Posts Tagged ‘Manufacturing’

Five Supply Chain Definitions Every Industry Professional Should Know (Part 1)

Published August 6th, 2013 by Lori Smith 1 Comment

Here at Kinaxis we love our lists … Top 10 this, Top 5 that… so when Lora agreed to do a Q&A post with us, it was natural for it to take the form of a list.  Since starting Supply Chain Insights Lora has educated and promoted with great heart and vigor some key concepts that will bring supply chain practices (and corporate practices in general) forward.  Here are 5 distinguishing themes we’ve asked her to define.  (It’s no easy task to distill these sophisticated concepts down to a few lines. Thankfully, Lora was up for the challenge!)

1. The Supply Chain Effective Frontier – I have to admit, I keep hearing the Star Trek intro every time I come across this term ;)   I see this as the overall basis of Supply Chain Insights’ work, born out of your book, Bricks Matter.  Much of what you talk about is inherent to the goal of conquering the supply chain effective frontier.  Is that accurate?  Ultimately, what is that frontier?

Thanks Lori. I appreciate the opportunity to share with Kinaxis readers. 

The concept of the Supply Chain Effective Frontier is based on two years of research. It is founded in three belief statements:

  1. Each Supply Chain has a Different Potential. I feel that it is the role of the supply chain leader to help the organization maximize its potential. The supply chain is a complex system and these changes require careful design and system thinking. 
  2. Supply Chain Leaders need to help Organizations make the Right Trade-offs against the Business Strategy.  This requires balance between growth, profitability, cycles (cash-to-cash and inventory) and complexity. The trade-offs need to be conscious against the business strategy. Over the last decade, supply chains have increased in complexity without increasing the potential of the supply chain to absorb this complexity to drive balance in the other metrics.  As a result, I believe that most organizations are unconsciously operating on the Effective Frontier of supply chain performance.
  3. Supply Chain is not a Function. It is an End-to-End Process. Leadership is Needed to Drive Improvements. I define supply chain excellence as making year-over-year performance against business goals from the customer’s customer to the supplier’s supplier. Over the last year, at Supply Chain Insights, we have been mapping company performance and capabilities to make these trade-offs. What I find is that only 1-3% of companies have made consistent year-over-year improvements in both operating margin and inventory cycles. I also see ‘wild swings’ in the performance and backward movement in more companies than I ever expected. I feel that many companies have not held themselves accountable to balance sheet performance. Instead, they have viewed company performance or improvements on projects.

2. Outside-in Supply Chain Processes – To steal a line you’ve used, you have to “blow up” current supply chain architectures in order to establish new practices in support of the effective frontier.  Much of that lies in orienting organizations with an outside-in mentality.  What exactly does that mean?

Today’s software systems are designed inside out. The center of the supply chain is stronger than the ends. The traditional applications of CRM and SRM are inadequate. The systems need to be redesigned to enable the building of the end-to-end supply chain.

The traditional technologies catch orders and shipments and then translate the demand to the functions. There are three fallacies in this design.

  1. Order Latency: Orders carry latency of weeks and months. The longer the tail of the product portfolio or the more complex the channel, the greater the latency with the order and the more issues companies will have with meeting customer service requirements. The goal is to turn the supply chain outside in to respond to channel demand or usage with minimal latency.
  2. No Place for New Data Types. Demand and supply sensing that enables a better response is very dependent on unstructured data, maps and sensor data. There is no place to put this data in traditional architectures.
  3. Business Models. The original architectures were designed to predict what companies should make, not what they will sell.  As a result, the architectures are very “push-based” with no place for unique solutions like yours to fit into the architectures. You have been fighting these issues for the ten years that I have been covering your applications.

3. Supply Chain Trade-Offs - So the effective frontier is about making the right trade-offs for the end to end network – ultimately, it’s about being able to make profitable decisions for the enterprise.  Can you define for us further the concept of trade-offs: the elements, considerations and capabilities?

The trade-offs are costs, growth, cycles (inventory and cash-to-cash) and complexity. The concept is that each supply chain has a unique potential. And that the goal is manage the supply chain as a complex system to improve the company’s ability to improve the response.

(Conversation continued tomorrow)

Global Supply Chain Insights Summit

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


High-tech supply chain success story: Supply chain visibility is at the core

Published August 2nd, 2013 by Melissa Clow 0 Comments

Today, we want to feature several case studies from our high-tech customers. We know that high-tech/electronics manufacturers are faced with a need to innovate to satisfy ever changing customer requirements while reducing costs, largely through the outsourcing of manufacturing.  And delivering to customer expectations while coordinating the extended supply chain in an environment of constant change, is challenging.

We want to share how these high-tech/electronics industry have turned to Kinaxis to help them face these challenges head on and are seeing breakthroughs in operations performance as a result.

High-Tech customer testimonials

“With RapidResponse, we have visibility across the supply chain, including across contract manufacturers.” Read more

Finished Goods Inventory was reduced by 20% within 3 months of deploying RapidResponse.” Read more

“RapidResponse provides one integrated plan of record.” Read more

“RapidResponse helps the master scheduler improve scheduling…” Read more

Check out the case studies of two high-tech supply shains 

improving our inventory turns

TriQuint Semiconductor supply chain

If you would like to check out other case studies similar to this one, visit our TechValidate page and you will find 28 cases studies, which you may browse by industry.

More about our supply chain survey

As you may have read in our first blog of the series, we completed a customer survey project with TechValidate and are very pleased with the over 150 survey responses and the many stories we can share. And so, for our Friday posts, we have been featuring the customer results on how they are using RapidResponse in their supply chain and the benefits they are realizing.

Take a look at past topics we have explored in this series:

Voice of the customer part 1: Supply Chain Flexibility

Voice of the customer part 2: Supply Chain Visibility

Voice of the customer part 3: Supply Chain Planning

Voice of the customer part 4: What-if Analysis

Voice of the customer Part 5: Response Management

Voice of the customer part 6: Alternative Technologies

Voice of the customer part 7: Competitive Advantage

Supply chain success story: Pharmaceutical customer significantly improves inventory management

Automotive supply chain success story: customer greatly improves on time delivery performance

If you are eager to check out all the results, simply go to our TechValidate page. If you wish to use or share any of the content we’ve published to-date, click on the asset you wish to use and then select the download button to save. You can also choose the share button to distribute through various social media channels.

Happy Friday!

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


New Supply Chain Insights Report: Three Techniques to Improve Organization Alignment

Published July 30th, 2013 by Lori Smith 1 Comment

lora cecere's supply chain insights organizational alignmentWe wanted to share a recent report by Supply Chain Insights LLC entitled, “Three Techniques to Improve Organization Alignment“. This complimentary paper explores how supply chain practices can improve organizational alignment and corporate performance courtesy of Lora Cecere of Supply Chain Insights LLC.

Paper Highlights

When teams are aligned, insight to action is quicker, and greater results ensue. However, organizational alignment is easier said than done. Functions have matured in silos.

The goal of this report is to help companies change and improve alignment to build end-to-end value chains. This study found that when companies do three things, and focus on doing them well, they can substantially improve organizational alignment. Find out what those three things are…

DOWNLOAD NOW

If you like the work that Supply Chain Insights does, make sure to check out their upcoming Global Summit — a  focused event with deep content and extensive networking— taking place in September at The Phoenician in Scottsdale, AZ. As one of the conference sponsors, we hope to see you there!

And feel free to check out other third-party research reports offered in the Kinaxis resource center.

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


Visibility, Agility, and Alignment – 3 capabilities powering the modern supply chain

Published April 3rd, 2013 by Trevor Miles @milesahead 0 Comments

Over the last 20 years there has been a huge shift in Operations toward outsourcing, lead primarily by High-Tech/Electronics. This, coupled with rapid globalization not only into emerging markets, but into other developed economies too, has led to very extended and dispersed supply chains, often with competing objectives and region-specific product portfolios. While this is a well discussed topic, the diagrams below bring home the extent of the outsourcing and globalization through foreign direct investment. In 2009, the amount of foreign direct investment exceeded the inward investment by $1.2T, which is the equivalent of 7.5 Apples, 26 Ciscos, or 68 Bristol-Myers Squibbs. In other words there was a huge amount of globalization taking place worldwide. The extent of the outsourcing can be seen in the Developing Economies’ values, where the net inward investment was $2.2T in 2009 alone.

Alignment

US Federal Reserve, Offshoring Bias in U.S. Manufacturing: Implications for Productivity and Value Added, Susan N. Houseman, Christopher J. Kurz, Paul Lengermann, Benjamin R. Mandel, Sept 2012 (page 71)

 

US Congress, “Outsourcing and Insourcing Jobs in the US Economy: Evidence Based upon Foreign Investment Data”, May 10, 2012 (page 9)

One of the major consequences of both outsourcing/off-shoring and globalization is a loss of visibility to global operations, and therefore a loss of control and confidence. Many companies are desperate to regain control through visibility and alignment across functions and across trading partners. While getting back to the level of control companies had over vertically integrated companies operating locally is never going to return, at least with visibility, agility, and alignment, companies can know sooner about potential risks and opportunities, and act faster to reduce the risk or capture as much of the opportunity as possible.

Alignment is key to achieving this level of operational maturity. So I am happy that Supply Chain Insights LLC is conducting a survey on Supply Chain Alignment. This survey hopes to find out how organizations align functions (sales, marketing, finance, information technology, source, make and deliver) to realize their supply chain strategy. They are also looking to learn, ‘How well do they work together to drive opportunity?’ and ‘which pieces of the organization are better aligned?’ Of course this applies equally to vertically integrated or highly outsourced supply chains.  The issue remains the same: How to best coordinate demand satisfaction in a profitable manner across the globe.

The objective of this survey is to understand how different groups within manufacturing companies view their supply chain agility, team alignment and performance against functional goals. The bonus is that if you participate, Supply Chain Insights will give you an hour and share the results freely, while of course keeping you data confidential.

You can participate in this study by clicking on this link.

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Posted in Control tower, Demand management, Inventory management, Milesahead, On-demand (SaaS), Response Management, Sales and operations planning (S&OP), Supply chain collaboration, Supply chain management


How Do Organizations Align Functions? A Supply Chain Alignment Questionnaire

Published March 27th, 2013 by Melissa Clow 0 Comments

FunctionsHave you ever wondered, ‘How do organizations align functions? We have! So, we wanted to share the opportunity to participate in a survey, which is being conducted by Supply Chain Insights LLC examining Supply Chain Alignment.

This survey hopes to find out how organizations align functions (sales, marketing, finance, information technology, source, make and deliver) to actualize the supply chain strategy. They are also looking to learn, ‘How well do they work together to drive opportunity?’ and ‘which pieces of the organization are better aligned?’

And, if you decide to participate, they keep your answers confidential. But, Supply Chain Insights will give you an hour and share the data freely. Join this study to find the results!

Objective:

The objective of this survey is to understand how different groups within manufacturing companies view their supply chain agility, team alignment and performance against functional goals.

The scope of the survey:

  • This survey is targeted at manufacturing companies.
  • Your trust is important to us: all responses will be kept anonymous and only reported in aggregate.
  • If you take the survey, we will share the results with you, helping you to benchmark your company against your peers.
  • Supply Chain Insights is offering all participants a personalized, one-hour phone call to review the results with you.

Interested in participating? Take the survey!

Feel free to invite your colleagues to take this study too.

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


SupplyChainBrain Video Series Part 6 Power of One – Collaborative Planning and Execution across the End-to-End Supply Chain

Published March 2nd, 2013 by Melissa Clow 0 Comments

In October, SupplyChainBrain attended our annual Kinexions user conference. At our event they completed a number of video interviews with some customers, analysts, and Kinaxis executives. These videos are loaded with great information and we would like to share it with our readers.

Each week for the coming weeks, we will be highlighting a clip from SupplyChainBrain. Next up, a discussion with Procter & Gamble (now retired), Supply Chain Insights; NCR Corp. and Kinaxis.

Power of One: Collaborative Planning and Execution across the End-to-End Supply Chain

Breaking down functional silos to create transparent and responsive end-to-end supply chains has long been an intractable problem, but many companies are finding success using a Control Tower concept that gets everyone working off the same plan and focused on the same outcome. Discussing this approach, and the Kinaxis solutions that pioneered it, are: Paul Bittinger, former supply chain transformation manager, Procter & Gamble (now retired); Lora Cecere, founder and CEO, Supply Chain Insights; Don Gaspari, director, global materials and inventory, NCR Corp.; and Kirk Munroe, vice president of marketing, Kinaxis.
[Run Time (Min.): 18:21]

 

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Posted in Control tower, Demand management, Inventory management, On-demand (SaaS), Response Management, Sales and operations planning (S&OP), Supply chain collaboration, Supply chain comedy, Supply chain management, Supply chain risk management


Upcoming S&OP Webcast Series: Why Bricks Matter – The Race for Supply Chain 2020

Published February 22nd, 2013 by Melissa Clow 0 Comments

On Thursday, February 28, 2013 at 1:30PM EST – 2:45PM EST, we will be hosting a webcast with Lora Cecere, Founder, Supply Chain Insights, entitled, “Why Bricks Matter – The Race for Supply Chain 2020″.

webcast

Event Details:Currently, companies are facing a supply chain plateau. Growth has slowed, inventories are rising, and operating margins are degrading. How do companies reverse these trends? They need to move from inside-out to outside-in and work horizontally across functions. The focus needs to be on the creation of value networks.

Join us to hear Lora Cecere and Kirk Munroe, VP Marketing, Kinaxis, discuss the principles of being market-driven and how it will differentiate companies in the race for Supply Chain 2020. Where she will address the following topics:

  • What is a market-driven value network and why does it matter?
  • How do we redefine supply chain excellence to move forward and make progress on this supply chain plateau?
  • How can technology help?

If you’re interested in listening in, register here. We hope to see you on the webcast!

 

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


SupplyChainBrain Video Series Part 2: Improving Inventory Control at TriQuint Semiconductor

Published February 8th, 2013 by Melissa Clow 0 Comments

In October, SupplyChainBrain attended our annual Kinexions user conference. At our event they completed a number of video interviews with some customers, analysts, and Kinaxis executives. These videos are loaded with great information and we would like to share it with our readers.

Each week for the coming weeks, we will be highlighting a clip. Next up, TriQuint Semiconductor!

Improving Inventory Control at TriQuint Semiconductor

J.P. Swanson, systems architect at TriQuint Semiconductor, explains how the company uses the RapidResponse solution from Kinaxis to see into its component supply chain and accurately project finished goods inventory, resulting in better customer service and inventory control.
[Run Time (Min.): 9:20]

 

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Posted in Control tower, Inventory management, Miscellanea, Sales and operations planning (S&OP), Supply chain collaboration, Supply chain management, Supply chain risk management