Posts tagged as 'Supply chain planning'

The rise of IoT in supply chain planning

AlexaCheater

IoT Supply chain planningThere’s no denying the Internet of Things (IoT) has taken hold of nearly every aspect of our lives. With the number of connected devices estimated to surpass six billion next year and more than 20 billion by 2020, the steady stream of data these devices are providing can easily crowd and clog your supply chain planning processes if you’re not prepared.

Gartner Research Director Andrew Downard addressed the issue during his presentation at the Gartner Supply Chain Executive Conference by outlining three macro trends affecting supply chain planning, chief among them IoT.

He defined IoT as a system of inanimate internet-connected devices linking the physical and digital worlds, and predicted that retailers engaged in IoT partnerships with major manufacturers will take significant market share from their competitors as early as 2018.

When it comes to your supply chain planning, the data sourced from IoT-enabled devices lets you continuously sense, communicate, analyze and act.

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Supply chain planning in the digital age

MelissaClow

Recently, Madhav Durbha, Vice President of Industry Strategy at Kinaxis was interviewed by SupplyChainBrain on supply chain planning in the digital age.

I wanted to share their fascinating conversation with our readers – check out the video interview and transcript below:

Supply chain planning in the digital age

Madhav Drubha, Supply Chain Planning, SupplyChainBrain

SupplyChainBrain: What are you hearing from your customers about the biggest challenges they are facing right now in supply chain planning?

It’s fairly simple. It’s complexity and volatility are the two themes that I constantly hear from our customers, regardless of the industry, that seems to be the recurring theme.

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Kinaxis RapidResponse selected by Santen for supply chain planning

MelissaClow

Santen Pharmaceuticals Santen Pharmaceuticals has begun a significant transformation of its global supply chain environment. Santen is headquartered in Osaka, Japan and the company sells ophthalmic pharmaceutical products in approximately 60 countries. The company was looking for a single end-to-end planning platform that would reduce global planning cycle times and raise efficiency.

I’m thrilled to share that Santen Pharmaceuticals has selected Kinaxis RapidResponse for supply chain planning. Following a thorough evaluation, Santen selected Kinaxis RapidResponse because of its concurrent planning capabilities. With the deployment of RapidResponse, Santen will reduce global planning times, manual activity and eliminate the use of multiple disconnected spreadsheets. Having a consolidated view of the entire supply chain, Santen will plan for its expected performance, monitor its progress, and respond to variations to the plan as reality hits.

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[Video] Long-term supply chain planning system vision and strategy

MelissaClow

This blog is part of a video interview series. Check out the video below as well as links to other supply chain practitioner and Kinaxis executive interviews.

It’s no exaggeration to say that supply chain planning is seeing a revolution, says Jack Noppe, chief technology officer at Kinaxis. Now, no function or department has to plan in the dark or without knowledge of how a plan affects others in the supply chain.

Traditional supply chains planned in isolation because plans took place independently within each function. RapidResponse, the planning platform from Kinaxis, enables what the company calls concurrent planning. In other words, all functions plan in concert now. “That allows them to get better outcomes for the business and make decisions faster,” says Noppe.

The software’s single platform enhances end-to end-supply chain management for a number of reasons, not least that data from every source is made available much more quickly than before, Noppe says. “At the end of the day, it comes down to how much information you have when you need to make decisions, and how fast you can understand the impact of decisions.”

Long-Term Product Vision & Strategy

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[Video] Kinaxis – Revolutionizing supply chain planning

MelissaClow

This blog is part of a video interview series. Check out the video below as well as links to other supply chain practitioner and Kinaxis executive interviews.

Company processes are disconnected because their supply chain planning has grown up in a siloed manner, says John Sicard, president and CEO of Kinaxis. Consequently, it’s futile to follow that model and think you can optimize the supply chain one link at a time.

Sicard explains how Kinaxis is revolutionizing supply chain planning because it is interconnecting all of the links simultaneously. He analogizes to the human brain what the Kinaxis RapidResponse tool can do. “You have the ability to understand language and math simultaneously. It’s two different parts of your brain, yet you can’t bifurcate those. If I ask you a math question in English, you immediately respond, with no idea how those parts of the brain connected.”

“In our world, if you make a change in capacity, you instantaneously feel the impact that has on demand. Therein lies the key — it’s what we call concurrent planning.”

Revolutionizing Your Supply Chain Planning

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Moore’s Law and supply chain planning systems

Dr. MadhavDurbha

Supply chain planning systemIt was in 1965 that Dr. Gordon Moore made a prediction that changed the pace of tech. His prediction, popularly known as Moore’s law, was with regards to doubling of the number of transistors per square inch on an integrated circuit every 18 months or so. As a result of the innovations attributable to the endurance of Moore’s law over the last 50+ years, we have seen significant accelerations in processing power, storage, and connectivity. These advances continue to have major implications on how companies plan their supply chains. In my nearly two decades as a supply chain professional, I have seen quite a few changes.

Let’s look at some of the big shifts that have taken place in the supply chain planning space.

1. Planning community gets bolder in tackling scale:

Early on in my career, I remember working with a large global company who had to take their interconnected global supply chain model and slice it up into distinct independent supply chain models. This was because the processing power at the time was simply not enough to plan their supply chain in a single instance. This surgical separation of supply chains required a high degree of ingenuity and identifying the portions of supply network with the least amount of interconnections, and partition them. This was not the most optimal way to build a supply chain model, but they did what they could within the limitations of the technology then. With the advent of better processing power, they were able to consolidate these multiple instances into a single global instance leading to a better model of their business. This is just one of many such examples.

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Revolutionize Your Planning with SCP 4.0

MerandaPowers

Supply Chain PlanningLet’s face it. Current supply chain planning systems have plateaued. They’re not fast enough or agile enough to keep pace with today’s rapidly shifting digital landscape. Companies are struggling, unable to get ahead of increasing complexity and mounting risks.

But how did we get here? The truth is, we’ve been here for decades. We’re still using processes and capabilities developed in the 1960s, based on Materials Requirements Planning (MRP), MRP II and more recently advanced planning systems (APS). Excel hell is still common place – companies filling the gaps of their supply chain systems with workbook after workbook.

Yes, we’ve added optimization capabilities as technology advanced, enabling ever-more complex models. But those early processes remain in use. When it comes to supply chains, the times, they aren’t a changing.

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Move over old man. It’s time to meet supply chain planning 4.0

TrevorMiles

What I took away from the Gartner Supply Chain Executive Conference

Supply Chain Management is a relatively young practice, though many of the core principles go back many decades and are based on Operations Research concepts. These have focused on optimization and efficiency. Undoubtedly the world is a better place because of this focus on manufacturing and distribution efficiency over the past 50 years, resulting in large gains in productivity and therefore standards of living, initially in the West, but more recently around the world. All of this productivity gain was achieved in the analog phase.

We are now entering the digital phase of business. Even if we discount a great deal of the hype for what it is, hype, the reality is there has been a significant shift to digital. The title of the recent Gartner Supply Chain Executive Conference, “The Bimodal Supply Chain: Tackling Today, Preparing for Tomorrow”, says it all. It was focused on the manner in which companies can adapt to the digital world while still operating in the analog world. Hence bimodal. As outlined in the diagram below, the bimodal approach advocated by Gartner is about innovating on top of a stable platform. Once the value of the innovation has been captured and stabilized it can be drawn into the stable platform.

Gartner Supply Chain Strategy

“Disrupt or Be Disrupted — Defining the Bimodal Supply Chain”, 30 December, 2015 Analyst(s): Dana Stiffler | Jane Barrett | Debra Hofman | John Johnson

The keynote, delivered by David Willis of Distinguished Analyst at Gartner, describes the bimodal shift as:

The shift requires a new approach to investment in technology, leadership and talent, taking a more agile approach. The bimodal supply chain combines stable best practices with innovation-seeking behaviors to keep your organization competitive.

I have no question that Gartner is correct in their assertion of the need for a bimodal approach to the adoption of digital technology, whether more broadly to the business in general or specific to supply chain processes. Industry 4.0 is a reality. The Internet of Things is a reality. The only question is how quickly companies will absorb these innovations and adapt processes to accommodate them.

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