Comments on: What are your top three supply chain planning mantras? http://blog.kinaxis.com/2010/01/what-are-your-top-three-supply-chain-planning-mantras/ Tue, 07 Feb 2012 20:48:00 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Ron Freiberg http://blog.kinaxis.com/2010/01/what-are-your-top-three-supply-chain-planning-mantras/comment-page-1/#comment-5751 Ron Freiberg Fri, 22 Jan 2010 16:39:14 +0000 http://blog.kinaxis.com/?p=2681#comment-5751 It is interesting that this topic should come up for discussion at this time, I just developed our department's strategic plan that ties to the corporate objectives; I used my basic mantra as the back bone for our supply system going forward. I did use basic cornerstones if you will with a number of methodologies tied to them as follows, effectively in sequence of implementation. 1. Supply chain partnerships and collaboration: -Use of supply agreements to state expectations and rules of the demand driven supply chain -Use supplier/commodity group consolidation/optimization/rationalization methods -Use partnership and team approach both internally and externally 2. Develop a demand driven system: -Use the several forms of vendor managed inventory where possible -Use Kan Ban type systems where possible -Redefine forecast around the company's seasonality trends as opposed to being stated in Financial time buckets, i.e. weekly/monthly/quarterly/fiscal year -Update or reaffirm the demand forecast frequently with the partners 3. Develop flexible and agile supply systems: -Use buffer inventories as a hedge against the unknown -Develop long lead planning BOMs -Use a shared responsibility concept for inventory with the business partners -Update or reaffirm buffers and Long lead planning BOMs frequently consistent with demand Forecast updates It is interesting that this topic should come up for discussion at this time, I just developed our department’s strategic plan that ties to the corporate objectives; I used my basic mantra as the back bone for our supply system going forward. I did use basic cornerstones if you will with a number of methodologies tied to them as follows, effectively in sequence of implementation.

1. Supply chain partnerships and collaboration:
-Use of supply agreements to state expectations and rules of the demand driven supply chain
-Use supplier/commodity group consolidation/optimization/rationalization methods
-Use partnership and team approach both internally and externally

2. Develop a demand driven system:
-Use the several forms of vendor managed inventory where possible
-Use Kan Ban type systems where possible
-Redefine forecast around the company’s seasonality trends as opposed to being stated in
Financial time buckets, i.e. weekly/monthly/quarterly/fiscal year
-Update or reaffirm the demand forecast frequently with the partners

3. Develop flexible and agile supply systems:
-Use buffer inventories as a hedge against the unknown
-Develop long lead planning BOMs
-Use a shared responsibility concept for inventory with the business partners
-Update or reaffirm buffers and Long lead planning BOMs frequently consistent with
demand Forecast updates

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