Archive for the ‘Inventory management’ Category

The Challenges of Master Scheduling: Hug Your Master Scheduler Part One

Published February 24th, 2015 by John Westerveld 0 Comments

Hug Your Master SchedulerI’ve had the opportunity over the past few weeks to investigate how many companies perform their Master Planning practices, and in the process do a pile of thinking about the Master Scheduling role.

My conclusion is that if your company is running smoothly, you need to stop what you are doing right now and hug your Master Scheduler. If your company isn’t successfully executing your plan, you should look at the tools you’ve given your Master Scheduler because with the traditional tools, asking the Master Scheduler to do an effective job is like asking da Vinci to paint the Mona Lisa with a can of spray paint. It isn’t going to be pretty.

If you think about it, the Master Scheduler is the keystone of your business. They have the unenviable job of being the first point of execution in your planning process. The Master Scheduler sets the build schedule for your plant, or perhaps even for your global supply chain. To do this, they need to balance the realities of the supply chain against the randomness of demand (after all, forecasts are…well forecasts. And you know the rule about forecasts – they are always wrong.)

Master Schedulers need to do this while respecting capacity limitations, working the overloads and back-filling the underloads. If that isn’t challenging enough, these constrained resources could be multiple levels away from the point of demand with multiple lead time offsets to consider. Starting to sweat yet? Now think about this; at the same time, the company has firm inventory targets that need to be respected. If your wonderfully leveled master schedule causes you to exceed your inventory targets, it’s back to the drawing board. If you are able to make a schedule that meets all requirements, you no sooner have that schedule ready to go when someone is trying to make it invalid. Scrap, late supplies, demand changes and capacity issues all can force the Master Scheduler to review and possibly adjust their plan.

On top of this, the Master Scheduler has multiple other responsibilities. They can be pulled into new order feasibility discussions with Order Fulfillment, they often are responsible for maintaining planning BOMs and are responsible for setting planning parameters like lead times, demand horizons and lot sizes.

So, I think we can all agree that the Master Scheduler has a challenging job. But, you’ve given the Master Scheduler the best tools, right? Stay tuned for part two to see how you can help your Master Scheduler with more than just a hug.

Posted in General News, Inventory management, Supply chain management


Best of the Best Supply Chain Blog Posts of 2014

Published December 22nd, 2014 by Melissa Clow 0 Comments

best of the best supply chain blog-posts

As you take time over the holidays to sit back and reflect, here are the top ten excerpts from the best of the best posts on the Kinaxis supply chain blog. They touch on hot topics and industry trends discussed over the past year, so grab a coffee (or a spiked eggnog) and enjoy! We look forward to continuing the conversation in the New Year.

#1 “And much as we have had to rethink the first applications that were simply a digitization of a paper-based paradigm, we need to rethink how we structure our organizations and get work done to get maximum utility out of the digital world.”
FROM SMAC in the Middle of Supply Chain Change

#2 “Visibility is losing its clarity.”
FROM Visibility is Losing Its Clarity

#3 “The ‘ah-ha’ moments are the catalyst to innovation.”
FROM “Storage Wars” Rescues Supply Chain Ignominy

#4 “Many companies have several instances of ERP, each deployed differently. Despite many moving to a single instance of ERP there are still many ‘shadow IT’ required to do what the core ERP solution cannot. And then there is the planning layer, which is even less harmonized or standardized. Most business people consider this an IT problem. Guess what? It isn’t going away until the business makes solving the data issue their issue.”
FROM Gartner Supply Chain Leaders Conference – What Will Be Hot?

#5 “Tell me if you’ve heard this one before. Your company has implemented an S&OP process. At first it showed some promise, but now it has turned into a blamefest, attended – if at all – by lower level representatives that aren’t empowered to make decisions.”
FROM Poorly Executed or Non-Existent S&OP Is Costing Your Supply Chain Money

#6 “…a supply chain planning system of record should be focused on how it can drive tangible business outcomes not just on how to run the supply chain planning function.”
FROM Gartner’s Magic Quadrant for Supply Chain Planning System of Record

#7 “…Yet my contemporaries are the ones making large decisions about organizational structures, processes, and solutions that are rooted in mental models developed and perfected in the 1970s and 1980s. And far too many of the analysts and management consultants continue to position these mental models as best practice. They are not; they are yesterday’s practice.”
FROM Do Supply Chain Planning Systems Generate Any Value?

#8 “Collaboration is not about ’being social’, it’s about making information available, connecting people and improving business processes.”
FROM Purposeful Collaboration: What It Could Mean for Your S&OP Process

#9 “… even the smartest people can juggle no more than nine variables when making decisions. Since there are a lot more than nine variables that need to be considered when making a cross-functional decision in supply chain, the solution was to eliminate the people and let a machine make an ‘optimal’ decision. It is time that we corrected this imbalance.”
FROM The Eternal Dilemma of Decision Making: Human Judgment or Machine Optimization

#10  “Supply chain visibility alone won’t yield effective supply chain orchestration; it is a prerequisite capability, among others.”
FROM Overcoming the Challenges to Achieving End-to-End Supply Chain Visibility

 

Posted in Control tower, General News, Inventory management, Miscellanea, Supply chain comedy, Supply chain management


The Supply Chain “Change” Dilemma!

Published December 15th, 2014 by Prasad Satyavolu 0 Comments

Trevor Miles and I have been having a healthy discussion on the Internet of Things and how these technology changes are shaping the way we work.

This is part 4 in our Internet of Things Series: The Supply Chain “Change” dilemma!

A few weeks ago, Charles Wehlage wrote a blog post on his take on The Innovators Dilemma. I thought his analogies with supply chain strategy and execution were spot on. In this piece, Clayton Christensen specifically focused on why organizations fail. And not just any organization, but the great ones! The key learning is that the individuals who as a team have just witnessed a big win as a result of a hard worked strategy are highly likely to miss the budding wave of disruptive forces and be ready for the next change.

My own experiences witsupply change dilemna Svyantek DeShon System interface and hierarchy of effortsh different large scale transformations certainly point to this valid the hypothesis. An organization’s capability to sustain its innovative streak is largely dependent on the organizational “software” a.k.a. human resource + DNA. Therefore, the dilemma is how to synchronize the “social dynamics” within an organization and lead continuous change as digital technologies evolve and their adoption is a necessity.

The graphic from Svyantek and DeShon’s thoughts on “System interface and hierarchy of efforts required for change in an organization” illustrates the complexity of change. Organizational software comes before process and technology.

 

supply change dilemna organizations as machine or living system

I equate corporates especially the supply chain organizations with living organisms. They evolve as new scenarios emerge, oil prices fluctuate, new suppliers are added, customers are acquired, new markets penetrated and more data and information becomes available. It is wrong to assume that the collective intelligence of a thinking group can be subsumed in the so-perceived “automated Internet of Things (IoT)” world. Also, pushing the organizational supply chain change issues to a set of mere “team building” workshops will not suffice either.

Information flow within an organization plays a critical role in creating a culture of transparency, commitment to shared goals and observable leadership behaviors. The microcosm of the organization is thus formed within each cell of the organization. The information flow through these cells or nodes spread out within and outside the organization’s supply network shall determine the sustainability of change. Can we leverage the IoT paradigm to create a different organizational culture?

For most global organizations, the supply chain as a system can perhaps be best characterized as geographically spread but comprising of interdependent elements guided and orchestrated by thousands of brains. Arguably, these supply chains are highly complex and difficult to change.

As technologies provide new opportunities for disruptive innovation, building a “learning organization”- along the lines of the model proposed by Peter Senge- could perhaps help in not getting caught in its own success. According to Senge:

‘learning organizations’ are those organizations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning to see the whole together.”

He argues that only those organizations that are able to adapt quickly and effectively will be able to excel in their field or market.

So, when Trevor and I started discussing the impact of Internet of Things on the Supply Chain; it soon became clear that we are looking at a massive opportunity for transformation. The path to realization will require balancing the communication, computing and control with human intervention on one hand and building a continuously learning organization on the other.

What are your thoughts on this matter? Comment and let us know.

Posted in Demand management, General News, Inventory management, Supply chain collaboration, Supply chain management


Kinexions: Is “User Conference” the Right Description?

Published November 28th, 2014 by Bill DuBois 0 Comments

Being a presales consultant (…by day, Late Late Supply Chain Show host by night) during the last quarter of the year, there’s little, if any, time to reflect back on what was the most successful user conference in Kinaxis history. To be honest, my reflections didn’t start until I read Josh Greenbaum’s post, “Women of the Supply Chain: Responsibility, Collaboration and Bathroom Lines”.

Kinexions is supply chain user conference the right descriptionMy first thought was “hey, there’ll be no collaboration in the bathroom” but then I realized he was referring to the gender ratio at the conference. Josh used the longer lines to the ladies restroom as a way to highlight the higher ratio of women at Kinexions.  I didn’t want to be the one to tell Josh that ladies go to the bathroom in pairs so that line would be double by default. Even so, Josh noted that ratio came in somewhat higher than the tech average at 23% but judging from this picture I would have guessed it was 50/50.

The heart of Josh’s post called out the reasons way women make great supply chain leaders. Josh quoted Trevor Miles as observing “women appear to be better at cooperation and collaboration and to be more open to alternative points of view, all skills that are valued in the supply chain world.”  Josh’s article got me thinking about the other groups that were there and made me question if the description “user conference” is the best way to describe Kinexions.

Doug Colbeth Kinexions supply chain user conferenceAs Kinaxis CEO Doug Colbeth stated in his opening remarks, it all starts with the customers and nothing is possible in our world without our customers. We logically think customer equals user which equals person hitting the keyboard and managing their supply chains with RapidResponse. However, there were people from the customer base that were non-users. For example, executives, who reap the benefits of a more profitable supply chain, or members from the IT community who can be more responsive to user requests but are not necessarily users themselves. The term user just seemed to leave a few people out. Doug also put to bed many misconceptions about Kinexions. For anyone who has googled the term Kinexions, it’s not a spa or an online dating site for supply chain professionals!? Thanks Doug!

Kinexions software companyThe second group was a unique one: prospects. Kinaxis is the only software company I know of that would let potential customers walk the halls freely and mingle with current customers. You couldn’t tell the difference between existing and potential customers as they had free access to all sessions. I don’t think Josh could have pointed out the prospects in the bathroom lines. Certainly there were break-out sessions designed for the more experienced user but we found those prospects looking for as much detail as they could get in these sessions. Do we now call it a “User and Wanna Be User Conference”?

Kinexions supply chain user conference analystsThe third group to note was partners. There has never been a higher level of participation from Kinaxis partners at Kinexions. We saw them on stage in the main session, hosting their own break-out sessions and in booths set up in the halls which allowed anyone to go a bit deeper on their offerings. This group has a mountain of user, deployment and supply chain strategy experience. Again, these groups are delivering value to the user community but are not users. The term user just got diluted even more. Partners are a vital member of the Kinaxis community so perhaps we should rename Kinexions to the “User and Partner Conference.”

Let’s move onto the fourth group: analysts. I’ll group both the supply chain and financial analysts together for this conversation. Obviously not users, this group is there to dig into the real user story. Sometimes it’s like playing a round of golf with a golf instructor. They’ve seen it all before so the only thing you can do is relax and swing like nobody’s watching. It’s the only way to get the most from this group in terms of feedback, insights and suggestions for improvement. We’re now up to the “User/Partner and Analyst Conference.”

Kinexions supply chain user conference marketingThe final group of “non-users” is the Kinaxis employees. All levels of sales, marketing, development and services were represented at Kinexions. Here’s a little known secret, for the staff of Kinaxis this is likely the most valuable event of the year. There is nothing like hearing firsthand how customers are maximizing the benefits of their RapidResponse deployments and validating those success stories with partners and analysts. I don’t think we can go with the “User, Partner, Analyst and Employee Conference.” However the theme of Kinexions for the last several years has been “Learn, Laugh, Share and Connect.” Perhaps the connotation of the term “user conference” should change to reflect the experience and not a single group of attendees. If you have ever logged onto the Kinaxis Community you’ll notice the “Learn, Laugh, Share and Connect” banner. So, my suggestion is that next year we refer to Kinexions as the Kinaxis Community Conference. Regardless of the tag line, everyone at Kinaxis is looking forward to Kinexions 2015. Hope to see you there!

 

Posted in General News, Inventory management, Sales and operations planning (S&OP), Supply Chain Events, Supply chain management


Live Webcast: Continuous S&OP for Life Sciences – Breaking the Mold

Published November 17th, 2014 by Melissa Clow 0 Comments

Live Webcast: Continuous S&OP for Life Sciences - Breaking the Mold

Just a quick post to let you know of our upcoming live webcast, “Continuous S&OP for Life Sciences – Breaking the Mold“, which we will host this Wednesday, November 19th at 11am EST.

Trevor Miles, VP of Thought Leadership, Kinaxis, will present on the following topic.

Webcast Abstract

Trevor MilesBusiness realities have changed so tremendously in the last thirty years that the traditional ‘plan then execute’ S&OP model has become highly ineffective. It is unable to facilitate decision making amid acutely complex supply chain networks, or within the time horizons required. This is particularly true for Life Sciences companies faced with varying regulatory requirements and aging product portfolios.

In response, there is an emerging recognition that operational information must be accessed and evaluated on a continuous basis, whereby decisions that may have once only been considered as part of a scheduled S&OP process can be made as needed throughout the cycle. In this capacity, process execution evolves into operational orchestration.

In this webcast, learn about the unique S&OP challenges for Life Sciences companies, the importance of changing S&OP mindsets, and how to break the S&OP mold from both a process and technology perspective.

Register now!

 

Posted in Demand management, General News, Inventory management, Milesahead, Supply Chain Events


Supply Chain Professionals Speak on Delivering Better Business Outcomes with Kinaxis

Published November 13th, 2014 by Melissa Clow 1 Comment

I wanted to share this video compilation of several supply chain professionals that we have interviewed over the years. In the following clip these supply chain practitioners share their opinions on:

  • What is the primary change we are seeing in today’s supply chain?
  • What are key supply chain challenges organizations are faced with today?
  • How does Kinaxis compliment and extend ERP investments?
  • How is Kinaxis helping improve supply chain processes and deliver better business outcomes?
  • How is Kinaxis unique in helping solve complex supply chain challenges?

Hear customers from Qualcomm, TriQuint, Flextronics and Jabil speak on how RapidResponse has transformed their supply chain.

Posted in Best practices, Control tower, Demand management, General News, Inventory management, Miscellanea, Sales and operations planning (S&OP), Supply chain collaboration, Supply chain management


SMAC in the Middle of Supply Chain Change – Part 3 of Kinaxis & Cognizant Series

Published October 27th, 2014 by Trevor Miles @milesahead 0 Comments

digital natives versus digital immigrantsMy friends at Cognizant and I have been having a healthy discussion on the Internet of Things and how these technology changes are shaping the way we work.

This is part 3 in our series.

Some colleagues and friends think I am nuts to put so much emphasis on the Digital Natives, and perhaps I am. Being a Digital Immigrant myself, I am only too aware of the command and control structures with which I grew up and which have been the foundation of all organizations for which I have worked. I’m not so naïve as to think that this change will happen quickly.

Throughout history major changes in technology have driven changes in social and business structures, the classic being the Pony Express and the steam train. But more fundamental change came from the printing press. This is a closer equivalent to the impact digitization will have on business structures, including a major shift in business models and therefore winners and losers.

We used to go to an office (many still do) because this was the easiest way to organize a workforce and structure work. Similarly with factories. People have to go to where the machines are. But in a digital world the only reason to have an office is for the management, which are almost always Digital Immigrants, to enforce a structure and linear decision making processes, the very things that Digital Natives find most constrictive.

I’d also like to point out that these are the very things that cause siloed organizations and long decision cycles in our supply chains. The hand-offs and approvals which are the basis for our existing organizational structure date from the days of runners and carrier pigeons.  Jonathan Lofton raises many of these points, form a different perspective, in his blog “Unleash Pixar-like Creativity in Your Supply Chain Management Organization”. The braintrust Jonathan writes about has no authority, is collaborative, and is consensual. This is how Digital Natives like to work and what Digital Immigrants find threatening.

Technology is simply an enabler. It is how we use it that brings value. And much as we have had to rethink the first applications that were simply a digitization of a paper based paradigm, we need to rethink how we structure our organizations and get work done to get maximum utility out of the digital world. And the Digital natives are experimenting with these as we speak. As we have in the past, let us, the Digital Immigrants, extract the value from their experimentation rather than resist the inevitable change. I find these tremendously exciting times.

For additional reading on the topic of Digital Natives and Digital Immigrants, check out my recent blog on “Do Supply Chain Planning systems generate any value?” as well as the following presentation by Marc Prensky from the Handheld Learning conference.

 

 

Posted in Inventory management, Milesahead, Sales and operations planning (S&OP), Supply chain collaboration, Supply chain management


On-demand Recording of Purposeful Collaboration: What It Could Mean for Your S&OP Process

Published October 21st, 2014 by Melissa Clow 1 Comment

Purposeful Collaboration What It Could Mean for Your S&OP Process

Collaboration is not about “being social”, it’s about making information available, connecting people and improving business processes.

Last week Alan Lepofsky, VP and Principal Analyst, Constellation Research and Trevor Miles, VP Thought Leadership, Kinaxis participated in a webcast on ‘Purposeful Collaboration: What It Could Mean for Your S&OP Process’.

The two discussed how even with heavy investments in Sales and Operations Planning (S&OP), many organizations are not achieving material or sustainable breakthroughs. This is often because they are executing a sequential, disjointed process with contributors operating in their narrow functional box.

In this recorded webcast, learn how purposeful collaboration can connect content, conversations, colleagues and communities to drive improved business outcomes.

Topics covered:

  • Harnessing and capitalizing on “working social” in a B2B environment
  • Using the key tenets of purposeful collaboration to enable effective decision-making, resolution and consensus building
  • Capabilities required to facilitate purposeful collaboration in S&OP
  • Changing the mindset away from the individual supply chain / S&OP functions to connecting functions and most importantly, people

If you missed it, feel free to check out the slides or the webcast recording.

 

Posted in Demand management, General News, Inventory management, Milesahead, Sales and operations planning (S&OP), Supply Chain Events, Supply chain management