Posts categorized as 'Supply chain risk management'

Cognizant – Mining Critical Data in the Era of the Internet of Things – SupplyChainBrain & Kinaxis Video Series

MelissaClow
  • by Melissa Clow
  • Published

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 the age of the Internet of Things, how can companies extract meaningful insights from the mass of data that is available to them today? We get answers from Yogesh Amraotkar of the Innovation and Solutions Group of Cognizant.

Watch now: Mining Critical Data in the Era of the Internet of Things

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Accenture – 10 Years After: How Close Are We to True Demand-Driven Supply Chains? SupplyChainBrain & Kinaxis Video Series

MelissaClow
  • by Melissa Clow
  • Published

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!

It’s been about a decade since companies began talking about the dream of a truly “demand-driven” supply chain. How far have we come? It’s been 10 years since companies began striving to create “demand-driven” supply chains. Today, companies are “realizing that perhaps it’s not quite as short a journey as we thought it would be,” says Roddy Martin, managing director of Accenture Supply Chain Strategies.

Progress has been made, however, especially among consumer-driven retailers and even some large industrial manufacturers. “We’re way down the road,” says Martin, whose comments came at the annual Kinaxis user conference.

Why has the journey been so difficult? One reason lies in companies’ heavy investment in traditional enterprise resource planning and demand-planning infrastructure, says Martin. That has led to an “inside-out” focus with businesses. But the volatility of demand, coupled with growing risk in global supply chains, has shown that this approach won’t give companies the agility they’re seeking. What they need to be pursuing is the ability to conduct demand sensing and shaping within their supply chains, made possible by complete visibility of inventory at all points.

Watch now: 10 Years After: How Close Are We to True Demand-Driven Supply Chains?

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Do your supply chain challenges have you feeling a little snowed under?

AndrewDunbar

A snowed in car represents challenges weather can create for supply chainsThe first day of spring is less than a week away but the Canadian winter is still wreaking havoc on local supply chains.

A friend of mine wrote off his beloved Mazda 3 last month after being rear-ended on a snowy country road outside of Ottawa. This unfortunate event kick-started an urgent need for a replacement vehicle that would fit his growing family and replace the car he’d loved for longer than he’d even known his three children. His wife, demonstrating both her love and a generous dose of pity for her grief-stricken husband, agreed to let him upgrade to a brand new Audi Q3. “Don’t worry my friend, the car of your dreams will be here soon. It’s already on a ship to Halifax!” assured the sales rep.

Now five weeks late, my friend’s wife is still driving him to work and her pity has all but evaporated. What went wrong you ask? It’s hard to believe, but the ‘car of his dreams’ is currently frozen to the ground at CN Rail’s Eastern Passage Autoport.

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Supply Chain Risks: Big or Small, Plan For Them All

MerandaPowers

Supply Chain Risk I suspect that few folks in the supply chain management world would argue with the fact that supply chain management is risky business.

The reality is that risk comes in many forms (including anticipated risk, uncontrollable risk and unanticipated risk). It’s constantly changing. And the amount of risk being faced by supply chain professionals has been on the rise for the past 20 years.

When we talk risk, we’re not just talking about headline-making tsunamis, floods and earthquakes. We’re talking everyday risks as well. (Some might even argue that risk in daily business activities and decision making can be just as, if not more, impactful than exceptional risk events.) Ensuring success in ‘normal’ operating conditions and when faced with catastrophic supply chain disruptions is why developing risk management strategies should be a top priority.

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Celestica’s Top Priorities for Improving Forecast Accuracy – SupplyChainBrain & Kinaxis Video Series

MelissaClow
  • by Melissa Clow
  • Published

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 Jeff Murphy, director of supply chain managed services with Celestica, describe how the company has improved forecast accuracy and demand visibility, against this backdrop of industry transformation.

Celestica has identified three main priorities in its effort to achieve supply-chain transformation: improving forecast accuracy in the face of growing demand volatility, acquiring visibility of product and optimizing of inventory at multiple locations, and synchronizing the chain from end to end.

“Having visibility is one thing,” says Murphy. “But knowing the cause of everything, with a system solution that synchronizes the entire supply chain, is key to our clients.”

Check out: Celestica’s Top Priorities for Improving Forecast Accuracy

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Throw Back Thursday: Remembering ‘Meeting Customer Demand in a Complex Industry’ from Kinexions

MelissaClow
  • by Melissa Clow
  • Published

Kinexions is in 26 days! As we countdown the days, I’m remembering our fascinating customer videos. Today I’d like to share the interview on ‘Meeting Demand in a Complex Industry’ at Kinexions.

In this video hear, Gary Dietz, Manager, Global Logistics and Supply Integrated Supply Chain and Logistics, Kennametal, as he discusses the challenges his company faces in gaining full visibility of supply and demand, and in dealing with increasing supply chain volatility.

This global manufacturer of surface-cutting tools, with headquarters in western Pennsylvania. Customers include the aerospace, surface mining, oil and gas and machine-tool industries. Dietz says the company operates in “a very demanding industry,” characterized by highly unpredictable demand. The challenge is becoming even more daunting as Kennametal moves into the developing world, its most promising source of new business.

The company’s biggest pain point, he says, is managing assets. Kennametal strives to meet customer demand for customized products, while also manufacturing to stock. Accuracy in the making and placement of items is essential, says Dietz.

To view the video in its entirety, watch it below or here.

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Your supply chain is costing you money – Reason #5 Not having a supply chain risk management process

JohnWesterveld

supply chain risk management

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 #5: Not having a supply chain risk management process

In today’s society, unless you are rich enough that you can afford to replace your possessions, pay for your health care, and cover your liabilities, you have insurance (unless you are poor enough that you can’t afford the premiums). Insurance is a form of risk mitigation. Insurance protects us against theft, fire, accidents, and health emergencies and if this were to happen, it can provide for our family when we pass. Yet, a surprising number of companies (while they have traditional insurance) do not have a supply chain risk management “insurance” aka a supply chain risk management process. To put it another way, they have insurance to protect them if someone trips on their property and sues, but don’t have a risk management process to mitigate against their top supplier going out of business. The insurance covers what could be a million dollar risk, supply chain risk management protects against what could be a MULTI-BILLION dollar risk.

Supply chain risk can be broken out into multiple different types;

  • Geographic: This includes natural disasters and political unrest. These are the types of issues that impact supply for an entire region. We saw this type of issue over the past several years with the Japan earthquake / Tsunami in and with the Thailand floods. Political issues can also have a significant impact on supply. Conflicts, government policy changes, regulatory changes and coups can mean that supply is suddenly turned off or that a market is no longer available.
  • Supplier issues: This includes quality issues, delivery reliability, financial stability, reputation, strikes, and pricing changes. We talked about many of these issues in the first post of this series – “Offshoring without getting the full picture”. The key point here is that in today’s connected supply chain, your suppliers are an extension of your own business. If your supplier fails financially, it will impact your business. If your supplier goes on strike or can’t deliver for some other reason, it will impact your business. If your supplier has had a shaky human rights record, your business’s reputation can get tarnished. If your supplier decides that you need to pay more or global currency exchange rates drive up the cost of a component (and you have no alternatives ready to go) your margins can be significantly impacted.
  • Customer Demand: Interestingly, this is often ignored when people think about supply chain risk however, it can be one of the biggest factors. If your demand decreases, you have excess inventory or idle capacity. If your demand disappears completely you are out of business. If your demand increases significantly, your supply chain can be overwhelmed and delivery becomes an issue.

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The Next Great Disruption Coming to Supply Chains

CJWehlage
  • by CJ Wehlage
  • Published

Next great disruption coming to supply chainsWhat would you say is the next great disruption coming to our supply chain world?

I’ve heard some common themes, such as weather, political changes, even war. Those are potential, and somewhat out of our control. However, there’s one great disruption already occurring, which has yet to truly “touch” supply chain. It’s the consumer. And, WOW! how they ever already impacted retail and brand marketing.

I watched a TED Talk video by Philip Evans, from Boston Consulting Group and shuddered to think that all our traditional fulfillment and inventory models can be drastically transformed by the “consumer”.

Philip Evans shares how today’s consumer is sharing a colossal amount of data to come to a buying decision. Some people call this “Big Data”. Others consider how this “data” is used, and use the term “Omni-Channel” or “Internet of Things”. Google wrote a great book, ZMOT, or Zero Moment of Truth.

ZMOT the next great disruption coming to supply chainsThis is the point where a consumer looks across all the channels in the market, using multiple devices to search reviews, ratings, styles and prices. That’s before the P&G First and Second Moments of Truth. They trust other online reviews over the brand. This is how they’ve drawn the ZMOT challenge.

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