Archive for the ‘Sales and operations planning (S&OP)’ Category

Transform your supply chain process – don’t just improve it

Published December 18th, 2014 by John Westerveld 0 Comments

transform your supply chain handsawDid you ever hear the joke about the old lumberjack?  The old lumberjack came out of the forest and went for supplies.  He needed a new saw – his old two-man saw had been sharpened so many times there wasn’t much left.  At the store, the salesman showed him the newest tool for cutting trees called a chain saw.  The salesman said that he can cut trees 10 times faster than with the two person hand saw.  The lumberjack was impressed! He bought one.  Several days later he came back and said to the salesman “This saw is no good!  No matter how fast I push and pull it doesn’t cut! What’s worse – my partner keeps cutting his hand because there is no handle at the other end.

Okay… admittedly that was a silly joke.  But if you consider how many people think about supply chain software it’s like the old lumberjack and the chain saw. The chain saw was a revolutionary tool and if used right, could make a single man more effective than a team of two. Advanced supply chain planning software like RapidResponse can do the same thing for supply chain.

In my role, helping the sales team, I’m often asked to reproduce a report that the prospect currently uses to run the business.  I totally understand why this is important – the prospect wants to feel assured that their current business process can be maintained. Creating even the most complex report in RapidResponse is a breeze so it’s not a big deal for us.  The prospect gets value because the report that I’ve just built in RapidResponse replaces an Excel report that takes hours every day to update. In RapidResponse, the update is instantaneous and can show changes with every data update and with every change to the scenario.

The problem when you buy new software like RapidResponse and use it to speed up the old way of doing business, you are missing out on the true revolution that RapidResponse can bring to your supply chain.   One company we were selling to a few years ago wanted us to reproduce a report that alerted the buyer whenever a purchase order was changed by the supplier through the on-line portal.  So, we did that.  We also added a few additional bits of information that they could never get before.  One was how many customers were impacted by that delay.  The other was how much revenue was impacted.  With this new information, the buyer can instantly see the priority in which they need to tackle these late purchase orders; some changes had no impact at all – the orders were just replacing safety stock.  Others drove millions in potential revenue.  This simple addition significantly reduced the time the buyer spent on chasing down late orders that really didn’t matter and allowed them to focus on the ones that did matter!

If I were to offer any advice to those looking at new supply chain software it’s this; your supply chain planning can be (and should be) a competitive advantage for your company.  You are looking for better planning because you recognize the flaws in your current system. By all means, ensure that the candidate software can address your current processes, but then work with the vendor to think outside of the box. You don’t want to do your current processes faster – you want to revolutionize your processes altogether. Only then can you achieve the supply chain transformation you seek.

Are you considering transforming your supply chain?  Have you just gone through the process? What were the results? Comment back and let us know!

Posted in General News, Response Management, Sales and operations planning (S&OP), Supply chain collaboration, Supply chain management


Your supply chain is costing you money – Reason #10 Failure to adequately train your supply chain planning staff

Published December 12th, 2014 by John Westerveld 0 Comments

Supply chain career pathOver the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money.  Over the next several weeks, I’ll outline these issues and discuss some ideas around how to avoid these practices. You can find the previous posts here:

Reason #10: Failure to adequately train your supply chain planning staff

When you think about it, your supply chain planning team is responsible for making decisions that can impact millions of dollars. A bad decision can result in missed orders, significant inventory, or scrapped materials.

Yet, when you look at the background of many supply chain planning workers, you’ll find a huge variation in education and experience. From people with a basic education that worked their way up from the shop floor, to people with engineering degrees that fell into supply chain planning, to business majors who have never been to the factory floor, to recent graduates with a supply chain planning background, but don’t have real-life experience on how manufacturing and supply chains work.

Having worked with a cross section of these people, I’ve seen the very best and the very worst. The very best include people that not only understand supply chain from end-to-end, but can also come up with creative solutions beyond what the typical supply chain education can prepare you for.

The worse have me wondering why they decided on a career in supply chain at all.  These are the planners that don’t know and don’t care how supply chain works. They do their jobs moving inventory from here to there, opening orders that the system says should be opened, cancelling orders that the system says should be cancelled, yet never questioning why or whether it makes sense.

Why is this a problem?  Lesupply chain management training t’s look at a quick example. Have you ever seen a situation where some result from a system– whether a bill from the phone company, a stock report or MRP recommended actions have been messed up?  It might be a programmatic error but more likely it is caused by bad data.  So imagine that you are a supply planner and the MRP report is telling you to increase orders 10x for an expensive component.  Do you do it?  The computer told you to, right?  If you are one of those planners that just blindly execute what the system says to do, then you probably would order it.  However, better supply chain planners might question that recommendation.  They use their knowledge of how planning systems work to peg up to find the source of the change and determine that someone changed the wrong record causing the change and confirm with the planner that the change was intended.  By doing this, they could potentially save the company millions of dollars in excess inventory.

There will always be people that just want to do things the way they always have. Don’t want training and aren’t interested in learning.  However, there are also those people who have a real drive to learn and would like to understand supply chain better. These are the folks you want to do everything in your power to give them the education they need.

While traditional supply chain training isn’t the only way to get really good at supply chain (I’ve met some planners that instinctively “got” supply chain – and knew their way around the system better than most) it certainly helps to have a good foundational knowledge of supply chain concepts.  One very good source of supply chain training is APICs (American Production and Inventory Control Society).  They have multiple resources as well as two certification programs; CPIM (Certified in Production Inventory Management) and CSCP (Certified Supply Chain Professional). CPIM is broken out in to 5 modules that each have an optional instructor led review course.  At the end of each module, the student is encouraged to write the exam.  Once all 5 exams have been passed, you achieve your CPIM certification.  CSCP consists of three workshops followed by an exam for certification.  Many companies have paid for their employees to achieve their certification and some have even brought instructors into the workplace to do the certification training there.  In reality, providing training in this way is a win-win for the company and the employee. The company gains by having better educated planners, the employee gains by having a certification that is recognized my many companies around the world.

Supply chain is a very complex world. Yet, it’s one place where practitioners can have a huge effect on the business yet have minimal education…and I really think that’s kind of cool!  But your supply chain team could be much more effective if given the right tools and some basic supply chain education.

How did you learn about supply chain?  Do you have any education advice for people just starting out and wanting to learn?  Comment back and let us know!

 

Posted in General News, Products, Response Management, Sales and operations planning (S&OP), Supply chain management


On-demand Webcast: Continuous S&OP for Life Sciences – Breaking the Mold

Published December 5th, 2014 by Melissa Clow 0 Comments

Today’s Friday post is to let you know that we have posted the on-demand version of last week’s webcast on “Continuous S&OP for Life Sciences – Breaking the Mold” (registration required). 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.

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

 

You can also view the slides that we’ve posted to slideshare:

 

Webcast Abstract
Trevor MilesView the recording of Trevor Miles, VP of Thought Leadership, Kinaxis, as he presents on the following topic.

Business 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.

Watch the recording >>

 

Posted in General News, Milesahead, Pharma and life sciences supply chain management, Sales and operations planning (S&OP), Supply Chain Events, Supply chain management


Your supply chain is costing you money – Reason #9: Relentless pursuit of one metric at the expense of other metrics.

Published December 3rd, 2014 by John Westerveld 0 Comments

supply chain metric

Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Over the next several weeks, I’ll outline these issues and discuss some ideas around how to avoid these practices.

You can find the previous posts here:

Reason #9 Relentless pursuit of one supply chain metric at the expense of other metrics

Imagine that your child brings home their report card and it’s a mix of good and fair grades.  You tell them that the only grade that matters is their geography mark.  You tell them that you expect an A in geography – and you don’t care what happens to their Math grade.  History? Don’t care.  Social studies?  Pshaw.  Just focus on geography and forget about anything else.  Sound ridiculous? It should.  Yet, these are similar instructions as what is passed down to the supply chain from executives focused on a specific supply chain metric.

One example that I’ve seen several times is around inventory targets.  The typical example is as follows;

  • A company uses complex software to model the supply chain considering a desired customer service level, lead time data, and statistical analysis of supply and demand variability.
  • This software then calculates the statistically correct, time phased safety stock levels across multiple levels of the supply chain, providing the optimum inventory in the optimum location.
  • If you sum this inventory across all locations, it represents the minimum inventory needed to achieve the desired service level given the current capabilities of the supply chain.
  • The executive team then provides the supply chain planning team with new inventory targets that are (of course) much lower than those values calculated by the inventory optimization tools.
  • The supply chain team then ramps down the inventory to the new target and responds to the inevitable stock-outs by expediting short materials and shipments.
  • The result is a lower inventory level, but much higher expedited costs and reduced customer service.

Why do companies focus on reducing a specific metric?  There can be multiple reasons. Some of the more likely are;

  • A metric (like inventory performance) is monitored by financial analysts and therefore tied to stock valuation.
  • A single metric has been performing poorly and the company wants to focus on improving that metric.
  • For the Dilbert lovers – Someone on the executive team has read an article/book espousing the importance of one metric or another (it happens more often than you’d think!).

The idea of focusing on a specific goal can indeed accelerate progress towards achieving that goal.  The problem is that nothing exists in a vacuum and if you are not careful, other metrics that you are not watching can degrade significantly.   For example, if your goal is improved customer service, the easiest way to achieve that is to a) increase safety stocks and b) increase expediting to ensure orders are delivered on time.  The next time you look at your metrics, you’ll see an improvement in on-time delivery, but you’ll also see an increase in inventory levels and operations costs due to expediting.

Things can get even crazier when individual departments have conflicting goals:

  • One group is rewarded for improved fulfillment rates while another group is rewarded for inventory reduction.
  • One group is increasing safety stocks to improve fulfillment rates while the other is trying to reduce them to cut inventory.

Sometimes laser focus on a specific goal is necessary to turn around a particularly bad metric.  However, for most a more measured approach is suggested.  There are a number of techniques and tools that can help drive improvements across the company;

1)      Systemic continuous improvement tools.  These are many and varied.  CQI, TQM, Six-Sigma, Lean, etc.  They all look at your enterprise as a whole, find waste and eliminate it. As an example, let’s look at lean and more specifically the one-less-at-a-time approach to inventory reduction.  This approach reduces the inventory in a system very gradually.  The idea here is that inventory is used as a buffer and acts to hide problems in the supply chain.  By slowing reducing inventory, you can identify those problems and solve them.  Inventory needed because of long lead time?  Find ways to reduce lead time.  Inventory needed due to sporadic demand? Find ways to reduce demand variability?  Inventory due to large lot sizes?  Find ways to reduce lot sizes through setup reduction on manufactured parts or through different contracts around purchased parts.  In this way, inventory reduction can happen without impacting other metrics like on-time delivery and operations costs.  In fact, by using this approach, on-time delivery and operations metrics often improve, while reducing inventory!

2)      Balanced scorecards.  Balanced scorecards consider multiple metrics, often with weighting and targets.  They report an overall score that considers all of these metrics. With a balanced scorecard, you can emphasize one metric over the others by giving it a higher weighting.  The key difference is that you are aware of the impact you are having on the other metrics because they are shown in the same scorecard.

3)      Balanced scorecards as decision support.  No, I’m not cheating by calling out balanced scorecards twice. (well…. maybe a bit). Here’s the thing.  When you combine balanced scorecards with an advanced planning tool that allows you to create multiple scenarios, some real magic can happen.  Imagine a balanced scorecard where you not only see what your performance has been, but you can see multiple simulation scenarios as well.  Now imagine if this balanced scorecard presented an overall score for each scenario.  Picking a course of action is as simple as looking at the scores for each scenario.  Finally, imagine if anyone in your planning team could have access to this power for each decision they need to make.  Suddenly, decisions are being made that consider the overall impact on the organization, not just against a single metric.

supply chain software balanced scorecards as decision support

A company does not succeed based on a single metric.  It takes a balanced approach and awareness of all aspects of your business to achieve success.   When targeting a specific metric for improvement, look for ways to improve that metric without negatively impacting others. It can be done and when it is, very often you’ll find that you improve the metric you are focused on and the others at the same time. 

Have you see examples where a company has focused on a single metric at the costs of all others?  What was the impact?

Comment back and let us know!

 

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


Overcoming the Challenges to Achieving End-to-End Supply Chain Visibility

Published December 1st, 2014 by Melissa Clow 2 Comments

Supply chain visibility alone won’t yield effective supply chain orchestration; it is a prerequisite capability, among others.

The 2014 Strategic Road Map for Supply Chain Visibility research recently conducted by Gartner (and included in our new Supply Chain Visibility: Envisioning the Broader Need paper), describes the current state of maturity as it relates to visibility, as follows:

“Most supply chain organizations are at Stage 2 or 3 of supply chain maturity, and thus have an inside-out view of supply chain plans, events and data. Their current visibility capabilities are most likely departmental or functional and focus separately on data and processes for planning and execution.”1

Overcoming the Challenges to Achieving End-to-End Supply Chain VisibilityThe defined maturity model consists of five stages, which means there is plenty of opportunity for organizations to make improvements in their supply chains to enhance visibility. The ultimate goal is to have visibility into not just to what is happening within your own company but extended to all areas of your supply chain, including partners. This is the shift from an inside-out to an outside-in focus. Stage 5 also entails achieving visibility across supply chain planning and execution. Attaining this level of visibility is obviously no small feat.

As supply chains get longer and more global, there has been a significant increase in the number of supply chain nodes that need to be connected and the volume of data moving among these nodes. The complexity associated with connecting these nodes – both those internal and external to the organization – is a barrier to end-to-end supply chain visibility. Data harmonization across multiple systems of record also adds another layer of complexity.

Despite these challenges, it is possible for organizations to achieve the higher levels of visibility outlined in Gartner’s model. And the benefits – which many believe include a more agile, resilient, competitive and profitable supply chain – are worth the effort.

If you are looking to establish critical supply chain visibility capabilities and progress towards higher levels in the visibility maturity model, our new paper entitled Supply Chain Visibility: Envisioning the Broader Need, is a worthwhile read. Featuring research from Gartner, the paper sheds more light on the complexities surrounding the attainment of supply chain visibility and provides a strategic roadmap for supply chain visibility initiatives. Download your copy today, as it is only be available for a limited time.

 

1Titze C., Payne T., Sarangdhar V., Devereux, P.; Gartner; 2014 Strategic Road Map for Supply Chain Visibility Initiatives; 8 September 2014

Posted in Demand management, Gartner Supply Chain Managment, General News, Sales and operations planning (S&OP), 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


Kinaxis on the road: 12th American Supply Chain & Logistics Summit

Published November 27th, 2014 by Melissa Clow 1 Comment
SCL Summit

The American Supply Chain and Logistics Summit, now in its 12th year, brings together senior executives from across the Supply Chain and Logistics fields to enjoy an unbeatable mix of networking, expert case studies, interactive debates and master classes over three exceptional days.

Join Benji Green, Director of Global Sales, Operations, Supply and Inventory Planning at Avaya for the Kinaxis supply chain optimization workshop on December 9th. Register using the link below to receive 25% off your registration.

December 8-10, 2014
Dallas, Texas

Learn More and Register for the Summit

Schedule Meeting

 

Posted in General News, Pharma and life sciences supply chain management, Sales and operations planning (S&OP), Supply chain collaboration, Supply Chain Events, Supply chain management


Your supply chain is costing you money – Reason #8: Keeping supply chain information in silos (and preventing your users from making the best decisions)

Published November 26th, 2014 by John Westerveld 0 Comments

supply chain information silos

Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money. Over the next several weeks, I’ll outline these issues and discuss some ideas around how to avoid these practices. You can find the previous posts here:

Reason #8 Keeping supply chain information in silos (and preventing your users from making the best decisions)

Don’t ask… you don’t want to know.  I can’t tell you how many times I’ve heard that phrase from different people in different contexts.  Sometimes it’s true.  I probably don’t want to know.  Sometimes (like when I hear it from my son) I probably not only want to know, I NEED to know.  Not because I want to pry (well… maybe a little) but mostly because I care and if I know I might be able to help.

When companies deploy supply chain solutions, they often make the decision for users… “you don’t want to know”.  They do this by preventing them from getting (or making it very difficult to get) any more information than they absolutely need to do their specific job.  Sometimes this information limitation actually prevents them from doing their job adequately.

Sometimes this is intentional and necessary;

  • Some companies (especially publicly traded companies) restrict access to revenue / margin information to prevent unauthorized financial data from getting out.
  • 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)

Sometimes this is intentional and questionable;

  • One company I’ve talked to told me that they limit information to their planners because they wouldn’t know what to do with it… that it would just confuse them. But in my opinion, there are few things more complex than supply chain management. Planners are smart people and if educated (APICS training should be a prerequisite in my opinion), they likely will have no problem absorbing and using additional information.
  • In other cases, information is limited because of interdepartmental rivalries, for example, “I don’t want demand planning to see my supply planning information.  I’ll tell them what they are getting.”This is just plain wrong on multiple levels.  If you hear this rational, then I’d look at your management levels and how people are being rewarded. In today’s competitive manufacturing environment, the only metrics that count are how a change impacts the company’s goals.  Departmental goals should be secondary.
  • One reason I’ve heard many times is that we don’t expose this data because one group “doesn’t care” about the information from the other group; “Demand planners don’t care about supply information; Planners don’t care about what orders are impacted by a change they are making”. Deep down we all care about the impact we are having on the company.  I think sometimes “don’t care” is the result of “I can’t” or “it’s really difficult to”. Which brings us to the next section…

Sometimes information is limited because of the systems we use;

  • Many companies suffer from limited visibility across sites.  The primary reason is that companies often grow through mergers and acquisitions and sites will often have different ERP systems that are incapable of working together.  Even if you use the same ERP system but sites are at different versions, (or even the same version but different instances) you can have limited or delayed access to information.
  • Traditional ERP systems limit access to information by making it very difficult to get the information you need.  ERP systems are transactional and are designed to view information one piece at a time.  If you look at the old green screen interface that we used back in the 70s and 80s and then compare it to a modern screen from a traditional ERP vender, you’ll notice that while the “modern version” runs on windows, it still looks and behaves very much like that green screen terminal interface.
  • Want to see summarized information in a cross-tab?  This is typically very hard to do in a typical ERP interface and you usually would need to run a report.
  • Want to see your results in a chart? Better export that to Excel.
  • Want to do add some additional information to a screen?  Sure! Submit a request.  Several months and thousands of dollars later – here you go!  This is one of the reason so many decisions get made using Excel (see “Your supply chain is costing you money – Reason #4”)

Let’s look at an example of how information can change a role.  Let’s start with the customer service representative… the person on the phone taking orders.  In many cases, the only information this person may have is a standard lead time for order promising (if they are lucky they’ll have standard lead time by part.  In most cases it’s just a fixed lead time for everything. The problem is that the lead time is likely padded and over estimates how long it will take to fulfill the order.  The reason that the customer service representative is forced to work with such limited data is that traditional systems cannot quickly and accurately provide this information.  Imagine if you could provide the customer service person with a system that determined the “capable to promise” date. A date that given the current state of the supply chain, including component availability and capacity, accurately represented when the order could be fulfilled? Imagine, as well, a system that could even show what parts, supply orders and constraints are preventing the order from being completed on time.  What if in addition to the late items, the CSR had information about who was responsible for the items or resources that were late.  Do you think that would change the order promising function?

Now, let’s look at things from the other side – the component planner/buyer.  Let’s imagine that this planner was responsible for some parts that were going to be a few days late.  They may be able to get them here on time if they expedite the shipment… at a higher cost. Should they do it? In traditional ERP systems, it is a laborious process to peg up multiple levels through the supply chain to figure out if there is any impact (the order may be simply replenishing safety stock or it could be gating a multimillion dollar sale).  With an advanced planning tool, pegging is instantaneous and you can see exactly which orders are impacted and if enabled, the revenue and margin impacts as well.  Put this information into the hands of your planners and suddenly they are making decisions based on the impact to the company, not just to their own internal metrics (like expediting costs).

So what do you think? Would your supply chain be more efficient if users could get access to more information and that information were presented in a way that helps make better decisions?  Would you want your planners to be able to see which orders a shortage is impacting?  Would you want your customer service reps to be able to see why an order is late – right down to the component order that’s holding everything up?  Do you have an additional reason why some information should be restricted?  Comment back and let us know!

 

Posted in General News, Response Management, Sales and operations planning (S&OP), Supply chain collaboration