work.
Thus, organizations must make sure that data are complete, accurate, timely, and consistent as well as capture the required metrics. Data accuracy to aid in decision-making — One must have a system to draw insight from data. Such a system should be able to convert spend into emissions so that you can establish baselines.
In simple terms business procurement is the process of locating and acquiring goods and services from external sources for the business to use. Procurement activities include planning, sourcing, and negotiation, along with risk management, legal and value analysis. Undamaged shipment rate.
Anyone who has done demand planning knows it is extremely complex, with forecasting challenges and rapidly shifting consumer demand, often exacerbated by seasonality, new product introductions, promotions, and myriad causal factors (e.g. weather, social media). Take a Phased Approach: Establish a Foundation and Layer on Complexity.
The goal of a forecast? Current planning taxonomies do not plan across make, source, and deliver answers bi-directionally. Continual reaction to real-time data streams introduces nervousness into the system. Integrating data does not align an organization motivated by functional metrics. What is supply chain excellence?
Businesses adopt online procurement systems to mitigate risks and to streamline requisitions, approvals, order placement, and spend management. However, with numerous e-procurement software vendors available, choosing the right tool can be overwhelming. Keep reading to learn: What is an online procurement system?
Manufacturing systems and regulatory compliance are considered to be very complex, coupled with the limited number suppliers due to the high barriers to entry. There are two things Boeing and Airbus have in common, utilization of lean manufacturing system and strategic sourcing concept. However, products go to over 2.4
While most consultants and technologists want to sell technology, and are eager to slap in a new piece of software, my caution is to slow down and better understand root issues before having a technology discussion. ” Or alternatively, “Is there data that could be sourced to help?” Step Three.
Without a doubt, Apple Inc is the world leader in Innovation, Branding and Software Ecosystem. Supply Chain Map is the way to express a large system from the points of origin to points of consumption in simple to understand manner. Some components are currently obtained from the single or limited sources. Inventory Turnover.
Source E2open Shipping Index). Current technologies and processes focus on volume trade-offs. As a result, focusing on cost and efficiency, and functional metrics throws the supply chain out of balance. Ironically, technology innovation is the highest that I have ever seen. We started the conversation with sourcing.
Which emerging technologies will have the most impact? Most of the current repetitive processes like (forecasting, reports, purchase orders & Invoicing) will be automated using various technologies. Advanced technologies like IoT, Machine learning will allow for intelligent, what if actionable scenario to act upon.
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