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The attendees were sitting on the edge of their seats to hear about the next release of Llamasoft software. The market for networkdesigntools was growing at a moderate rate, and most of the market had invested in technologies from either i2 Technologies (then termed i2 Strategist) or Logictools.
Despite two decades of advancement in supply chain technologies, companies are struggling to gain balance at the intersection of operating margin, inventory turns and case fulfillment. My goal is to understand the impact of technologies and processes. Today, we have a number of burning platforms. It is easier said than done.
At some point, usually when costs are out of control or service levels are heading south, companies finally make the decision to invest in a transportation management system (TMS) or outsource all or part of their transportation operations to a third party. Do you have the resources internally to effectively use and manage a TMS?
What follows are some key things a newcomer to the supply chain profession, or an interested reader of news headlines, needs to know about SCP technologies, processes, and roles. A networkdesign model figures out where factories and warehouses should be located. The key solution for this is networkdesign.
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. Many try to start with technology. Responsive. Let me give you example.
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.) Understanding this relationship requires modeling. (A A Case Study.
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.
Forget static networkdesigns 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.
As an analyst in the battered supply chain software market for a decade, it is fun to watch you grow. Clients buy your software because you make it real. I always start the discussion of all software acquisitions with the same statement: the acquisition of software is seldom a good deal for the buyer/user of software.
For organizations layered in functional metrics and driving a cost agenda, this is a tough nut to crack. During the pandemic, companies struggled with planning systems turning off the optimizers, and using the technology as a system of record. Show the technology vendors touting digital and AI transformation the door.
This document serves as a roadmap for professionals involved in supply chain networkdesign and optimization, providing valuable insights and practical guidance at every stage of the process. This initial step enables tailoring the supply chain networkdesign to meet specific needs effectively.
This week, I will speak at Llamasoft’s conference on improving supply chain networkdesign. 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.
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 networkdesign optimization and simulation modeling to help people model trade-offs. Make it real.
And for supply chain improvement specifically, using the right technology in your business can give you the competitive advantage over other companies. In my experience the tipping point is around 6 vehicles – thats when the complexity of manually managing your fleet starts to outweigh the cost of proper routing and scheduling software.
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 networkdesign solutions. With the use of advanced technologies, planning decisions can also be automated.
I am speaking this morning at the Terra Technology conference and doing a book signing of my new book, Supply Chain Metrics That Matter. Demand sensing pilots are very early in evolution, but the results are not equal to Terra Technology’s demand sensing results. ” LLamasoft: Recycled Software Assets Offering Hope?
Each requires design and fine tuning. However, only 9% of companies actively design their supply chains. The strategy department in most shipper organizations sits in finance while the networkdesigntechnology expertise is usually a much lower level in operations. Design Your Value Chains.
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!
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.
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 networkdesign) helped. It will publish next week. I hope this helps.
Warehouse and supply chain planners rely on a surprising number of technologies to achieve this. Networkdesign is used for this. The Limits of Artificial Intelligence Just determining the right location for inventory in a warehouse requires multiple systems and technologies. A WMS tells workers what to do.
Fred owned logistics and customer service for the organization. The metrics were not aligned. Map the different metrics and incentives in the organization to behavior. Use networkdesign and planning tools to show flow.) I did not know Dan as an individual: we had a boss/subordinate relationship.
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. There are many forms of decision support—price optimization, revenue management, transportation planning, spend management, networkdesign.
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.” What is the issue? Excel usage increased during the pandemic.
Active Work on Design and Modify. The use of networkdesigntechnologies, in combination with inventory optimization technologies, drives a higher level of satisfaction for the Center of Excellence. Networkdesigntechnologies are growing up and becoming part of enterprise architectures.
Active Work on Design and Modify. The use of networkdesigntechnologies, in combination with inventory optimization technologies, drives a higher level of satisfaction for the Center of Excellence. Networkdesigntechnologies are growing up and becoming part of enterprise architectures.
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 networkdesign optimization alternatives. Recognize that these are tactical processes.
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. Achieving supply chain agility requires a much deeper design.
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.
There is also the issue of data overload—IoT devices generate tremendous amounts of information, and managing, storing, and analyzing this data requires significant investments in both technology and technical expertise. Regularly updating and maintenance of IoT systems will further enhance their efficiency and reliability.
The digital twin allows for internal operations as well as customers to view the various processes, along with detailed metrices throughout the facility. Where many companies have exercised cost cutting measures, Schenker has conversely stepped-up investments in our people. MORE FROM THIS EDITION. Is your freight invoice accurate?
How can they do that in an informed way, accounting for complex cost and service trade-offs? AIMMS NetworkDesign provides functionality that helps supply chain teams model carbon emissions and other non-financial metrics like water consumption and carbon equivalents. What are the key KPIs for SC NetworkDesign? •
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.
Supply chain design looks very different by company. Today, three out of four companies greater than 10B$ have a networkdesign group that averages seven people. So, how do companies get good at supply chain design? The work can use multiple technologies and combine cognitive learning, simulation and optimization.
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.
Business leaders came and went as an analyst, technology shifted, and markets ebbed and flowed. We started charting public performance on Orbit charts studying the relationships between metrics and having conversations with manufacturing and retail teams about their results. Investment in Descriptive Analytics. Analytics Deployment.
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 networkdesign. Eliminate rebates, direct payments and services. Question conventional models.
Each requires design and fine tuning. However, only 9% of companies actively design their supply chains. The strategy department in most shipper organizations sits in finance while the networkdesigntechnology expertise is usually a much lower level in operations. Design Your Value Chains.
Each requires design and fine tuning. However, only 9% of companies actively design their supply chains. The strategy department in most shipper organizations sits in finance while the networkdesigntechnology expertise is usually a much lower level in operations. Design Your Value Chains.
Slowly, as shown in the image of the consumer value network, supply chain leaders expand the scope of their supply chain operations from the customer’s customer to the supplier’s supplier with a clear view on the customer. The metrics reward functional thinking. NetworkDesign Maturity Model.
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. A Supply Chain Leader will make progress on both of these key metrics with a very tight and controlled pattern.
The article is written and the story is spun, but the solution offered is a supply-centric solution based on yesterday’s technology. The original principles of a value network that can sense, shape and translate demand with near-zero latency are being lost in the fog. Their current technologies are inadequate. It is still early.
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.) Any takers here?
Executive, after executive, lament, “They have purchased many technologies and sponsored many projects to reduce inventories, but they are not seeing results.” ” I have been studying the evolution of inventory technologies as an industry analyst since 2002. It is truly a case of process, people and technology.
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