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There are three reasons why: Vertical excellence—having the best manufacturing, procurement or transportation function—has not worked. Aligned Metrics. What percentage of retail out-of-stocks could be prevented by the manufacturer in these industries? What does an investment in SAP mean for a company? ” Yes, I said.
The first story is about a large regional food manufacturer. The first in the 1990s was Manugistics, the second in the early 2000s was SAP APO, and now their solution is SAS. The second story is about a regional beverage manufacturer. I have changed the names to provide anonymity. Let’s Be Customer Centric. The answer?
Driving decarbonization with technology In 2023, the SAP CPO Think Tank community has been closely examining how companies can accelerate supply chain decarbonization. The 2022 Inflation Reduction Act (IRA) is a package of measures, including tax incentives for clean energy and manufacturing.
The goal of this blog is to help business users maximize their current SAP Investments in a time of change. High-tech manufacturers in the Silicon Valley of the United States are some of the best at supply chain planning. For SAP users, it is the best and a much needed system of record. Reflections. Here is my advice.
The goal of this blog is to help business users maximize their current SAP Investments in a time of change. High-tech manufacturers in the Silicon Valley of the United States are some of the best at supply chain planning. For SAP users, it is the best and a much needed system of record. Reflections. Here is my advice.
Avoid implementing Aera on top of an existing SAP APO implementation.) Advanced planning evolved with a focus on modeling manufacturing constraints. Watermelon Metrics Don’t Drive The Right Results. I love the metaphor of watermelon metrics. What are functional metrics? Start small and test and learn.
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. Reward teams for cross-functional metrics. What did we find?
Bill was a strong advocate of SAP ERP. 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. His goal was to separate manufacturing and distribution inventories to improve his bonus incentives.
It was funded by 50 large consumer products manufacturing companies (CPG). In the dawn of e-commerce, conservative manufacturers, anteed up $240 million in four months. While there is work within SAP to rethink SNC and use the assets purchased with Ariba to build multi-tier capabilities, the progress is not encouraging.
Here “near real-time” is defined as a refresh of key metrics every five minutes. Last September, I talked to a supply chain director at a manufacturing company that had implemented Rebus. They use SAP as their ERP. Generating the analytics in SAP also would not work.
Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Some companies prevent access to data to prevent trade secrets (or in the case of US military manufacturers ITAR regulations prevent foreign nationals from accessing manufacturing data).
The manufacturing-centric company is used to strangling suppliers and demanding terms. The low Return on Invested Capital (ROIC) and the growth below the industry average comes from the lack of network design and organizational alignment between new product development, manufacturing, and procurement. So, you might ask, why?
The data is all anonymous, but retailers can look at metrics such as time to fulfill, pack time, conversions, and ship versus pick-up, to name a few, across hundreds of Active Omni customers. SAPSAP showed off Joule, its generative AI assistant. There were two use cases that I found interesting.
The second generation of solutions were built and marketed by Enterprise Resource Planning technology companies like SAP and Oracle. Tomorrow, I get to deliver this message to a large manufacturing client. In addition, I am now done with the page proofs for my new book, Metrics that Matter. The book is a story.
Infor’s CEO, Kevin Samuelson Infor’s strategy for differentiating their business from competitors like SAP and Oracle rests on a truly differentiated approach to ensuring that their customers get ongoing value from the business applications they purchase. Infor, with anticipated revenues of $3.4
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). At Rockwell this includes all processes end-to-end except for manufacturing.
However, in the polling data in the APICS webinar, we found that over 70% of the respondents had deployed solutions from the ERP-expansionists (either SAP or Oracle). Today, SAP and Oracle have market share dominance; however, the data is clear. The research is a study of large manufacturers. The answer is interesting.
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 supply chain planning and manufacturing, logistics, and sales. These results herald upcoming issues for future manufacturing reporting earnings calls.
For the past five years, the team at Supply Chain Insights identified Supply Chains to Admire Award Winners by analyzing performance by peer group on the key metrics of growth, operating margin, inventory turns and Return on Invested Capital (ROIC). At Rockwell this includes all processes end-to-end except for manufacturing.
What a Supply Chain Digital Transformation Means Unsurprisingly, a company as large as Mars has a highly complex supply chain involving global sourcing, manufacturing, and distribution. These codes were put into SAP after an order cut had occurred. The company chose 4Flow to do transportation planning and execution in Europe.
The number one question that I am asked today by manufacturers across all industries is “How can I improve customer service?” A common issue in financially-driven companies is the heavy utilization of manufacturing assets past reasonable limits throwing the supply chain out of balance. Background. 4 Maximize Buffers.
SAP Announces Second Quarter and First Half Results 2013. Here are some additional details from the press release: Data Services data sets will include mode-specific transportation costs and transit times, facilities cost estimates, demographics, risk metrics, duties and taxes, sustainability metrics and others.
While SAP has purchased SmartOps and is marketing a demand sensing/demand translation offering, I have not been able to validate the solution through references. I also like the work that is happening at the Demand-driven Institute on the redesign of manufacturing to be more demand driven. It is clear that math matters.
Then it is off to Dallas to speak on Supply Chain Metrics That Matter at the Dallas CSCMP roundtable and complete some more client work. In short, this major manufacturer and a well-respected supply chain leader, lamented the lack of good decision support tools and the singular focus of his IT team to focus on ERP implementation.
This includes SCOR, APICs, Gartner Top 25 Supply Chains, Gartner Hierachy of Metrics, etc. Manufacturers and retailers are bundling goods and services to drive solutions. The differences between retailers and manufacturers will continue to blur. New models evolve based on the Art of the Possible. The focus will be on outcomes.
90% of public manufacturing companies are treading wate r. Improvement on the key metrics of growth, inventory turns, operating margin and Return on Invested Capital (ROIC) is elusive. Contractually, analyst work at existing companies must be reviewed by large software companies (primarily SAP and Oracle). Then it was sexy.
At the time, DuPont, now acquired by DOW, boasted externally on internal adherence to SAP standardization for decision support. Notice how the water turns from blue to brown in Figure 3 with the lack of demand translation capabilities within the enterprise for manufacturing and logistics. Let me explain. Mistake #5. Measurement.
While ToolsGroup and SAP (with the acquisition of SmartOps) are the nearest competitors, Terra prided itself on delivering better decisions through better math. The Terra solution complimented the functionality of the traditional APS vendors, i.e. Adexa, JDA, Logility, Kinaxis, SAP APO and Steelwedge. The Path Forward.
Shipping approximately 400 million selling units consisting of 700 million manufactured units per year, Carter’s employs about 4,000 employees at its peak. Over the period of 2009-2015, only 88% of companies made improvement on the Supply Chain Metrics That Matter. (As Performance on the Supply Chain Metrics That Matter.
” Smiling and nodding in agreement, he said, “ It is frustrating,” He continued, “Why is SAP not doing more with Ariba? The event will be invitation only for fifteen manufacturers and fifteen technologists. Why is there no solution for inter-operability between networks?” I accepted his challenge.
The traditional manufacturing job defined the middle class. Each time, I turn on the channel, manufacturing jobs frame the global debate. Ironically, as global manufacturing jobs decrease, there is a need for talent for the global supply chain. However, globalization comes with responsibility. The reason?
I think that IBM, HP, Microsoft, Oracle, SAP and Teradata are victims today in the information technology sector. He discussed the adoption of the steam engine and the electric motor in the manufacturing sector. Today, we take these technologies for granted, but the electric motor was the genesis of the horizontal manufacturing plant.
Lockdown of cities and manufacturing plants have significantly impacted many industries’ supply chains. Being customer-centric enables companies to improve sustainability and uplift manufacturing through higher quality products and strengthen logistics, which results in higher levels of on-time deliveries. Oxford Economics & Sap.
Metrics Definition. The organization needs to be clear on the Metrics That Matter and the alignment of vertical silos’ metrics to the balanced portfolio. For example, one business unit can run SAP, one Oracle, one Logility, and one OM Partners; and it will be OK. Reporting Structure. Form and Function of Inventory.
Despite numerous acquisitions and product development efforts, SAP and Oracle are much larger industry giants. In 2014, SAP posted revenues of 19.5B$ and Oracle with 38.3B$. SAP and several other companies passed on the opportunity. There is seldom one technology used within a manufacturing company to connect B2b value networks.)
The majority of manufacturing and retail companies want better performing supply chains. My view is that both SAP and the large consulting organizations perpetuate a very functional view of supply chain management which is detrimental to building effective value networks. A Critical Review of the Contract Manufacturing Model.
When this happens, there is greater balance between metric trade-offs and resiliency in year-over-year improvements in corporate performance. This includes consistency in manufacturing operations, order-to-cash processes, and customer service. SAP’s redefinition of Ariba). Process needs to follow strategy.
” At the other end of the continuum is the argument that “ Forecast error is the most important metric to improve.” I also worked in manufacturing during the period of 1978-1992 trying to plan demand. Test new solutions against the traditional demand sensing providers of E2open (Terra Technology), SAP and ToolsGroup.
Metrics Definition. The organization needs to be clear on the Metrics That Matter and the alignment of vertical silos’ metrics to the balanced portfolio. For example, one business unit can run SAP, one Oracle, one Logility, one Kinaxis, and one OM Partners; and it will be OK. Reporting Structure. Technologies.
We are systemically evaluating each industry in the Supply Chain Insights Metrics That Matter series of reports. And, when they do, the focus on network design is still on bricks and mortar–where to put manufacturing and distribution locations–not on form and function of inventory, and the design of inventory flows.
IBM is good at manufacturing terms that we both hate and love. In a similar vein, SAP Hana has a huge marketing machine behind its launch, but I question if the price is worth the value. Lora has written the books Supply Chain Metrics That Matter and Bricks Matter , and is currently working on her third book, Leadership Matters.
Despite the fact that the cost of memory decreased a million-fold in 55 years, the majority of supply chain solutions use relational databases from vendors like Oracle, SAP or Teradata. In my simple world, I see SAP HANA as the answer for faster and more robust Enterprise Resource Planning (ERP). A Look at History. Streaming Data.
In the words of a participant on the call last week, “ We have implemented SAP APO, but are stuck in intermediate Excel. This data sharing typically requires a one-to-many or a many-to-many data model found in the emerging value network technologies like GT Nexus, Elemica, E2open,Exostar, GHX, SAP/Ariba, and SupplyOn.
It matters not what your metric is, you get the same results: too much of our trade spend goes down the drain, doesn’t it? Further, integration of transportation and logistics data along with manufacturing, S&OP and trade promotion planning will increase the efficiency and visibility of collaborative planning and forecasting.
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