Posts Tagged ‘Supply chain management’

On the road! 4 September supply chain conferences we love

Published September 9th, 2014 by Melissa Clow 0 Comments

September is a busy time of year for us at Kinaxis – Many folks here are flying the skies to attend various conferences. Here’s the supply chain conferences we love and will be attending. Hope to see you in the coming weeks!

Gartner EMEA1. Gartner Supply Chain Executive Conference
September 10-11
London, UK

Kinaxis is pleased to be a Premier Sponsor and participate in panel discussion of the 2014 EMEA Gartner Supply Chain Executive Conference.

Panel Details:
“The Technological Advances that Will Catapult Supply Chains into the Next Decade”
Wednesday September 10th at 9:45 AM – 10:15 AM in Room Westminster B&C

Immediately following the keynote speaker, Trevor Miles, Vice President of Thought Leadership at Kinaxis, along with other technology vendors, will take part in the following panel topic: Technology advancements have been at the heart of supply chain transformations during the past decade. Throughout the next decade, a whole new set of technologies will underpin supply chain success stories. A series of thought-provoking questions focused on the future of supply chain technologies will be put to the panel.

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Supply Chain Insights Conference Image
2. Supply Chain Insights Global Summit
September 10-11
Scottsdale, AZ

Kinaxis is pleased to sponsor and participate in panel discussion the Supply Chain Insights Global Summit.

This exclusive event is designed for the line-of-business leader (Supply Chain Leaders, Chief Financial Officers and Corporate Social Responsibility Leaders) driving supply chain excellence and building value networks.

Panel Details:
“Top 15 Supply Chains to Admire”
Wednesday, September 10th at 10:30 AM – 11:15 AM in Room Westminster B&C
The Phoenician, Scottsdale, AZ

The “Top 15 Supply Chains to Admire” is the culmination of a two-year effort to evaluate supply chain performance and improvement for the years of 2006-2013 by industry by vertical for publicly-held companies. To make the list, companies out-performed their peer group on operating margin, inventory turns and Return on Invested Capital while driving significant improvement in financial metrics over the period.Supply Chain Improvement is based on a detailed analysis calculated factors for balance, strength and resiliency. This methodology, termed the Supply Chain Index, was developed in partnership with the Operations Research team at Arizona State University. As part of the panel, four ex-AMR analysts –Roddy Martin, Mickey North Rizza, Lora Cecere and CJ Wehlage– will share insights on the results and the trends.

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LogiPharma US
3. LogiPharma
September 16-18
Princeton, NJ

Kinaxis is pleased to be a sponsor and participate in panel discussion of North America’s #1 End to End Supply Chain Conference for Pharmaceutical and BioPharmaceutical Companies.

Supply Chain Visibility Panel Details:
“Getting Information from a Variety of Systems into One Location to Extract Information”
Thursday September 18th at 9:55 AM

Join Trevor Miles, Vice President, Thought Leadership at Kinaxis, along with supply chain executives, as they discuss ways to gather data from a variety of systems into one location for the purposes of gaining actionable information and insight to make decisions in real time.

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Automotive Logistics Global Conference
4. Automotive Logistics Global Conference
September 16-18
Detroit, Michigan

Kinaxis is pleased to be a Silver Sponsor of the 15th Annual Automotive Logistics Global Conference.

The Automotive Logistics Global Conference is the place where the intelligence, contacts and expertise come together to address industry challenges.  Join Kinaxis and the most senior executives from OEMs, Tier suppliers and LSPs to network, learn and do business.

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Happy Tuesday all!

Posted in General News, Sales and operations planning (S&OP), Supply Chain Events, Supply chain management


Throw Back Thursday: How Can Companies Respond Rapidly to Demand?

Published September 4th, 2014 by Melissa Clow 0 Comments

How Can Companies Respond Rapidly to Demand? Kinexions - Kinaxis & SupplyChainBrain Series

As I’ve mentioned in my last couple of Thursday blogs, we are starting to gear up for this year’s Kinexions (our annual training & user conference). A few weeks ago I began to reminisce about our videos from past conferences and I decided to create a blog series to share. So, on this ‘Throw Back Thursday’, I would like to share this video of Trevor Miles, Vice President of Thought Leadership, speaking about “How Can Companies Respond Rapidly to Demand?”.

In this video, hear Trevor 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.

Many companies seem wedded to their spreadsheets, even though they’re aware of the format’s shortcomings. Miles says executives have “a very legacy approach” to thinking about business processes. As a result, they’ve created “islands” of automation that do not add up to a coherent, smoothly flowing supply chain.

“People want to get away from that,” he says, “but it’s the manner in which they are trying to enable those different processes that is just lacking.”

If you don’t see the video below, view “How Can Companies Respond Rapidly to Demand?” here.

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


Remembering: Compromise. Confessions of a Supply Chain Dropout by Laura Dionne, TriQuint at Kinexions

Published August 21st, 2014 by Melissa Clow 0 Comments

Compromise. Confessions of a Supply Chain Dropout by Laura Dionne TriQuint at Kinexions

Like I’ve mentioned in my last couple of Thursday blogs, we are starting to gear up for this year’s Kinexions (our annual training & user conference). A few weeks ago I began to reminisce about our fun customer videos from past conferences and I decided to create a blog series to share. So, on this ‘Throw Back Thursday’, I would like to share this video of Laura Dionne, director worldwide operations planning, presenting “Compromise. Confessions of a Supply Chain Dropout”.

In this video hear Laura Dionne, JP Swanson and Guenter Schmidt speak about their experience with RapidResponse – it’s not only educational, but fun too. Please check it out!

Laura Dionne has over 30 years of semiconductor experience spanning manufacturing, supply chain, IT and operations. Her career has spanned supply network activities from the days of 13 column pads to Lotus 1-2-3, to MRP & APO and now into Her professional passion is focused around business intelligence and decision support, rapid analysis of multi-dimensional problems (profit, revenue, cost, capital) as well as the marriage of business process, IT solutions and employee development for solving business challenges.

If you don’t see the video below, view “Compromise. Confessions of a Supply Chain Dropout” here.

Posted in General News, Supply chain comedy, Supply chain management


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


Supply Chain Metrics That Matter: A Focus on Aerospace and Defense

Published July 14th, 2014 by Melissa Clow 0 Comments

metrics that matterJust a quick post to share some research courtesy of Lora Cecere of Supply Chain Insights LLC.

Supply Chain Metrics That Matter: A Focus on Aerospace and Defense

Increased complexity, slowed growth and shrinking margins are challenging the Aerospace and Defense (A&D) sector. According to recent research from Supply Chain Insights, A&D companies need a renewed focus on collaboration, visibility and core supply chain capabilities to remain competitive and win new business.

In Supply Chain Metrics That Matter: A Focus on Aerospace and Defense, Supply Chain Insights benchmarks A&D companies against other industries and dives into data from five top A&D companies over the last decade. The research highlights the supply chain challenges for this industry, as well as the critical importance of getting it right.

Complimentary report courtesy of Lora Cecere of Supply Chain Insights LLC.

Get the supply chain research >>

Posted in General News, Sales and operations planning (S&OP)


Did You Miss the Late Late Supply Chain Show at the Gartner Supply Chain Conference?

Published July 11th, 2014 by Melissa Clow 0 Comments

Achieving “3D” Vision: Defining, Designing, Delivering End-to-End Supply Chain ProcessesDid You Miss the Late Late Supply Chain Show at the Gartner Conference? Not to worry, the live show was taped!

We know not everyone was able to attend the Gartner Supply Chain Executive Conference, or our session in particular, so we made sure we could bring the supply chain show to you!

Kinaxis senior business consultant (and pseudo talk show host!), Bill Dubois, moderated a lively panel discussion entitled: ‘Achieving “3D” Vision: Defining, Designing, Delivering End-to-End Supply Chain Processes‘.

Click here to watch the recording.

Session Abstract

In the latest episode of the ‘Late Late Supply Chain Show’, host Bill Dubois and guest panelists take an entertaining and informed look at the three Ds (definition, design, delivery) of a supply chain process and technology vision. Trevor Miles provides the Kinaxis definition of a planning system of record, and guests discuss key tenets to designing and delivering it.  Hear examples of what it takes to execute, as companies share experiences on their steps towards realizing the end-to-end vision in this high-energy, interactive session.

Stacey Cornelius, VP, Operations, Nimble Storage
Tony Savoca
, Director, IT, Supply Chain and Logistics, Bristol-Myers Squibb
Trevor Miles
, VP, Thought Leadership, Kinaxis

Posted in General News, Supply Chain Events


4 Parallels between Planning a Wedding and Supply Chain Planning

Published July 9th, 2014 by Melissa Clow 3 Comments

wedding-planning-supply chain planningI got married on June 28th. After 7 years together, we decided to make it official. To be honest, I never had much interest in planning a wedding so I had lots to learn. As exciting as it was, at times the task was daunting: venue, guest list, colors, theme, bridal party, transportation, music, photography and of course the dress.

Throughout the nine months we took to plan, I realized there are a lot of similarities between wedding planning and supply chain management. Here’s my top 4 list on the parallels between the two:

4. Disruptions

To no one’s surprise, I learned that wedding planning does not always go smoothly.

Just like supply chain management, there will always be disruptions –it could be a small disruption like your parents invite people that weren’t on your original invite list or a larger one, like what a Saskatchewan couple experienced last week on their wedding day… a tornado! Despite this, their photographer was able to think quickly and capture some breathtaking photos.

Lesson learned: There will be bumps in the road but you can’t dwell on them; they need to be dealt with rapidly and maybe even a little creatively.

supply chain disruptions wedding

For business, competition continues to grow. Responding rapidly to changes is critical, whether it is ordinary daily order changes to large and unexpected supply chain disruptions such as strikes, blockades and regional tragedies. We can no longer predict the future with acceptable levels of accuracy, and so the success or failure of supply chains is dependent on how quickly and effectively stakeholders can understand and respond to evolving situations. Once you know the impact, you need to act quickly to simulate the various scenario alternatives and find the best solution. The timeliness of resolution is a key factor in mitigating any potential damage to your operations.

Risk management

wedding supply chain risk managementWe contemplated who we would ask to give a speech. For example, do you ask your husband’s friend to make a toast even though you know there’s a very good chance he will say something offensive? We decided to decrease the risk of any bad behavior by our friends and kept speeches to a minimum by only asking the best man and maid of honour to speak.

In supply chain, it is not just about avoiding risky situations, supply chain risk management has a component that many companies fail to consider; the ability to respond:

  • Even the best thought out mitigation strategy may fail when the time comes to implement;
  • events that you couldn’t have imagined (or considered too low a probability to worry about) during your risk assessment may in fact come to pass; and very importantly,
  • small events, which may be considered insignificant on their own, but that taken in sum become a large risk consideration if not managed effectively.

It is important to be proactively alerted to urgent issues before they turn into major problems.

Collaboration

Because there are so many aspects that go into successfully pulling off a wedding, it’s really important to have a good working relationship with all your vendors. One challenge that we ran into with our venue, is that every time we spoke about our wedding plans we were passed along to a different wedding coordinator to help us… and more often than not, it wasn’t the person that would be there to help us the day of. This was a little unnerving because without telling our coordinator firsthand, it felt like we were playing telephone. Getting on the same page is key since these are the people that are going to help you execute your big day.

Just like collaborating with all your vendors, guests, bridal party, those in supply chain now need to coordinate with a number of tiers in the value chain network. Because of that, supply chain visibility and supply chain coordination has been reduced and often made the brand owners dependent on suppliers for their business and operations performance results.  To be truly effective, supplier collaboration needs to go far beyond the tactical exchange of data. Key suppliers must actively review information and directly contribute to the decision-making process so that companies can exchange early warnings and collaboratively resolve supply chain risk issues. Better supplier collaboration improves the flexibility of a supply chain and the profitability of the enterprise. 

Talent

We hear a lot about supply chain talent and how important it is to build up less experienced supply chain professionals to operate an effective and efficient supply chain. The same could be said for those getting married. We certainly needed and appreciated our friends and family that supported us throughout the wedding planning process. Without their support and advice, we wouldn’t have been able to pull it off, or at least not as well.

Just like we received a lot of sage wedding and marriage advice from married friends, colleagues and acquaintances, many organizations are creating formal supply chain talent-management programs to help transfer knowledge to cultivate growth. Often, these programs aim to engage both the mentors and the mentees by providing opportunities for a connection and growth. And now, more and more colleges and universities are offering undergraduate- and graduate-degree programs in supply chain management to better prepare younger supply chain professionals to enter into the field.

 

All that said, I can officially say we did it! And I can’t wait to give advice to future engaged couple thinking about planning a wedding.

Happy Wednesday!

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


Throwback Thursday: Competing against time. A concept worth re-exploring.

Published July 3rd, 2014 by Lori Smith 0 Comments

As the idea of “Throwback Thursday” grows in popularity, we couldn’t help ourselves but to jump on board!  Despite the temptation, we’ll refrain from posting pictures of women with teased hair and big shoulder pads; men with their bell bottoms; or adorable baby pictures from a time in our lives when we were all cute.  Instead, on this quiet holiday week, we’ll keep it professional and look back on a past blog post that covers a classic concept that remains as relevant as ever. This post certainly does not have to compete against time. Enjoy!

Originally published January 12, 2012 by Trevor Miles (@milesahead)

Every now and then a concept comes along that resonates very strongly with what I perceive to be key issues in operations in general, and supply chain in particular.  One of these is the seminal work by George Stalk of Boston Consulting Group titled Time—The Next Source of Competitive Advantage published in July 1988 in which he states that:

Today, time is on the cutting edge. The ways leading companies manage time – in production, in new product development and introduction, in sales and distribution – represent the most powerful new sources of competitive advantage.

Unfortunately Stalk decided to name the book he co-wrote on the topic as “Competing Against Time” which isn’t the point, although the subheading “How time-based competition is reshaping global markets” rescues the concept, which is really about competing against the competition with time.  It is all about being more agile, more responsive, to real conditions. Stalk sets out some Rules of Response very clearly:

  • The .05 to 5 Rule
    Across a spectrum of businesses, the amount of time required to execute a service or to order, manufacture, and deliver a product is far less than the actual time the service or product spends in the value-delivery system
  • The 3/3 Rule
    During the 95 to 99.95 percent of the time a product or service is not receiving value while in the value-delivery system, the product or service is waiting. (Stalk breaks this out into 3 components of waiting, hence the 3/3.) The amount of time lost is affected very little by working harder. But working smarter has tremendous impact.
  • The 1/4-2-20 Rule
    For every quartering of the time interval required to provide a service or product, the productivity of labor and of working capital can often double. These productivity gains result in as much as a 20 percent reduction in costs.
  • The 3 x 2 Rule
    Companies that cut the time consumption of their value-delivery systems turn the basis of competitive advantage to their favor. Growth rates of three times the industry average with two times the industry profit margins are exciting – and achievable – targets.

All too often though people get the impression that these rules are only applicable in the short term.  They are not.  The issue of responsiveness in operations is driven by the latency of the information and the time it takes to respond. In other words, the time to detect that something of significance has happened and the time to respond to the change, or correct the discrepancy. Reducing either of these will have a dramatic effect on a company’s competitiveness, whether this is a short term detection of demand change that requires rescheduling manufacturing or a longer term change in technology that requires the purchase of new manufacturing capacity.

Terms such as VUCA – Volatility, Uncertainty, Complexity, and Ambiguity – or PDCA – Plan, Do, Check, Act – don’t excite me because they are focused on removing volatility and complexity, usually promoting ‘stability’ at the cost of responsiveness, whereas Stalk’s concepts are all about being responsive, being agile. To me this is the correct emphasis. While of course there is an overlap in that a decision or manufacturing process that is overly complex will result in longer lead times, it is the overall sentiment of complexity and volatility being ‘bad’ expressed in VUCA and PDCA with which I disagree.  As I wrote in a previous blog from the 2011 Gartner Supply Chain Conference:

I say embrace VUCA. Accept that it is the new norm. Resistance is futile.

Similarly, Deming’s idea of PDCA is all about process improvement, it is about ‘managing’ complexity and ensuring ‘consistent’ processes. Again, I am not saying that these are bad approaches in and of themselves, only that they are insufficient.  Knowing that you are performing a process consistently doesn’t mean that you are performing it well.  It is like assuming that if you throw everyone in jail who has committed a crime that we will live in a crime-free environment.

Far more interesting to me is the OODA – Observe, Orient, Decide, Act – idea from the US military strategist Colonel John Boyd.

The steps of the OODA loop are:

  • Observation: the collection of data by means of the senses
  • Orientation: the analysis and synthesis of data to form one’s current mental perspective
  • Decision: the determination of a course of action based on one’s current mental perspective
  • Action: the physical playing-out of decisions

While at first this may seem to be very similar to VUCA and PDCA, the key point to the OODA loop is that:

 

Time is the dominant parameter. The pilot who goes through the OODA cycle in the shortest time prevails because his opponent is caught responding to situations that have already changed.

 

In other words reduce the time to detect and the time to respond.  To put this into supply chain speak, it is all about:

  • Visibility – having access to the state of the supply chain across a wide span of operations, especially in outsourced environments, in order to detect misalignments
  • Alerting – knowing or calculating the impact of misalignments on key financial and operational metrics in order to understand the severity of the issue
  • “What-If” – working with others in the supply chain to come up with alternatives and evaluating these quickly
  • Collaboration – to reach a consensus on the best course of action that reduces risk while increasing performance

Another absolutely key concept expressed by Boyd is the need for ‘human judgment’, for the system to act as an organic whole to adapt to situations as they unfold at the location at which they unfold.  Having long chains of command that force front line people to get approval from HQ is antithical to this idea:

… large organizations such as corporations, governments, or militaries possessed a hierarchy of OODA loops at tactical, grand-tactical (operational art), and strategic levels. In addition, he stated that most effective organizations have a highly decentralized chain of command that utilizes objective-driven orders, or directive control, rather than method-driven orders in order to harness the mental capacity and creative abilities of individual commanders at each level. In 2003, this power to the edge concept took the form of a DOD publication “Power to the Edge: Command…Control…in the Information Age” by Dr. David S. Alberts and Richard E. Hayes. Boyd argued that such a structure creates a flexible “organic whole” that is quicker to adapt to rapidly changing situations. He noted, however, that any such highly decentralized organization would necessitate a high degree of mutual trust and a common outlook that came from prior shared experiences. Headquarters needs to know that the troops are perfectly capable of forming a good plan for taking a specific objective, and the troops need to know that Headquarters does not direct them to achieve certain objectives without good reason.

These are key concepts we at Kinaxis have been promoting for a long time.  Every second that we waste in making a decision is a minute less that we have available to actually respond to situation.  In sports, reaction time is a well recognized competitive advantage.  Reaction time is coupled with the ability to ‘read the game’ and, for example, to call audibles at the line of scrimmage in American football. (I have always felt more comfortable with ‘European’ sports, such as soccer, that are a lot less structured and orchestrated precisely because the players have a lot more decision making power.) So in the end perhaps Stalk’s title “Competing Against Time” was correct, but this is a process efficiency perspective.  I still prefer the OODA concept of competing with time because this is about process effectiveness.

Posted in Best practices, Miscellanea, Supply chain management, Supply chain risk management