Logistics Viewpoints

SEPTEMBER 19, 2023

Supply chain executives must evolve from cost and service as the key objectives for optimal demand-supply balancing towards the “quadfecta” of cost, service, resiliency, and sustainability. Metrics such as lead-times, forecast accuracy, inventory levels, and service are used to measure operational risks.

Supply Chain Design Software 266

Supply Chain Design Software Supply Chain Design Supply Chain Planning Software Supply Chain Software 266

Supply Chain Shaman

JULY 12, 2013

Demand volatility is escalating, product portfolios are more complex, and supplier networks are harder to manage. ” The technology investments from the last decade are not meeting expectations. Use tools like network design optimization and simulation modeling to help people model trade-offs.

Supply Chain Design Software 266

Supply Chain Design Software Supply Chain Planning Software Modeling Modeling Software 266

Supply Chain Shaman

NOVEMBER 21, 2023

Fred owned logistics and customer service for the organization. In the early 1980s, As a result, we did not have a perpetual inventory signal. Without a perpetual inventory signal, we were never synchronized on where to place customer orders. As a result, inventories ballooned after the DRP implementation.

Supply Chain Planning Software 339

Supply Chain Planning Software Inventory Reduction Supply Chain Design Software Cost Reduction Strategies 339

Logistics Viewpoints

JUNE 19, 2023

However, AI’s inability to solve the very limited problem of ensuring that inventory is located in the right place in a warehouse suggests that planners don’t have to worry too much about job security. For fulfillment to be efficient, a warehouse needs the right inventory located in the right slots in a warehouse.

Supply Chain Design Software 261

Supply Chain Design Software Supply Chain Planning Software Supply Chain Network Software Optimization Software 261

Supply Chain Shaman

NOVEMBER 15, 2021

Inventories in the chemical industry are at record lows: a forerunner of bad days ahead. While we will recover quickly in retail (moving from painful shortages to a glut of inventory), the chemical industry–sitting four and five layers back in the supply chain–takes longer to recover. Each requires design and fine tuning.

Supply Chain Design Software 285

Supply Chain Design Software Supply Chain Planning Software Sourcing Strategies Supply and Demand 285

Supply Chain Shaman

JANUARY 14, 2013

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. You got it!

Supply Chain Planning Software 260

Supply Chain Planning Software Supply Chain Design Software Optimal Sourcing Modeling 260

Supply Chain Shaman

JUNE 21, 2014

This week, I will speak at Llamasoft’s conference on improving supply chain network design. The gaps in our technologies are a barrier, but should not stop us from redesigning to improve performance. Service level is our most important metric. Reliability in both of these metrics is critical.

Case Study 282

Case Study Supply Chain Design Software Supply Chain Planning Software Supply Chain Design 282

Supply Chain Shaman

MAY 1, 2023

My primary insight is that many of the technology initiatives that were underway at the start of the disruption did not serve us well. The use of descriptive analytics along with agile planning techniques (what-if analysis, discrete event simulation, and network design) helped. Inventory as Waste. Inventory as a Buffer.

Inventory Reduction 246

Inventory Reduction Cost Reduction Strategies Waste Reduction Resource Reduction 246

Supply Chain Shaman

MAY 3, 2015

When it comes to the management of inventory in value chains, frustration abounds. Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” Inventory is the culmination of many business decisions.

Inventory Reduction 150

Inventory Reduction Supply Chain Design Software Supply Chain Planning Software Inventory Management Software 150

Supply Chain Shaman

OCTOBER 7, 2012

For the purpose of this discussion, I define agility as the design of the supply chain to deliver the same cost, quality and customer service given a level of both market volatility and process variability. It requires design. Q: Is it only inventory disrupting the agility resulting from inaccurate forecasts by S&OP?

Supply Chain Design Software 231

Supply Chain Design Software Supply Chain Planning Software Optimal Sourcing Inventory Reduction 231

Supply Chain Shaman

JUNE 7, 2018

Confluence of New Technologies. In contrast, the digital supply chain transformation solves problems and defines opportunities based on the confluence of technologies shown in Figure 1. When we study 600 public companies by peer group, at the intersection of inventory turns and operating margin, only 5% drive improvement.

Supply Chain Planning Software 231

Supply Chain Planning Software Supply Chain Design Software Optimization Software Forecasting Software 231

Supply Chain Shaman

FEBRUARY 26, 2024

Over the next five weeks, seventy business/technology and consulting leaders will complete the course. Based on the work with Georgia Tech, we are getting clear on which metrics matter by industry. As companies adopt a balanced scorecard, the functional metrics shift to a focus on reliability. Analyze inventory health.

Modeling 207

Modeling Supply and Demand Optimal Sourcing Supply Chain Planning Software 207

Supply Chain Shaman

AUGUST 7, 2019

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. When a company contacts me to help them with their supply chain, the pain is usually a gap in customer service.

Supply Chain Design Software 253

Supply Chain Design Software Supply Chain Planning Software Supply Chain Software Supply Chain Design 253

Logistics Viewpoints

JUNE 1, 2023

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 network design solutions. This means continuously assessing the trade-off between the total cost to serve and meeting customer demand and minimizing lost sales.

Supply Chain Planning Software 223

Supply Chain Planning Software Supply Chain Design Software Supply Chain Planning Supply Chain Software 223

SCMDOJO

MAY 15, 2024

This document serves as a roadmap for professionals involved in supply chain network design and optimization, providing valuable insights and practical guidance at every stage of the process. This initial step enables tailoring the supply chain network design to meet specific needs effectively.

Optimal Sourcing 88

Optimal Sourcing Network Design Software Supply Chain Design Software Modeling 88

Supply Chain Shaman

SEPTEMBER 28, 2022

Last week, after booking an additional $1B in unexpected supplier costs in the third quarter, the CFO led the company’s focus on restructuring to “support efficient and reliable sourcing of components and internal development of key technologies and capabilities.” Multi-tier inventory management by itself was not sufficient.

Manufacturing Procurement 195

Manufacturing Procurement Supply Chain Design Software Network Design Software Supply Chain Planning Software 195

Supply Chain Shaman

DECEMBER 18, 2014

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 network design optimization alternatives. Recognize that these are tactical processes.

Supply and Demand 279

Supply and Demand Forecasting Supply Chain Planning Software Forecasting Software 279

AIMMS

FEBRUARY 20, 2015

Interview with Lora Cecere, Founder and CEO of Supply Chain Insights and Author of Supply Chain Metrics that Matter ( published December 2014 ). She is the author of the enterprise software blog Supply Chain Shaman , which attracts 5,000 readers weekly. Metrics that Matter became a three year research project.

Metrics 120

Metrics Supply Chain Planning Software Supply Chain Design Software Supply Chain Software 120

Supply Chain Shaman

JANUARY 8, 2024

Intuitive Surgical, L’Oreal, and Sleep Number drove excellence through product and service innovation to outperform their peer groups. We are currently working with the statistics group at Georgia Tech to understand how the relationship of these metrics changed over time, but more on that in a later blog.)

Supply Chain Design Software 243

Supply Chain Design Software Supply Chain Planning Software Modeling Software Supply Chain Network Software 243

Supply Chain Shaman

MARCH 6, 2015

Active Work on Design and Modify. The use of network design technologies, in combination with inventory optimization technologies, drives a higher level of satisfaction for the Center of Excellence. Network design technologies are growing up and becoming part of enterprise architectures.

Supply Chain Design Software 150

Supply Chain Design Software Network Design Software Inventory Reduction Supply Chain Design 150

Supply Chain Shaman

MARCH 6, 2015

Active Work on Design and Modify. The use of network design technologies, in combination with inventory optimization technologies, drives a higher level of satisfaction for the Center of Excellence. Network design technologies are growing up and becoming part of enterprise architectures.

Supply Chain Design Software 150

Supply Chain Design Software Network Design Software Inventory Reduction Supply Chain Design 150

Supply Chain Shaman

DECEMBER 7, 2022

Business leaders came and went as an analyst, technology shifted, and markets ebbed and flowed. Colgate outperformed P&G in Return on Invested Capital (ROIC), and P&G exceeded Colgate in inventory turns. The most frequently cited valuable technology investment during the pandemic was descriptive analytics.

Inventory Reduction 55

Inventory Reduction Material Savings Supply Chain Strategy Price Mitigation Strategies 55

Supply Chain Shaman

OCTOBER 8, 2019

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. Background. The supply chain is a complex non-linear system.

Supply Chain Design Software 189

Supply Chain Design Software Inventory Reduction Supply Chain Planning Software Forecasting 189

Logistics Viewpoints

OCTOBER 23, 2024

This requires a thorough readiness assessment, selection of appropriate technology, and careful integration with existing business processes. It is crucial to assess the organization’s technological infrastructure, supply chain processes, and compliance frameworks to ensure they are aligned with DPP requirements.

Resource Reduction 248

Resource Reduction Vendor Strategies Inventory Reduction Price Mitigation Strategies 248

Logistics Viewpoints

SEPTEMBER 25, 2024

In retail environments, IoT-enabled systems manage inventory levels and provide feedback about stock conditions, further enhancing the DPP’s accuracy. First, improving cybersecurity protocols is critical, with encryption technologies and secure communication methods helping to safeguard data integrity.

Internet of things 262

Internet of things Real-time Visibility Supply Chain Design Software Supply Chain Network Software 262

Supply Chain Shaman

MAY 13, 2015

I knew nothing about the world of logistics, inventory management and order optimization. From the research, we know that when organizations have source, make and deliver reporting to the same leader, that supply chain performance improves (intersection of operating margin and inventory turns). The year was 1985.

Supply Chain Design Software 150

Supply Chain Design Software Supply Chain Design Supply Chain Planning Software Agile and Lean Supply Chain 150

Supply Chain Shaman

FEBRUARY 14, 2022

However, this mature team found the technology insufficient. They gave lip service to the need for IT standardization, but ran their process on a custom built model that enabled reverse bill of material, and profitability analysis. Industries carried on average 32 days more inventory in 2020 than in 2007. (I Mistake #3.

S&OP 195

S&OP Supply and Demand Procurement Analytics Manufacturing Procurement 195

Supply Chain Shaman

JUNE 26, 2016

The combination of technology along with the advancements in transportation made it possible. The winners drive improvement while posting financial results in the Supply Chain Metrics That Matter ahead of the peer group. Inventory Turns. However, globalization comes with responsibility. Operating Margin.

Supply Chain Design Software 195

Supply Chain Design Software Supply Chain Planning Software Agile and Lean Supply Chain Supply Chain Design 195

Supply Chain Shaman

NOVEMBER 15, 2021

Inventories in the chemical industry are at record lows: a forerunner of bad days ahead. While we will recover quickly in retail (moving from painful shortages to a glut of inventory), the chemical industry–sitting four and five layers back in the supply chain–takes longer to recover. Each requires design and fine tuning.

Supply Chain Design Software 195

Supply Chain Design Software Supply Chain Planning Software Sourcing Strategies Supply and Demand 195

Supply Chain Shaman

NOVEMBER 15, 2021

Inventories in the chemical industry are at record lows: a forerunner of bad days ahead. While we will recover quickly in retail (moving from painful shortages to a glut of inventory), the chemical industry–sitting four and five layers back in the supply chain–takes longer to recover. Each requires design and fine tuning.

Supply Chain Design Software 195

Supply Chain Design Software Supply Chain Planning Software Sourcing Strategies Supply and Demand 195

Supply Chain Shaman

MARCH 18, 2018

Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. The concept of the Effective Frontier is that best in class companies align functional metrics to balance growth, cost, inventory and Return on Invested Capital (ROIC) performance while balancing customer service metrics.

Optimal Sourcing 173

Optimal Sourcing Supply Chain Planning Software Supply Chain Design Software Supply Chain Optimization 173

Supply Chain Shaman

MAY 21, 2013

The most common reporting relationship in the supplier organization is to a leader of supply (focus on logistics, distribution, materials sourcing and customer service). They lack the greater understanding of planning and value network design. Eliminate rebates, direct payments and services. Question conventional models.

Modeling 240

Modeling Modeling Software Pharmaceutical Procurement Analytics 240

RFgen

NOVEMBER 27, 2024

Forget static network designs and gut-feel decisions. By harnessing the power of data science and analytics, you can gain end-to-end visibility across your entire network, breaking down information silos and optimizing every stage of your operations. That’s where data analytics comes in.

Optimal Sourcing 84

Optimal Sourcing Supply Chain Optimization Modeling Inventory Reduction 84

Supply Chain Shaman

JUNE 29, 2015

In our research for the book Supply Chain Metrics That Matter , we find that this is the case for 90% of companies. While companies want to improve costs and inventory, most are going backwards. While many consultants will wave their hands and promise improvements in costs and inventory through projects, take pause.

Supply Chain Design Software 150

Supply Chain Design Software Inventory Reduction Supply Chain Planning Software S&OP 150

Supply Chain Shaman

AUGUST 11, 2015

Technology has not caught up. The value network of suppliers and logistics providers is largely managed by spreadsheets and email with no system of record for interactions. A disruption is a failure in cost, quality or customer service. Focus on Multi-Tier Inventory Management. It is About Much, Much More than Technology.

Supply Chain Design Software 150

Supply Chain Design Software Supply Chain Planning Software Supply Chain Design Supply Chain Software 150

Talking Logistics

JANUARY 7, 2016

You can use modeling technology to accurately identify and quantify potential supply chain risks and their corresponding costs, and develop mitigation strategies through scenario optimization and advanced analytics to build resiliency into your operations. Understanding the Resiliency of Your Network.

Modeling 70

Modeling Supply Chain Design Software Supply Chain Design Modeling Software 70

Supply Chain Shaman

OCTOBER 25, 2021

Container inventory is imbalanced. Fourteen of twenty-eight industries have rising inventories. Change internal metrics to a balanced scorecard and force the functions to work better together. The design, and redesign, of supply chains needs to be continuous based on market data. Invest in network design technologies.

Analytics Software 195

Analytics Software Analytics Supply Chain Design Software Supply Chain Planning Software 195