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According to research by Ernst & Young LLP, the global consulting firm, as the Covid crisis recedes, supplychainexecutives are losing the strategic gains they made with their C-suite counterparts. While supplychainexecutives largely realize how critical collaboration and effective supplychain technology are.
Closing the gaps happens when there are aligned metrics, clarity of vision and aligned planning processes. There has to be an enlightened leader that understands that the supplychain is a complex system with increasing complexity. The average supplychain leader has five distinct supplychains.
The sudden onset of Covid-19 only reinforced what supplychain professionals had already realized: uncertainty is the only real certainty. In their time lean manufacturing and just-in-time were game-changing concepts. A new hyper-focus to meet customer expectations is creating pressures upstream in the supplychain.
Medical Device Manufacturer. New SupplyChain Leader of a Regional Children’s Hospital. The most common reporting relationship in the supplier organization is to a leader of supply (focus on logistics, distribution, materials sourcing and customer service). The focus has been on sourcing and managed costs.
Resiliency, which is the ability to withstand supplychain shocks and bounce back quickly, has become the most important requirement for supplychains. Balancing supply and demand by orchestrating the flow of materials and information is a key requirement for managing operational risks. are most exposed to risk?
Procurement has never played such an important role in the increasingly globalised economy. Has procurement fundamentally changed itself in the past 10 years? Strategic Procurement can mean totally different things in different industries and sectors. The time when Procurement was almost a synonym to Purchasing has long gone.
The sudden onset of Covid-19 only reinforced what supplychain professionals had already realized: uncertainty is the only real certainty. In their time lean manufacturing and just-in-time were game-changing concepts. A new hyper-focus to meet customer expectations is creating pressures upstream in the supplychain.
The Six “Rights” of SupplyChainExecution. Gary began our discussion by pointing out that the Amazon Effect, which he says had a critical turning point during the 2017 holiday season, has sped up supplychains for retailers and consumer goods manufacturers, causing a greater emphasis on sourcing.
The larger the organization, the more tension with conflicting functional metrics making decisions more difficult. Note in Figure 1 the gaps from recent research between supplychain planning and manufacturing, logistics, and sales. These results herald upcoming issues for future manufacturing reporting earnings calls.
A previous supply planning implementation, of an SCP system from a different supplier, had not gone well. When it comes to supplychain planning, the right technology solution can make a big impact on a business’ agility and resilience. 94% of US and Canadian healthcare systems use Cardinal Health in one capacity or another.
Supplychain management books that are praised by supplychainexecutives, consultants and supplychain management professionals at all levels. Background In dynamic supplychain management environment, people have to make the quick and decisive actions against various issues.
Nvidia, Northrup Grumman, PACCAR Inc, PCA (Packaging Corporation of America), ResMed, Rockwell Automation, Ross Stores, Taiwan Semiconductor Manufacturing (TSMC) Company, Tempur-Pedic, TJX, Toro, Toyota, West Pharma, United Tractors, and Urban Outfitters. The group’s response is, “Are these supplychainmetrics?”
Today I want to talk about the challenges faced by today’s automotive suppliers, and why a network model for their supplychain can help. Today, in order to accomplish these goals, continuous improvement in global supplychainexecution has become a core supply capability required by most automotive OEM’s.
Natural disasters like the Japan earthquake, product shortages due to quality issues, the impact of currency rates on product costs and demand, and disruptions caused by IT service failures or security breaches are just a few examples of the risks supplychainexecutives face every day. The same is true for CEOs.
This blog is based on an article that recently ran in the Journal of SupplyChain Management, Logistics & Procurement, “ Supplychain agility: An imperative in an unpredictable world.”. These companies did not realize that profitable agility relies on a bag of capabilities, not simply “visibility.”
In 2015, I worked with a manufacturer of men’s underwear. (My Their questions were could the supplychain help? The company sold on Amazon, operated its own website, managed outlet stores, and could purchase end-aisle displays in major retail chains. The manufacturer had an infestation problem.
We are trying to understand how supplychain leaders have raised the bar at the intersection of these four sets of metrics on the supplychain effective frontier. Silos in the organization do not know how they align because over 85% of companies are not clear on supplychain strategy.
Cycle stock is the management of stock required to cycle through production runs and procurement buys effectively. There are two buffers in the supplychain: inventory and manufacturing capacity. The reduction of cost and improving asset utilization is usually the charter of the supplychain team.
Transportation planners can dynamically access the best freight rates across both contracted and non-contracted carriers, enabling them to procure additional capacity during peak demand periods. By seeing real-time prices — which reflect current demand-and-supply effects — they can make better informed, more profitable tendering decisions.
Manufacturers are Now Selling Directly to Consumers. Retail was slow to adopt supplychain processes to drive new business models; and as a result, traditional retail redefinition of supplychain processes got caught in the omni-channel hype while Amazon worked its magic to become a market leader. The difference?
For a long time, C-level executives viewed supplychain management, especially the logistics function, as a cost center. As a result, cutting and controlling costs became the top priority for supplychainexecutives. Source: “Tech in Asia” – https://www.techinasia.com.
The affected store then it has to receive a refund on previously purchased goods or replacement goods and products from the existing supplier or supplychain. Ultimately, this represents an added cost to the supplychain for failing to maintain the freshness and quality of the goods.
Connectivity enabled the growth of the global supplychain opening up markets driving opportunity. The traditional manufacturing job defined the middle class. Driving progress in this world of uncertainty and high risk is the job of the global supplychain leader. Governance in SupplyChain Processes.
One of the SupplyChain Management trends apparent at the Gartner SupplyChainExecutive Conference in May was highlighted by several vendor/customer presentations focused on the value of Collaboration and Visibility projects. A high-tech contract manufacturer was growing rapidly through acquisition.
Natural disasters, product shortages due to quality issues, the impact of currency rates on product costs and demand, and disruptions caused by IT service failures or security breaches are just a few examples of the risks supplychainexecutives face every day. CFOs rarely know anything about supplychain management.
Then, we use these criteria to rank the books, - Practicality: we look closely at how each book can provide basic concepts and strategies of the "Integrated Logistics Functions", namely, customer service, purchasing, production planning, warehousing, and transportation in a clear and concise manner. The links below are paid links.
Imagine this scenario; you are a supplychainexecutive for a major U.S.-based based electronics manufacturer. There has been a major earthquake in Chengdu, China… where several of your key items are manufactured. In many cases, supplychain issues aren’t going to be found in the news. This is bad….
The APICS SupplyChain Council set out to answer this question in its latest industry report entitled “SupplyChain Leadership Report: Many Styles Generate Success.” The findings were generated from multiple sources, including surveys of APICS members, articles, and external research.
On the supply side, however, there is less and less room for manufacturers to absorb additional costs as volatile input prices put the squeeze on margins and the marketing investment required to differentiate branded products from private-label competitors continues to rise.
The Cost of SupplyChain Disruptions Recent studies, including one conducted by Accenture , have highlighted the staggering costs associated with supplychain disruptions. Industrial equipment manufacturing emerged as the most impacted sector, with companies missing out on 7.4% revenue growth due to disruptions.
According to sources, Stevedores are demanding advance payment in cash. Lead times are in weeks and months in cases where manufacturing is outsourced to firms on the other side of the earth. Linear supplychains as we know them are turning into supply networks with more players and parties than ever before.
From talks of an autonomous supplychain, a robotic takeover, drone deliveries in 30 minutes or less; the future of supplychain management presents businesses with the opportunity to transform their processes into a competitive advantage. This looks at all the businesses’ current manufacturing and supplychain processes.
“It sort of depends upon what we are purchasing from the supplier as to the approach we should take…” Commodity Strategic The first level, for components or typical commodity type products, we will at least want to perform a supplier evaluation of some sort. with a backup plan as part of contingency planning.
The respondents were all discrete manufacturers and all held VP or C-level titles. The universe of completed surveys totaled 401 and inquired about the highest priorities for manufacturers today. Market Research (TMR) just released the results of a survey conducted in the first two weeks of February, 2017.
This blog was co-written by Chirag Modi , Corporate Vice President, Industry Strategy – SupplyChainExecution and 3PL Global Lead, and Jen McQuiston , Product Marketing Director. The data they provide is invaluable in monitoring and measuring sustainability metrics such as miles traveled, energy used and waste produced.
Yet to holistically tackle ESG performance, procurement teams must evaluate their operations at tier two, three, and beyond, as each level of the supplychain carries different risks. Often, sustainability risks are buried deep within a company’s supplychain. Cotton is a great example. Why Is This Important?
Yet to holistically tackle ESG performance, procurement teams must evaluate their operations at tier two, three, and beyond, as each level of the supplychain carries different risks. Often, sustainability risks are buried deep within a company’s supplychain. Cotton is a great example. Why Is This Important?
Specifically, the other flows in the firm I’m speaking of are cash, people, leads or potential sales, actual sales, capital, new products/revenue sources. The time is now for all Planning and SupplyChainexecutives of the world to arise and stake your rightful places as the logical digital leaders within your corporations!
As we adhered to shelter-in-place orders from the CDC (Centers for Disease Control), each of us were purchasing more products and services online at a faster adoption rate than ever before. Transport costs are soaring to ridiculous levels, especially for those shippers that did not have an organized procurement strategy for freight movement.
Early in the week I sat in on a lecture given by Clay Christenson (from Harvard Business School) to a number of senior supplychainexecutives at a gathering at the new 7 World Trade Center in New York.
Manufacturing companies have the option of selling directly to consumers without the help of any retail middle men. Whether you are new in the retail space or an established player, what you cannot build with a click of a button is a strong brand or an efficient supplychain.
These improvements in inventory efficiencies then translate into improved financial metrics, including 10% improvement in earnings per share; 5% increase in return on assets; and a 2.5% Reducing the Risk of SupplyChain Disruptions. Supplychain visibility means all partners get access to data in real-time.
Changes in demand, late shipments, quality issues, point of sale, weather patterns, production schedules and projected inventory positions are just some of the myriad of things you want to be able to see so you can make better and more informed decisions as a supplychainexecutive. Execution Layer. Why is this?
Aligning SupplyChains with Business Strategy , a new report by Tompkins SupplyChain Consortium based on survey findings from 172 participants, makes a strong case for the importance of connecting supplychain and business strategies. “We About Tompkins SupplyChain Consortium.
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