Archive for the ‘Supply chain collaboration’ Category

Part 2: My thoughts on Gartner’s Magic Quadrant for Supply Chain Planning System of Record

Published April 17th, 2014 by Trevor Miles @milesahead 0 Comments

I was recently asked three questions on Gartner’s Magic Quadrant for Supply Chain Planning System of Record. As I said last week, I want to share these videos with our readers.

The three questions I was asked were:

  1. What do you think of the Gartner Magic Quadrant for supply chain planning system of record?
  2. In your opinion, how does RapidResponse differentiate itself as a supply chain planning system of record?
  3. From your experience, what is the level of understanding of planning systems of record in the market?

Here’s my response to question #2 (if you haven’t checked out my response to question #1, you may want to view that first).

Hope you enjoy!

In your opinion, how does RapidResponse differentiate itself as a supply chain planning System of Record?


 

You can also check out my responses to question #3 as well:

 
The report positions vendors based on completeness of vision in the supply chain planning system of record market and on their ability to execute to that vision. If you’re interested in reading the full report, the Gartner document is available upon request at http://kinax.is/Gartner.

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


Three Distinct Capabilities of Best in Class – From the suppy chain leadership series

Published April 16th, 2014 by CJ Wehlage 2 Comments

supply chain leadership seriesAs I mentioned in my last post of this series, I am starting a blog series on “supply chain leadership”. I hope to pose thought provoking, and forward looking questions to executives in my supply chain network. This series will provide insights into the most pressing challenges, innovative items in supply chain leader’s budgets, and how these executives have handled talent, complexity, end-to-end S&OP, and technology. Next up is Clarence Chen, Partner at AT Kearney.  I have known Clarence from his days at PRTM as Partner of Electronics & Semiconductors.  His background and opinions on the future of supply chain is truly fascinating.

1. As we enter 2014, how would you describe the most pressing supply chain challenges?

Some of the most pressing supply chain challenges in 2014 continues to be that of delivery, quality and cost.  I think the factors that compound those challenges are changing at a faster pace than most industries are able to cope with, thereby making attainment of the core supply chain objectives even more challenging.

There are two vectors for those factors:

1)  At a geo-demographic level there are the shifting patterns of demand and growth along with cost factors rising quickly in some geographies/countries and inputs into production.

2) At a technological level, the pace of innovation continues to accelerate.  Not only is the pace of NPI increasing in technology, but that same clock speed is now moving into broad sectors as trends such as the internet of things/devices become more pervasive beyond traditional high tech penetrating into industrial, healthcare, automotive sectors, etc.

To cope with these factors, companies have to rethink the core supply chain capabilities of plan, source, make, deliver and the skills and resources required to manage supply chains in 2014 and beyond.   Companies will need to manage with greater precision, tightness, and control over their supply chain assets and partners. Those who don’t master that well will risk high E&O and overall inventories, supply-demand mix issues which impact service levels, and slow response times to changing market demand patterns

2. The End-to-End supply chain strategy has been well documented. What capabilities does your company have that is better in class for integrating end to end?

The best-in-class companies have three distinct capabilities that are more developed than others.  First is a thorough mastery of the demand management process – not just focused on forecasting, but on developing a better “quality” of demand.  This emphasizes factors such as being able to understand whether shifts in demand represent a timing issue driven by big deals, or whether the market is fundamentally at new level of demand, and then driving the rationalization of actual demand against a plan. Second is an ability to propagate demand across an extended supply chain, taking into account the key control nodes and depth of the supply chain, and balancing that against supply, inventory, service and supply chain level constraints. Third is the ability to collaborate with key long lead time suppliers to ensure that they are able to meet the forecast and execute against actual requirements. This direct control of the end-to-end supply chain minimizes bullwhip effects, and enables the responsiveness required in today’s volatile environments.

3. How aligned and connected are you to the many supply chain nodes?  What are the reasons you would want to improve this alignment?

Back in 2010, on the heels of a severe component shortage environment as companies emerged from the 2008 market downturn, I conducted a survey with 14 leading computing and storage companies to better understand how some coped better than others with the upswing in demand, and extreme supply shortages.  The findings validated that those companies with greater visibility and control of their extended supply chain fared much better in recovering supply than those companies that did not.  By visibility and control, it means that those that had visibility at component level, and sometimes at tier 3 level visibility, coupled with planning and orchestration across the extended supply could then proactively allocate precious supply to demand priorities and manage tightly the placement of P.O.s at the extend lead times. In particular, those that modeled what their contract manufacturers and key supplier suppliers (e.g. die banks with silicon devices) and were able to balance S-D at each node fared the best.

I love Clarence’s insights, especially on the main challenge: delivery, quality, and cost.  These are the core objectives from the past 20 years, and remain the core challenges.  However, as he notes, demand demographics and speed of NPI cycles are stressing the core in new ways.  Most people want visibility.  But, a lot don’t drill into the question, “What will you do with visibility?”  As Clarence notes, the quality of demand needs to improve.  What segments are relevant?  You need to propagate this relevance throughout your supply network.  What are the insights to this change?  And, then you need to collaborate with the key nodes to execute the change.

You can see those supply chains that can prioritize change, analyze the end-to-end impact, and collaborate in real time are doing so with better margin  and operating costs, capturing more market share, and controlling supply chain risk and disruptions better.

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


Miami Vice, Diapers, SCM World and the Digital Supply Chain

Published April 14th, 2014 by CJ Wehlage 2 Comments

Let me set the scene for you:
It is Sunday, February 23, 2014 at 9:00a.m.  Location: Miami, the Trump National Doral… outside patio. I’m grasping two cups of coffee and wearing all white. I’m sitting with Kevin O’Marah and he has an inquisitive demeanor … do I have your attention?

Now, let’s go back 9 hours. I was north of San Diego celebrating at a local home. The event was the Scholars Circle White Party, to honor the donors of a local public school.  Naturally I wore white shoes, white pants, and a white shirt. I had to leave the event and go straight to the airport to catch my red-eye flight to Miami to attend the SCM World Live conference. I landed at 7am EST – nary a minute of sleep on the plane. I took a cab ride over to the Doral to meet my good friend Kevin O’Marah, Chief Content Office at SCM World (and wondering why I scheduled a 9am and not a 5pm, but that is beside the point).

Kevin and I go way back to our days at AMR Research. I always love catching up with him, sharing stories of supply chain, innovative practices and research concepts.

The first thing Kevin said to me was “you look ready for Miami!” … referring to my all white attire (for all you Millennials, it’s a Sonny Crockett thing…that’s Don Johnson from Miami Vice).

Not only was I ready for Miami and the SCM World Live conference, I was also ready for a very insightful 1+ hour back and forth with Kevin on digital demand and the impacts on supply chain.  I’m sure Kevin was expecting my insights to be on Apple or Bose, where I had worked prior.  However, I was actually captivated by an innovation on digital diapers. Yes, digital diapers.  I had just read a story about diapers that actually tweet you when they are, say, wet or soiled…

There’s a device inside each diaper: a sensor for identifying when the diaper is wet and a blue-tooth to send a tweet.  As a true supply chain practitioner, my main concern was that the cost would be too high for this product. But, when I spent some time thinking about the product and the customer experience, I concluded that the digital diaper cost could not only the same as the regular diaper, it stands a chance to be lower.  As the SCM World report “Demand Management 2020” states, “Value to the customer encompasses the product purchased as well as the complete experience around that purchase (Demand Management 2020, SCM World, Research Report, March 2014).”

Our discussion came back to how a supply chain practitioner can participate in building a “digital” product.  Certainly it takes marketing, engineering, and sales innovation, but also supply chain innovation.

Having worked at Kinaxis for a little over a year, I told Kevin, “one of the main benefits I see our customers achieving is planner productivity”.  Our end-to-end planning with exception based notifications and simulation removes steps from the process and brings significant speed. The result is that planners are more productive.  Or said another way, planners can spend more time on innovation.

The SCM World report states, “It is this translation (across demand and supply), that brings about the ability to evaluate different strategic scenarios (Demand Management 2020, SCM World, Research Report March 2014).”  Our discussion continued along these lines.  In order for supply chains to test innovation, planners need simulation capability to create scenarios.  In essence, test the innovation against operational realities and metrics.  At Kinaxis, our customers do just that. Achieve the benefit of planner productivity and use it to simulate scenarios.  Scenarios improve profit margin, inventory turns, operating costs, value to the customer, new product ramps, revenue growth, capacity, etc.

So, let’s go back to our digital diaper discussion.  How does a customer purchase diapers?  One would likely go to a retail store, buy a box of 100, get home and put 30 in the downstairs bathroom, 30 in the baby’s room, 30 in the travel bag, and the last 10 in the stroller pouch. When the 30 that are downstairs runs out, you steal from the travel bag a few times, and then probably go buy another box of 100.  Never realizing exactly how many you have. You just don’t want to be at Zero   Trust me – I have two young kids…

That’s the customer experience, much more than a spreadsheet of demand numbers for your supply chain planners.  Now, imagine your team using an application to simulate innovative scenarios and gain significant productivity.

Supply chain innovation scenario: Each tweet the diaper sends out can also count the tweets. When you get to 75 tweets, you also get a tweet or email telling you that there are 25 diapers to go, and asking if you would like a new box of 100 shipped direct to your home.  The tweet/email can also suggest other products (such as items in excess) to add to the order, or special price/promotional add-on’s. That data can also go back to the manufacturer, and used for supply chain planning.  As Kevin and I talked, we came to the possibility that the “digital” diaper could actually cost less when looking at the “complete experience around that purchase.”

SCM World And the digital supply chain

The opportunity is in front of us as supply chain practitioners.  Anything can be digital, and digital can change the supply chain significantly.  Kevin and I concluded that current business complexity keeps us so busy firefighting and resolving issues 24/7. As leaders, we need to get to true exception based end-to-end planning, and gain the benefit of planner productivity.  Only then can our supply chain planners take the time to simulate innovative scenarios that bring customer value, revenue growth, and supply chain excellence, even to products like diapers.

 

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Posted in Demand management, Miscellanea, Response Management, Supply chain collaboration


‘Know Sooner, Act Faster’: A Supply-Chain Mantra

Published April 9th, 2014 by Melissa Clow 2 Comments

SupplyChainBrain attended our annual Kinexions user conference, and while there, they completed a number of video interviews with customers, analysts, and Kinaxis executives. And, we’d like to share them!

In this interview, hear C.J. Wehlage, vice president of high-tech solutions with Kinaxis, detail industry’s major supply-chain management challenges in particular, the difficulty of obtaining full visibility of supply and demand, and dealing with the volatility of markets. Know sooner, act faster  is the mantra offered by Wehlage as a key strategy for dealing with growing market volatility. I run into supply chain practitioners who don’t know as much as they think they do, he says.  It’s about responsiveness, and how much you know about your supply chain.

 

Previously, we featured interviews with:

 

‘Know Sooner, Act Faster’: A Supply-Chain Mantra – Interview summary

CJ wehlageIn seeking upstream visibility, many companies don’t look beyond their first-tier suppliers. As a result, crises often devolve into firefighting, rather than being averted through proper oversight of all suppliers, third-party logistics providers and even the retail store.

It’s tough to put a value on the prevention of a crisis that never happens. Still, says Wehlage, that necessary level of responsiveness is the core of supply chain.  It’s the key to how managers can influence the reporting structure within their organizations. Being able to make informed decisions, and acting on them, provides executives with a level of power that isn’t reachable through traditional methods.

Responsiveness isn’t just a tool for managing supply-chain execution; it also bears a strategic element. Decisions can be driven at the C-level, rather than occurring exclusively in the trenches.

A key competency that many companies are missing today is leadership. There has to be somebody asking the end-to-end questions, says Wehlage. What’s my profitability across this?

Yet another key element of modern-day supply-chain management is obtaining the right talent. It used to be sufficient for employees to possess functional expertise. Now, end-to-end skills are critical.

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


March Networks: The World of High-Tech Security – Kinaxis & SupplyChainBrain Series

Published March 28th, 2014 by Melissa Clow 0 Comments

SupplyChainBrain attended our annual Kinexions user conference, and while there, they completed a number of video interviews with customers, analysts, and Kinaxis executives. And, we’d like to share them!

In this interview, hear Sue Montgomery, senior business analyst with March Networks, speak about the challenges her company faces in gaining full visibility of supply and demand, and in dealing with increasing supply-chain volatility. March needed visibility on a global basis, in order to reach manufacturing and configuration facilities in China, Australia, Mexico, the U.K. and U.S. Vendor purchases depend on a forecast that was difficult to put together. In addition, the company needed to monitor all of its vendor-consigned inventory.

March’s automated system, obtained from Kinaxis, keeps a close eye on purchasing patterns, making sure that buyers adhere to contracts with preferred vendors. It really helps us to monitor and make sure that [contract manufacturers] are buying our contracts at the right price and right time, Montgomery says. Other benefits of the application include better management of inventory, and a reduction in excess or obsolete materials.

Previously, we featured interviews with:

 

March Networks: The World of High-Tech Security – Interview summary

Sue Montgomery, March Networks was interviewed by SupplyChainBrainMarch Networks is a provider of video surveillance equipment. Its products can be found in the retail and banking sectors, as well as on buses and trains. All production is done by contract manufacturers, says Montgomery.

The company’s priority was obtaining a consolidated view of supply and demand. When Montgomery joined March Networks, it had three business units with separate enterprise resource planning systems, obtained through acquisition. Getting access to key information could take a couple of weeks, due to manual processes and the use of spreadsheets. The result was a serious data backlog.

March needed visibility on a global basis, in order to reach manufacturing and configuration facilities in China, Australia, Mexico, the U.K. and U.S. Vendor purchases depend on a forecast that was difficult to put together. In addition, the company needed to monitor all of its vendor-consigned inventory.

March’s automated system, obtained from Kinaxis, keeps a close eye on purchasing patterns, making sure that buyers adhere to contracts with preferred vendors. RapidResponse really helps us to monitor and make sure that [contract manufacturers] are buying to our contracts at the right price and right time, Montgomery says. Other benefits of the application include better management of inventory, and a reduction in excess or obsolete materials.

March’s priority on the supply-chain side is keeping costs down. They are doing effective cost management, and working closely with our R&D group to make sure they’re designing with cost-effective components, says Montgomery.

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


On the road again! LogiPharma Europe – April 8-9, 2014

Published March 25th, 2014 by Alissa Hurley 0 Comments
_Trevor Miles

Trevor Miles, vice president of thought leadership and industry principle, life sciences

We’re excited to be participating in LogiPharma Europe 2014 in Basel, Switzerland!

This year’s conference is focused on Supply Chain as a Customer Centric Function.

Join us for a roundtable discussion on April 8th on how to leverage the cloud to achieve true innovation in supply chain management. And, on April 9th, Trevor Miles is leading a session entitled Continuous S&OP – Breaking the Mold. In this session, he will discuss how business and technology has changed tremendously in the thirty years since S&OP was first defined, enabling much more proficient and integrated S&OP processes. Trevor will describe how companies are breaking the traditional S&OP mold from both a process and technology perspective.

During the conference follow hashtag #LogiPharma  and stop by the Kinaxis booth #21 to meet with the team and learn more about how Kinaxis has helped life science companies adopt process improvements and technology targeted at removing business “silos,” improving collaboration, and achieving significant operations performance breakthroughs. Find out more about RapidResponse for life sciences at: http://kinax.is/pharm.

More about the conference:
LogiPharma is the ONLY VP-level, end-to-end supply chain event for life science professionals, focusing on strategic and tactical improvements for Europe & the rest of the world. It caters to professionals from across the spectrum of innovative pharma, generics, animal health as well as bio tech companies, tackling the most relevant, pressing challenges and opportunities present in the industry

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


Speed as the true Innovation in Supply Chain

Published December 10th, 2013 by CJ Wehlage 2 Comments

Wow, I am recalling a great three days in Dallas, Texas this past week at the WTG Supply Chain and Logistics North American conference.  I went for a run in sunny 75 degree weather!

Now, I’m back in San Diego and just finished reading a post from a friend who is an American Airline attendant. She came to Dallas the day after I flew out, to do Airbus training.  Her blog described how she was stuck at the airport due to hundreds of canceled flights – freezing weather that went down to 20 degrees!

It looks like I left just at the right time. As the saying goes, “timing is everything…”.  This saying is much like my presentation at the conference: the topic of speed as the true innovation in supply chain. Not just speed to be fast, but velocity, which is speed moving in a specific direction.

That’s what I believe is the next innovation in supply chain. I grabbed some of my old AMR Research Top 25 data, and looked at the results of supply chain processes and tools.  It seemed like in a recession, supply chains focused on reducing costs. Lean was the top challenge.  In recovery periods, supply chains focused on improving efficiencies. Demand forecast accuracy was the top challenge. Supply chains responded in kind with functional lean efforts or functional demand forecasting projects. I love Lora Cecere’s (Supply Chain Insights) chart on “Progress in Inventory Turns and Operating Margin (2000-2012)”.  One of the best pieces of research data I’ve seen in a long while.

This shows pure “functional” focus from every industry.  Very limited “end-to-end” focus.  Consumer electronics shows a good 18% for consecutive improvement in turns and operating margin for two years.  But, for 3 consecutive years… 0%! For four consecutive years…another 0% !   Supply chains have been focusing on a few nodes of the network, and placing functional processes & tools in place to address the challenge.   If you ask a functional question to a bunch of functional systems, you will always get a functional result.   And functional results will never bring consecutive, sustaining improvements.

At Kinaxis, we have the motto: Know Sooner, Act Faster.  That’s the innovation.  Speed with direction.  Stop asking functional questions and ask end-to-end questions.  And that requires significantly faster analytics across the functional nodes.   Better said, significant velocity.  Yes, it does mean pure speed when a supply chain acts.  But, it also means speed in the right direction.  And speed comes from planning ahead, through simulating scenarios in advance of the challenge.  In fact, after reading the past seven years of Top 25 Supply Chain research, the one thing the best on this list do is: What-If planning. It is not a PhD in the corner working for days,but a core facet of their Planning.

I challenged the attendees on “Know Sooner, Act Faster”.  What do you truly “know” about your supply network.  One of the best ways to answer that question is “how much fire fighting do you do ?”.   If you are fire fighting, you are losing.  You haven’t planned ahead.  You are losing profit & margin to accomplish what an effective simulation could have prepared you for.   Tough words, sure, but great supply chain leadership should reward knowing sooner more, fire fighting less.

Then, we talked about “Acting Faster”.   I asked the audience what the first 10 minutes of every CPFR meeting was.  Answer =  Comparing Data!   That’s the best way to determine if you can act fast.  If you are checking which set of numbers each node is using, you will lose speed.  Every node has to be working off the same version of the plan.

The next great innovation in supply chain is Speed.  And, for the best supply chains, it’s quickly becoming table stakes to have your suppliers, distributors, shippers, etc, on the same plan, acting within minutes of a change, and simulating scenarios for end-to-end network turns and operating margin.  Why?  I say because the consumer is using technology to speed up their decision and purchase.  Every industry has seen their consumer build leverage, and demanding personalized attention.  Supply chain networks need to address this attention by knowing a lot sooner and acting a lot faster.

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


How do you collaborate? A look at supplier collaboration

Published November 21st, 2013 by Nazli Erdogus 9 Comments

I love to get my hands on new devices and applications that can be used in the workplace. With so much access to technology today that allows workers to be in constant contact with colleagues, you would think that collaboration would be easier than ever. But, recently, I read an article arguing that there is increasing demand for more face-to-face communication in organizations. Of course, face time with colleagues is not always possible for businesses for multiple reasons, including time constraints and the high cost of travel.

According to a survey of over 1,000 U.S. employees, conducted by Kelton Global, people were asked how they prefer to collaborate and surprisingly 72% of respondents answered in person, 23% answered online and 5% answered via phone or video conference. In addition, nearly two in five employed Americans feel there is not enough collaboration in their workplace. There definitely seems to be a gap here. So while reading these articles, I said to myself – wait a minute, I know that we can help facilitate better collaboration in the workplace, as least for supply chain professionals!

This research takes me to our annual user conference, Kinexions, which was held a few weeks ago in Scottsdale, Arizona where our customers, partners and prospects got together to hear about recent developments in RapidResponse and our customers shared their stories of successful RapidResponse deployments. We also had something unique at this conference: we were able to show ‘supplier collaboration’ in RapidResponse. This feature enables an efficient and effective process between buyers and suppliers. Using RapidResponse, enterprises have direct supplier interaction with automated B2B data exchanges for a number of different situations.

At our conference, we were eager to present the power of supplier collaboration by adding another element to it.  We showed an integrated demonstration between RapidResponse and the GT Nexus portal. We received positive interest and valuable feedback from industry analysts, customers and prospects telling us how powerful and intuitive this approach is.

The demonstration pointed out a combined solution using the RapidResponse client and GT Nexus portal where suppliers and buyers sense, evaluate, decide and act upon a supply disruption. This integrated solution displays unique capabilities including multi-enterprise visibility, immediate simulations to enact on changes, and coordinated multi-party responses.

The ability to connect with the GT Nexus portal enables the supplier to sense the real-time data across a multi-enterprise level, feed this update to RapidResponse, and let RapidResponse do its magic in re-planning and scenario analysis. The scenario comparison uses a number of business metrics and enables the decision maker to analyze the comparison on financial impacts. Then, it’s time for GT Nexus to be fed back with the analyzed data for action.

This initiative serves a broad interaction between suppliers, buyers and even a possible additional tier of suppliers involved in the supply chain. We know that  letting a supplier have access to RapidResponse to commit to requested dates and quantities is beneficial to improve the flexibility of your supply chain and the profitability of your enterprise. We’re now adding some cream on top of it.

So, what’s next? The big thing is that we are not only collaborating with the supplier, but also letting suppliers to sense changes and the opportunity to make respective changes. With this in mind, we can also say what’s next could be preventing disruptions in your supply chain before they happen. Imagine a world where you can sense the disruption coming by identifying limits through your confidence intervals, looking at important metrics that perform a negative trend, and be able to respond to that as a preventive action. That definitely sounds like the next chapter.

It seems safe to say this integration would definitely bring more than enough collaboration in supply chain platforms to answer the need for more collaboration across different teams, thus enabling companies to do a better job of providing applications that encourage collaboration.

Collaboration is important and we definitely take it seriously.

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