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Transportation, warehousing, and manufacturing collectively contribute significantly to carbon emissions, making these areas critical for meaningful change. Smart energy management systems further enhance efficiency by tracking and optimizing energy use in real-time. Another crucial focus area is sustainable packaging.
Many organizations are now realizing that resilience is not just a supply chain add-on; it’s a fundamental capability. When a critical Tier-2 supplier is affected by a tariff policy change or regional shutdown, the ripple effects often catch manufacturers by surprise. What if lead times from a key port double?
Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics. Just focus on geography and forget about anything else. by John Westerveld. Don’t care.
Scaling manufacturing operations is crucial for business growth but presents unique challenges. Balancing increased demand with consistent quality and controlled costs is difficult but essential for manufacturers looking to expand. Successfully scaling manufacturing requires more than just adding resources.
Once upon a time, the world of manufacturing was a relatively stable place. So how does a manufacturer navigate this rollercoaster? And that’s where real-time perpetual inventory signals come in. According to Gartner , these issues can lead to missed manufacturing deadlines and wasted capital.
But instead of guessing what’s happening, you’ve got real-time insights at your fingertips. That’s the power of manufacturing data collection. It’s not just about collecting numbers it’s about turning those numbers into action. Its the foundation of modern manufacturing efficiency.
Ibrahim Al Syed, the director of digital manufacturing at Celanese, was surprisingly forthcoming about how Celanese developed these capabilities at ARC Advisory Groups 29th Annual ARC Industry Leadership Forum. The company has 55 manufacturing sites across the world. The company runs some plants, and some are operated by third parties.
In the automotive sector, manufacturers are simultaneously reducing inventory costs and delivery times. We’ll examine the key components of efficient supply chains, explore essential performance metrics, and uncover the fundamental drivers that influence efficiency.
We had just recovered from a recession, and my goal was to help supply chain leaders create a better supply chain by the end of the decade. At that time, Supply Chain 2020 seemed so far away. When I started my business in 2012, I frequently wrote about the future using the moniker of Supply Chain 2020. My focus was simple.
The promise of a well-intended consultant just sounds sooooooo good. 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.)
Warehouse optimization isn’t just a buzzword; it’s a lifeline for businesses seeking to thrive in the demanding world of modern commerce. Warehouse optimization isn’t just a buzzword; it’s a lifeline for businesses seeking to thrive in the demanding world of modern commerce. Ready to get started?
These include: Challenges getting ESG metrics from suppliers, partners, and other third parties. Time-consuming manual processes to report on ESG metrics. Cloud applications that manage your supply chain provide real-time access—a single source of truth no matter where you are. But cloud applications are just the start.
For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. Process latency, the time for an organization to make a decision using a traditional S&OP process, is two-to-six weeks. The traditional leader values cost reduction but is blind on how to value time. Unrest in Sudan.
The output was just not helpful. We have too hard-wired solutions bolted into IT architectures to enable the flexibility needed by business leaders during times of high variability. Advanced planning evolved with a focus on modeling manufacturing constraints. Over time, this changed. It will not be over soon. The reason?
My client attempted to have a supply chain discussion to improve flow, and his executive group just did not get it. I worked three layers down in the organization for a well-established leader in manufacturing named Dan. Dan had a very manufacturing view and Fred focused on logistics. The metrics were not aligned.
From retail and food and beverage to manufacturing and life sciences, companies from a wide variety of industries are realizing the benefits of the technology, revolutionizing how they operate, collaborate, and generate value. Manufacturers use cloud technology for predictive maintenance, production planning, and supplier collaboration.
In a survey of 150 global manufacturing executives, 47% committed to improving supply chain visibility and tracking. Supply chain visibility often means “where’s my stuff,” or the ability to trace parts in transit from the manufacturer to the final destination. Agility to act on transparency.
Second, they adapt over time as market structures and strategies evolve. We consistently see that companies focused on functional excellence–a focus within a functional silo like manufacturing, transportation or distribution– or singular metrics– like inventory or costs– underperform against their peer groups.
But just how bad was it? They can then use the data to provide an apples-to-apples benchmark on a variety of innovative supply chain metrics applicable to the grocery supply chain. Even in the best of times, this method has limitations. Dramtatically Reduced Service in Grocery Stores Since Pandemic was Declared.
Frank, the line manager for manufacturing, dominated the meetings. The changeover times for the CM Bartlelts was 5X more prolonged than the more agile IM machines. Equipment washouts represented 11% of the change over time and were a significant barrier to agility. Sharing My Experience. The year was 1982.
In today’s dynamic market, procurement is far more than just a buying and purchasing center. Forward-thinking organizations have transformed the department into an untapped gold mine that creates value for the entire end-to-end manufacturing process—from design and sourcing to production and delivery.
During the 1980s, I was on a management team for a large manufacturer. The Company was attempting to gain economies of scale by grouping manufacturing technologies within a common infrastructure to reap the benefits of a co-generation facility, a centralized warehouse, and a talented administrative team. Why Jump Now?
This means routinely bringing together the C-suite, finance, supply chain, manufacturing, sales and marketing teams so everyone is seeing, working from and agreeing to an aligned plan that achieves optimal business outcomes. It’s logical that a machined parts manufacturer and a grocery chain would review different KPIs in their IBP processes.
But even in more normal times, a supply plan usually can’t be fully executed. But, more commonly there are downside surprises: customers lower the volume they want on an order, delay their order, there are manufacturing problems, logistics problems, staffing issues, to name the most obvious downside risks. Stuff happens.
But it is not just service level and costs that can be traded off. A planner could ask the SCP engine to achieve 95% service, with CO2 emissions under of under a million metric tons at a given factory in the coming month. Supply chain planning takes place at various time horizon s. Supply chain management has been in the news.
At that time, manufacturers talked about customer-centric supply chains, but were afraid to aggressively adopt ecommerce strategies. Manufacturers, today, are aggressively pursuing e-commerce strategies. Get Good at Having a Real-time Perpetual Inventory Signal. In 2014, ecommerce strategies grew in importance.
Just as the saguaro is both nursed by and supports life in its ecosystem, it behooves supply chains to invest in their ecosystems, both suppliers and employees. It may feel like stormy times for supply chain right now, but not all rain is bad. Invest in your ecosystem. cm) in its first ten years.
The capabilities are just too different. I recently presented this slide to a group of consultants, and a person that I love in the audience raised his hand and said, “Lora, let’s just face it. This slide supports that what we have today just sucks. It cannot be adequately equated in a four-box model.
Their software is additionally supportive towards managing disruptions collaboratively – a suitable choice for global manufacturers with medium to high complex and outsourced supply chains.” The Numbers That Matter One metric from the Spend Matters analysis stands out above all others: our 9.0
In some sort or another, Punxsutawney Phil has been predicting the weather since 1890, and let’s just say that his record is iffy at best. ” I assume that Phil tries to ignore the pomp and circumstance of how his shadow would determine the upcoming weather pattern, and just wants more sleep (like the rest of us on a cold winter’s day).
It is just mush. I just don’t think the comparison of very different industries in a spreadsheet based on growth, inventory values, and Return on Assets (ROA) is meaningful. As a result, the metrics have to be viewed together as a pattern over time. Mush is a thick cornmeal pudding boiled in water or milk.
Keeping track of all your moving parts in manufacturing is a tall order. Spreadsheets just don’t cut it anymore. That’s where manufacturing inventory management software comes in. It’s not just a nice-to-have; it’s the key to staying competitive.
“Lora in your own way, you are helping. You tell it straight. You are pissy and opinionated in this world of supply chain blandness. I find it refreshing.” ” Quote from a reporter this morning. The term supply chain excellence is easier to say than define. It permeates corporate strategy, but it lacks definition. I could taste it.
Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. I can’t tell you how many times I’ve heard that phrase from different people in different contexts. This is just plain wrong on multiple levels. by John Westerveld. Sometimes it’s true.
For the first time in more than a decade, more CPOs are prioritizing savings. For example, consider the challenges in the automotive industry that stem from the supply chain issue in chip manufacturing. Tracking the Metrics that Matter. Inflation Metrics. However, the path to success is never easy.
As discussions full of oxymorons, acronyms, and juxtapositions fill the air, I think that it is time to step back, and rethink planning based on the opportunities that new forms of analytics and data give us. ” Today only 7% of manufacturers are innovators. The difference between an oxymoron and a juxtaposition lies in usage.
I find that many times companies have the wrong name, or a misnomer, for what they are trying to achieve. It was my first time working with this group. As I sat in the back of the room, shifting in my chair, waiting for my time to speak, I watched speaker after speaker endorse the concept of one team. I am passionate about it.
However, not just service levels and costs can be traded off. A planner could ask the SCP engine to achieve 95% service, with CO2 emissions under a million metric tons at a given factory in the coming month. These forecasts occur in three different time horizons: Long-term planning. This would be a three-way tradeoff.
I remember the first time that I met the founders, Don and Toby. ” And from time to time, when we were behind deadline, and teasing each other about the looming weekly post, we would throw our llamas from cubicle to cubicle. It could no longer be just about inventory levels. The conference was low-key. Reflections.
In the annual report where they report on their key performance indicators (KPIs), they don’t just report on core financial metrics and the NPS, they also have people metrics. Ferguson PLC, value added distributor of plumbing and heating products, came out with their third quarter results on June 14 th.
However, writing it is a great time to get into industry patterns and think. However, writing it is a great time to get into industry patterns and think. With surgery, I just never got to the report finished. The report was scheduled to publish in the summer of 2023, but life got in the way. The full report publishes this week.
The recent outbreak of coronavirus has shaken communities and put companies that rely on manufacturing from facilities in Wuhan, China at risk. That’s not enough time for the slow, sequential planning processes that many organizations use today. But some events are more disruptive than others. A bad prognosis for sequential planning.
A pound of apples costs about the same as a pound of steel, yet steel is a complex product produced using high-tech metallurgical and manufacturing processes. We don’t spend just to innovate,” Mr. Lassen said, “we need to create business value.”. Tata Steel Europe Plant in Wales. The steel industry is not easy. What does that mean?
This blog explains The Key MRP Metrics in Supply Chain whcih every supply chain professional in Manufacturing or Distribution Businesses. This is a fundamental principle of supply chain management, it constitutes a juggling act that is at the heart of any well-orchestrated manufacturing process.
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