Posts Tagged ‘Sales and operations planning’

Throw back Thursday: Should we forget about the supply chain forecast?

Published July 31st, 2014 by Melissa Clow 0 Comments
CJ Wehlage forget about the forcast

Here at Kinaxis, we are starting to gear up for this year’s Kinexions (our annual training & user conference). As we get closer, I’m remembering all the great interviews we were able to do with customers and analysts. So, on this ‘Throw Back Thursday’, I would like to share ‘Should We Forget About the Supply Chain Forecast?’

In this round table discussion, Kinaxis customer Jim White, vice president of central operations with Applied Materials; Jake Barr, chief executive officer of Blue World Supply Chain Consulting; and CJ. Wehlage, vice president of high tech solutions with Kinaxis discuss: Is the forecast really dead? Should companies instead shift their focus to acquiring the ability to respond quickly to whatever happens in markets? Listen to what they have to say!

Posted in Miscellanea


What the Analysts Are Saying About…A&D Supply Chains

Published July 18th, 2014 by Bill DuBois 0 Comments

What the Supply Chain Analysts Are Saying About A and D

Are you looking for some reading material to pass the time on your next flight? Even if you’re not you should check out Supply Chain Insights, Supply Chain Metrics That Matter. For the past several years, Supply Chain Insights has been delivering this research series.  What caught my eye is that for each report, they do a deep dive on a specific industry and use a mix of financial data, survey research results and interactions with their clients to help get a better understanding of various industries’ supply chains.

I spread my Supply Chain wings at an Aerospace company and since Aerospace and Defense is a key vertical market for Kinaxis, the recent Supply Chain Metrics That Matter: A Focus on Aerospace & Defense report was downloaded on my laptop to read on my next flight. The research benchmarks A&D companies against other industries and looks at the top five A&D companies over the last decade. Although it didn’t give any suggestions on what to do when you find yourself in row 32, you know the one next to the washroom, it did discuss the challenges the industry is facing as well as offering up solid recommendations for areas of improvement.

From a challenges perspective, here are the highlights covered in this report.

The obvious challenge is the complexity in the A&D industry. The report uses the Boeing 747-8 International as an example. It has about 6 million components which are manufactured in 30 countries by 550 unique suppliers. Think about those design, sourcing and delivery challenges. I always thought getting through security these days was complex.

With such a heavy reliance on first, second, third, fourth and fifth tier suppliers and in some cases having only one or two suppliers for specific components, it’s easy to see how delays and budget overages can happen. A supply chain based so heavily on external sources is susceptible to more risk than catching a flight on time out of Newark. As Supply Chain Insights mentions, this is having a significant impact on the company’s bottom line.

Interestingly, to help address the issue of ensuring materials are available when needed; the research indicates that A&D companies have “developed some of the most advanced sourcing techniques and practices.” Companies like Lockheed Martin, are looking at new strategies for materials (raw or otherwise) that are harder to source, especially in the cases where increased Supply Chain volatility have thrown a wrench in their “Just In Time” approach. The challenge is balancing reduced material delays with rising inventory levels and longer Days of Inventory.

To help address these challenges, Supply Chain Insights makes a few recommendations that I think are spot on. Suppliers, in particular of materials that are sole sourced, play such a large and important role in the A&D supply chain, it’s vital that there be a focus on supplier collaboration and communication at every level.  A big part of this is increasing visibility into the supply chains to ensure they can anticipate and plan for potential disruptions. Focusing in these areas will help reduce supply chain risk, and make A&D companies better prepared to deal with inevitable disruptions when they do occur.

Thanks to Metrics That Matter, not only did I get some valuable A&D insights but it took my mind off of sitting in row 32 on a delayed flight out of Newark. The report covers a lot more ground than what I’ve discussed here, so feel free to download a full copy of Supply Chain Metrics That Matter: A Focus on Aerospace & Defense report here. (No registration required.)

Posted in Best practices, Demand management, General News, Supply chain collaboration, Supply chain management


Thow Back Thursday: First Solar case study ‘First Solar & Kinaxis Killed the Excel Star’. A video worth remembering

Published July 17th, 2014 by Melissa Clow 0 Comments

first solar case study kinaxis killed the excel star at kinexions

Here at Kinaxis, we are starting to gear up for this year’s Kinexions (our annual training & user conference). I quickly began to reminisce about our fun yet educational customer videos from past conferences. So, on this ‘Throw Back Thursday’, I would like to share Shellie Molina’s First Solar case study ‘First Solar & Kinaxis Killed the Excel Star”.

In this presentation, you will learn how First Solar‘s global supply chain has leveraged change management and rapid problem solving to reduce their dependency on multiple spreadsheets by building a single integrated system for manufacturing Sales and Operations Planning and construction project management. In addition to analyzing the impact of changes through what-if analysis, scenario building, dashboards and alerts, Integrated Project Management has allowed First Solar to implement a closed-loop MRP with their ERP system effectively driving activities, such as creating and rescheduling POs, from one ‘source’ schedule.

First Solar & Kinaxis killed the Excel star: they can’t rewind, they’ve come too far!

 

Presenter: Shellie Molina, vice president, global supply chain, First Solar
Over 25 years of supply chain, customer service and warranty management experience, Shellie has a diverse industry background in contract manufacturing, aerospace including avionics, mechanical, repair and overhaul, global distribution, global contact centers and warranty management. She currently leads First Solar’s Global Supply Chain which includes sales operations and planning, customer service/order management, sourcing, fulfillment, logistics, and warranty support.

Mark Zeni, director, AE fulfillment, First Solar
Shannon Rawlins, director, sales and operations planning, First Solar

Posted in Miscellanea


Mentoring, Sponsorship and Quotas: What are their relative merits in bringing more women into supply chain management?

Published May 27th, 2014 by Melissa Clow 0 Comments

Next week, June 5, 2014, we are excited to host a webcast on women in supply chain management.

We have a fantastic panel of accomplished female supply chain practitioners as well as industry expert Lora Cecere serving as the moderator. Register for the webcast to hear them discuss the thorny issues of mentoring, sponsorship, and quotas as mechanisms to get more women into supply chain, and the relative merits and drawbacks of these approaches.

Mentoring, Sponsorship, & Quotas: What are their relative merits in bringing more women into supply chain management?

Event Details:
Mentoring, Sponsorship, & Quotas: What are their relative merits in bringing more women into supply chain management?
Date: Thursday, June 5, 2014
Time: 2:00 PM to 3:00 PM ET

There is a consensus that since women constitute over half of the workforce but just 10% of top supply chain executive positions in Fortune Global 500 companies that something needs to be done to address this imbalance. While a great deal of attention gets placed on the ‘glass ceiling’ concept, there are a lot of women who face barriers and discrimination at mid and entry level positions too.  There is a clear social responsibility need and this panel will focus on the practical advantages to having more women in supply chain including:

  • Do women and men make decisions differently? If so, why does this matter to supply chain?
  • Has supply chain become more relevant to women as a career option?
  • What does a career path look like for women in supply chain?

Reserve your spot!

P A N E L I S T S :
Verda Blythe, Director, Grainger Center for Supply Chain Management, Wisconsin School of Business
Laura Dionne, Director, Worldwide Operations Planning, TriQuint
Elisabeth Kaszas, Director, Supply Chain, Amgen Inc.
Shellie Molina, VP, Global Supply Chain, First Solar

M O D E R A T O R :
Lora Cecere, Founder, Supply Chain Insights

Enhanced by Zemanta

Posted in General News, Pharma and life sciences supply chain management, Supply chain collaboration, Supply chain management


Three Distinct Capabilities of Best in Class – From the supply 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.

Enhanced by Zemanta

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


Supply Chain Leadership Series: High Tech executive focused on global external manufacturing

Published April 3rd, 2014 by CJ Wehlage 0 Comments

I am starting a blog series called “Supply Chain Leadership”, where I hope to pose thought provoking, and forward looking questions to executives in my supply chain network.  Posted monthly, this series will provide insights into the most pressing challenges, innovative items in their budgets, and how these executives have handled talent, complexity, end-to-end S&OP, and technology.

First up is a high tech executive in the enterprise storage industry. He is leading the global external manufacturing group and based in Ireland. His deep experience in working with the complexity of outsourced manufacturing, to me, is the most extensive I have known.

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

Supply Chain challenges are coming at us from multiple fronts. The ones we know about are increases in regulations, e.g. BIS, and finding the right balance between cost and the ability to service our customers in the most efficient way from an availability and lead-time standpoint. The biggest challenge, however, is being prepared for the next major Supply Chain disruption. Over the past 3 years we have had many natural disasters including ash clouds, earthquakes, flooding & hurricanes. While these events have had a really terrible impact on people lives within the region where they have occurred, they have also had a significant impact on the supply of materials to many locations world-wide. From a Supply Chain standpoint, our challenge is to prepare as robust a supply chain as possible to deal with other natural disasters that will certainly happen in the future, but we just don’t know where or when.

 

And the data supports his concern:

  • Japan Quake/Tsunami – $210B cost
  • Thailand Floods – $30B cost
  • Volcano Ash Clouds – $5B impact to global GDP

 

Global Billion-Dollar Economic Loss Events by Region

2.       Looking back at the past few years, what parts of supply chain have improved and what have you seen as the contributing factors for that improvement?

Rather than specific processes, applications or techniques, I believe the biggest improvement over the past couple of years is the general acceptance that manufacturing in, or sourcing material from, the lowest cost region is not always the right option. Many manufacturing companies, particularly in the high-tech sector, are focusing on the concept of “Right-Shoring”, which is basically optimizing multiple locations to take advantage of total cost, time to market and other factors such as consumer’s pride in “Made in x” or concerns about worker’s conditions is certain regions.

This general acceptance or mind shift change has encouraged and facilitated a different type of thinking that has driven improvements in many supply chain related areas.

 

3.       In the creation or support of your Budget Plan, what are the new items you see for this year and beyond, things that haven’t been on prior year Budgets, or things that have seen the greatest increase in priority?

One item that is chewing up a larger portion of tightening budgets is the cost associated with complying with importation regulation is many countries. As supply chain professionals, we have an obligation to ensure that our products do not present any risk to humans or the environment. However, over the past few years more and more countries have implemented unique requirements that are costing a lot of money and increased difficulties in the supply chain.

I am not really seeing enough effort to eliminate these unique requirements and move to a global standard. This needs to be a priority for our industry over the next couple of years.  

 

4.       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?

A global footprint of fulfillment sources, both our own factories and CM facilities, which allows us to vertically integrate at the most competitive, cost to best service our customers. Selecting the most suitable partners who are as interested in growing a sustainable business as we are, has been one of the most important elements of our end-to-end supply chain strategy. Our supply chain partners provide us the world class service. They totally understand the direction that our business is going and what our future needs will be, sometimes before we do ourselves.

 

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

I believe we are very aligned and connected with our supply chain nodes. We are also very much aware of alternative supply chain nodes and how quickly we could turn them on if we needed to. Partnering with some of the world’s leading supply chain experts is an integral part of our supply chain strategy. However, we always need to keep improving this alignment. The world is changing at a faster pace than ever before and we need to stay at the leading edge. Technology is improving and the use of near real-time data can provide tremendous benefits. We must embrace these changes and continue to drive further alignment to reap the benefits.

 

I find his answers fascinating.  Would you agree?

When talking about outsourcing, he calls out the real challenge… global decisions.  Connecting trading partner data is a given. What you do with that data – Decision Making – is the heart of successful external manufacturing. When a disruption occurs, whether it’s a supply shortage or a natural disaster, the ability to structure the decisions is critical.  And what makes a decision? = policies.

Visibility into data gives you just a number. The difficult part is determining what that number means. What is needed is visibility into policy, because you can now determine the relevance of what’s impacted, and the insight as to what to do about it.

Enhanced by Zemanta

Posted in Best practices, Demand management, Sales and operations planning (S&OP)


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

Enhanced by Zemanta

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


Kinaxis.com Got a Face-lift: Introducing Our Newly Re-launched Website

Published February 19th, 2014 by Melissa Clow 0 Comments

We are excited to announce our newly redesigned website!

While the need for a new website and the benefits of re-launching are too many to name, here are the top 3 things that we think will make the difference:

  1. Most importantly – It’s very different!
    We are a different company with a unique approach to solving supply chain problems with a unique product. We need a website that demonstrates that differentiation.
  2. A more modern look
    With our new site we aim to offer a better experience, especially on mobile devices.
  3. Better page design and layout
    You will notice that information is more easily consumed and digested and supporting content (images, videos, customer stats, case studies etc..) is more plentiful and better presented/promoted.

We encourage you to spend a moment visiting the new site to check out our new look and learn more about the solutions we offer for your S&OP and SCP processes.

Please feel free to send us comments or feedback you may have.

- The Marketing team

Enhanced by Zemanta

Posted in Miscellanea