Posts categorized as 'Supply chain management'

The Millennial Mentality: Is Your Supply Chain Ready for the Shift?

AlexaCheater

A group of millennials jump for joy. They have the purchasing power to change supply chains.It seems like everywhere I look I see mention of millennials, that ‘next generation’ who seems to be shaking things up in a big way. From the way companies do business to the products available on store shelves to the rising stars of the executive world, there’s no mistaking the millennial influence. That got me wondering, what kind of sway does this technology-loving, values-driven, need-to-know right now, group have over your supply chain. And do they deserve the power we’ve given them?

I should start by saying that I am in fact a part of this often talked about demographic, which according to Wikipedia is comprised of anyone born from the early 1980s to the early 2000s. I’ll let you guess where in that range I fall.

So why the big fuss about us up-and-comers? Well, according to Forbes, who agrees that 2015 is the Year of the Millennial, there are 80 million millennials in the U.S. alone, and it’s estimated that by 2017 we’ll be spending $200 billion annually. But it’s not just our spending power that has companies taking note. Here are a few facts from a Forbes and Elite Daily report.

  • A measly 1% are swayed to trust a brand based on advertising
  • 75% believe it’s fairly or very important for a company to give back
  • 62% will engage with brands on social media
  • 60% are often or always loyal to their regular brands
  • 42% are interested in co-creating products with companies
  • 87% use between two and three tech devices at least once a day

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What if there were no limitations to your what-if analysis? What would you simulate?

LoriSmith
  • by Lori Smith
  • Published

What if there were little, to no, limitations to the what-if analysis you could do? What if you could change anything (data, working assumptions, business rules) to explore options and see the impact instantly? What if you could do scenario simulations for any function of your supply chain? What if you didn’t need to make it an IT project to create new scenario parameters? What if I go on and on with these questions… ?

Like many supply chain capabilities discussed in the industry, it is something touted by many, but not all what-if capabilities are created equal. Many advanced supply chain planning systems involve conditions where computing power must be rationed, scenario parameters are limited and collaboration is not built-in. Yet the value of what-if analysis is in the power to put the ability to do scenario simulations in the hands of many.

What-if analysis, in the most optimal condition, would be quick, flexible, extensive, and collaborative. And because it’s fast and easy, the capability would be leveraged fully and often, leading to decision-makers being able to test multiple scenarios projecting the impact of various “what-if” alternatives and evaluating their achievement against relevant operations performance metrics so a team is choosing objectively among a full range of options.

And we would argue that is exactly what happens in RapidResponse. It’s our secret sauce after all – well maybe not so secret given how much we advocate it. The point is that what-if analysis is absolutely foundational to our product and among the most critical capability in delivering on the “Know Sooner, Act Faster” value proposition.

This came through loud and clear in some recent customer interviews, whereby our customers talked about how scenario simulations are being used across business processes (strategic to tactical) to enable new ways to analyze situations and make decisions… fast!

There are several short clips available that I hope you’ll check out, but in the meantime, here is a taste of a few on the topic of what-if.

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From Grower to Garden: The Complexities of the Nursery Supply Chain

AlexaCheater

A woman holding a plant brought by the nursery supply chainToday is ‘Take Your Plant for a Walk Day’ (yes, apparently that is a real thing), and in honor of houseplants everywhere I thought I would look at the supply chain of an industry that has long fascinated me – the nursery industry. What exactly goes in to getting all those lovely shrubs, trees and flowers from the grower to the garden?

Let me start by saying that I personally do not have a garden. Why? Because while I love plants, they do not love me. No matter how enthusiastically the very knowledgeable staff tell me that this plant or that one can survive anything, the sad truth is none has survived my very, very black thumb, despite years of trying.

That of course does not stop me from visiting my local nursery to see what they have in stock. From seeds to shoots to seedlings and fully-grown shrubs, trees and flowers – the complexities of getting these plants to the end consumer are many.

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The Fashion Supply Chain: Unraveling the Reality

AlexaCheater

Racks of clothing represent one stop on the fashion supply chainWhether you’re a fashionista or overly fond of the frumpy look, chances are you’re buying into the multi-billion dollar clothing industry. And whether you realize it or not, the garment industry supply chain is changing – both for the better and for the worse.

Cambodia, China, Taiwan, India – look at the ‘made in’ labels on your clothing and you’re likely to find these popular clothing manufacturing countries. A recent Wall Street Journal article reveals African nations such as Ethiopia may soon be added to that list thanks to their lack of minimum wage regulations. Apparently, the $67 a month workers make in Bangladesh was getting to be too costly. This represents what many feel is wrong with the industry – large companies willing to sacrifice human dignity and safety to save on their bottom line.

There have been countless examples of big fashion brands finding themselves caught up in controversy thanks to their supply chain, and the use of factories that pollute, employ child labor, mistreat workers or worse. Sadly, it took a major tragedy to open the eyes of millions to see exactly what goes into making the clothes on their backs.

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Top 3 Supply Chain Visibility Necessities… As Best Explained by Our Customers

LoriSmith
  • by Lori Smith
  • Published

Supply chain visibility… ah, yes, possibly the most over used term in the industry. And as is typical with over used terms, there are as many interpretations as there are colors in a kaleidoscope. What it means, what it involves, and what the goal is can be very different depending on the person, the organization… and even (or especially!) the solution provider.

Below you will find video links to Kinaxis customers that speak to the visibility they have gained from RapidResponse, which so fittingly articulates the three key components we believe are critical to gaining the type of visibility that can produce real value for an organization.

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A Chocolate Addict’s Plea: Know Your Supply Chain Risks!

AlexaCheater

Cocoa powder represents a supply chain riskHi, my name is Alexa and I am a chocoholic. It’s been less than a day since my last indulgence.

There’s no two ways about it. When it comes to the cocoa-laden confectionery, I’m hooked. It doesn’t matter if it’s milk, dark or white. Anything with even a hint of chocolatey goodness will suffice – and sadly for my waist line, one little taste is never enough.

What’s even more unfortunate than the effect on my figure is that it’s about to get a whole lot more difficult to feed my addiction thanks to a lack of insight into supply chain risk. The Wall Street Journal (WSJ) recently posted an article about the huge shortfall in the cocoa crop in Ghana. Dry weather coupled with the late application of vital pesticides to cocoa trees has caused the crop to shrink significantly, and sparked fears growers may not be able to deliver enough cocoa to fulfill their contracts. That means manufacturers will likely be scrambling to find enough cocoa to satisfy their chocolate producing needs.

Skyrocketing prices aside, this latest news is enough to send any chocolate lover to the store to stock up, and really puts the spotlight on a major supply chain risk in the $7 billion cocoa-futures market. As the WSJ points out, there is a drastic over reliance on the Ivory Coast and Ghana when it comes to the global cocoa supply chain. Together they account for more than half of the world’s cocoa supplies!

With that much of the world’s supply coming from one region, it’s no wonder the price and availability of chocolate fluctuates as wildly as it does. Natural disasters, poor growing conditions, pandemics, war, political and social unrest, terrorism and accidents can all have huge consequences on supply chains relying on either a single supplier, or suppliers who are all in the same geographic region.

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Sense and Respond – A Concept In Need of More Than Just Lip Service

LoriSmith
  • by Lori Smith
  • Published

“Sense and Respond”, or as we position it, “Know Sooner, Act Faster”, is a favorite topic on the Kinaxis blog. Many have had a lot to say on the topic (see here, here and here as examples). And now, so do our customers.

Before we get to that, let me ask you, do you know what the first step is that leads to being able to sense and respond? Acceptance – a recognition that you can’t plan perfectly. I suspect you are thinking to yourself, “everyone knows this and accepts this already”, right? Well, in theory and in their words they might, but in execution… not so much. For example, at a meeting with a prospect recently the team talked at length about their need to be more responsive and flexible. They said they needed to advance their processes and bring them together to be able to be more agile and effective in their planning, analysis and decision making. Awesome… music to our ears! And when the conversation turned to the capabilities they were seeking, guess what happened? They presented a series of feature checklists for each individual function, primarily focused on planning capabilities. Hmmm.

When an organization truly recognizes the difference between planning better and knowing sooner, acting faster, it means they are looking at the problem differently. And equally important, they start looking at the solution differently. The conversation changes from looking at ways to optimize the plan, to looking at ways to optimize decision-making processes when there are variances. They consider a set of capabilities that are fundamental to creating a competency in “sensing and responding” – from getting harmonized data, to being able to do quick simulations, to bringing teams together to make informed risk decisions and business tradeoffs.

We’ve posted a series of Kinaxis customer clips, among them are a few that speak to this theme. There are some pretty good insights that are definitely worthy of a listen.

TERADYNE

“…we haven’t been able to accurately forecast for a long time, and it was just fooling ourselves, and so years ago we really embraced this philosophy that, “No we can’t, so what can we do about it?”… and so what we began doing was… ”

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Step Five: Stage Five Supply Chain Planning System of Record (SCP SOR)

CarolMcIntosh

Forward Thinkers

Car on a foggy roadAs you can probably guess, this is the last step in reaching Stage Five for your Supply Chain Planning System of Record (SCP SOR).

Why can’t we predict everything?

Predictive analytics are one way to forward think. Quantitative analysis has really become popular and there is no lack of data. Data scientists are the new generation of supply chain planners. However, the assumptions and variables can be wrong… leaving you with a lot of data, but zero visibility. How do you manage the risk?

Supply chain is a risky business!

Risk management is being seen as a strategic imperative in supply chain. Events like natural disasters, world economic issues, regulatory changes, demand volatility all wreak havoc on your supply chain. With shorter lead-times and fierce competition, a missed delivery can result in losing customers and missing financial projections. A generic pharmaceutical company I worked with told us that when they miss a delivery to Walmart for a SKU they can loose the sales for the entire product line.

On the other hand, I have worked with a company that within a few hours after learning about the Japan earthquake and tsunami of 2011, were able to determine the impact of supplier late deliveries and very quickly find alternate sources of supply. How was this done?

They already had a risk management strategy in place using what if scenarios. When they modeled the impact of the tsunami, they created multiple versions of the data with different variables and assumptions. The scenarios were compared and quickly the best course of action was agreed upon. A recent Forbes article said ‘the more paths travelled the greater the likelihood of coming up with the best answer’. That is really what risk management is about. In a study completed by Accenture, they found that more than 75% of the 1,000 plus executives they interviewed consider operations risk management to be very important in addressing supply chain risk issues. They also learned that various industries have their own approach. The levers that they value for trade off decisions were different.

How does risk management relate to a SCP SOR?

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