Posts tagged as 'Supply chain planning'

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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Change is coming: How will 3D printing affect your Supply Chain?

JohnWesterveld

3D PrintingI recently had the great pleasure of teaching a group of new hires about manufacturing. As I finished describing traditional manufacturing techniques we paused to discuss 3D printing and how 3D printing will change the face of manufacturing (note I said will…not if). It was a great discussion and led me to think further about the impact 3D printing would have on the supply chain and supply chain planning.

3D printing is an additive manufacturing technique for making 3 dimensional solid objects from a digital file. In additive manufacturing, items are created by laying down successive layers of material until the entire object is created. You may have the mistaken impression that 3D printers can only fashion little plastic toys. That couldn’t be further from the truth; in addition to plastic there are 3D printers that can make ceramic, metal, food, resin, glass, medical implants, concrete (there is even a 3D printed house), and electronic components.

Currently, 3D printing is being used to create items for aviation and for NASA, prototype items for the automotive industry and approaches are being studied to use 3D printing in the medical space to create body parts such as noses and ears. Recently, a team of researchers have even created a 3D printed organ.

I’m not the first to discuss the impact of 3D printing on supply chain. You can find other Kinaxis discussions here and here.

So, let’s think about how 3D printing can impact your supply chain…

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Before Adopting a Supply Chain Planning System of Record, Consider This

MelissaClow
  • by Melissa Clow
  • Published

Supply Chain Planning System of Record

Supply chain functions have often been segmented into siloed activities specific to functional goals and that reflect organizational structure. Over the years, software has been designed, developed and deployed in the same isolated manner. In contrast to this approach, a supply chain planning (SCP) system of record (SOR) enables a company to ‘create, manage, link, align, collaborate and share its planning data across a supply chain’.1

More and more supply chain teams are recognizing the value this type of planning platform can bring to supporting their end-to-end supply chain networks. However, there are some key considerations to keep in mind when evaluating these solutions, such as:

  • Does it solve the fundamental challenges you face?
  • Is it providing something different from what you have?
  • What are your peers leveraging?
  • Is it uniquely and purposely designed for end-to-end supply chain management?
  • What ROI does it deliver?

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Video: Amgen Transforms Its Supply Chain Planning

MelissaClow

Looking to transform your supply chain? Need some inspiration? In this video, Paul Collier, supply chain senior manager of Amgen, talks about the major initiatives that the company has undertaken to improve supply-chain planning, collaboration and regulatory compliance.

Amgen knew that the business was going to be coming into some major transformative change, in terms of international expansion and product candidates that were coming through for approvals. To make this transformation, they needed supply chain planning technology that would be able to respond to that transformative change in a fast, effectively and a quality manner.

Watch now: Amgen Transforms Its Supply-Chain Planning

Amgen Transforms Its Supply Chain Planning

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The Gig Economy: Threat and Opportunity

AlexaCheater

Gig economy workers are expanding into warehouse operations

The notion of 9 to 5 is dying, and the implications to your supply chain could be monumental. According to Intuit, by 2020 there will be 7.6 million gig economy workers, with nearly 40% of Americans in non-standard jobs.

So it seems there’s no escaping it. This notion of a gig economy appears to be here to stay – at least for the foreseeable future. If you aren’t yet familiar with the term, it relates to the concept of hiring a more temporary, transient workforce. Employees who choose to work hourly jobs on a contract basis instead of joining the ranks of the permanent full-time. Many of these new positions are spawning from businesses like ride-sharing giant Uber, who are appealing to those who want to have more flexibility, be their own boss, or just make a little extra money on the side.

It’s become an increasingly hot topic in recent months, finding its way into practically every facet of the business world, and now even onto the campaign trail. Forbes recently published an article exploring what US presidential hopefuls all have to say on the topic of the gig economy. While their opinions may be mixed, nearly all of them recognize this new economic reality.

Some of the world’s largest retailers are also jumping on this bandwagon, taking the concept of hiring temporary workers for deliveries one-step further. Now they’re hiring gig workers in warehousing positions to manage inventory and stock shelves.

IndustryWeek recently explored Coke’s journey down this road, profiling the beverage maker’s relationship with tech startup Wonolo. The app matches workers with employers, based on the latest mobile and logistics technologies.

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Step Four: Stage Five Supply Chain Planning System of Record (SCP SOR)

CarolMcIntosh

Collboration is step four in acheiving a stage five SCP SORCollaborative Management is Step Four to a Stage Five Supply Chain Planning System of Record (SCP SOR)

Supply chain collaboration. What is it and why is it so important?

Today there is a focus on supply chain analytics and the automation of decision making. However, this does not preclude the need for humans and collaboration.

A quote from a Forbes article read ‘humans evolved to survive and collaborate to ensure survival’.

In my first blog I wrote about talent management. The millennial generation thrives on working in a social collaborative manner. In supply chain they need to share plans, assumptions and recommendations with others.

The Cloud

The good news is that working in the cloud makes collaboration that much easier. It is estimated that the market for cloud-based supply chains is growing at a compound annual rate of 19%.

Why Collaborate?

Yesterday the emphasis was on vertical supply chains while today companies require horizontal supply chain excellence. Global companies require data and information to be shared and decisions made across the organization very quickly.

Those of us raised in the traditional supply chain era where functional expertise was the #1 priority may think of collaboration as a very nebulous term. Today it is a necessity for timely communication and decision making from the customer to manufacturer to supplier.

The emerging digital supply chain requires data and analytics AND social media functions.

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Step Three: Stage Five Supply Chain Planning System of Record (SCP SOR)

CarolMcIntosh

Connecting the dots like in the game Simon is step three to stage five SCP SORStep Three – Connecting the Dots

How many of you are familiar with the game Simon? While Simon is really a memory game, what I really want to emphasize is that it is unpredictable. You start by pressing on one color and with every selection you are presented with a random sequence of colors that you must remember and repeat. It is random; not sequential and your decisions have to be made quickly as the game speeds up at every turn. It is just like your supply chain.

So how do you manage an integrated supply chain when you don’t know the sequence of events from day-to-day and any decision you make can impact your next action and also others in the organization?

I like to call this ‘Connecting the Dots’.

I remember starting in supply chain many years ago in procurement, negotiating pricing and managing suppliers. At the beginning, about a month after I had placed a large purchase order I was approached by accounting. It turns out that the supplier didn’t acknowledge the price and invoiced differently than the purchase order. This is one example of many accounting issues that we all know can occur but it taught me very early that everything I do can potentially impact some other part of the business and often you find out much later, often too late.

Have you ever made a bad decision?

How many of you have made quick decisions on meeting forecasts only to find out that you lost a good part of your margin on expedited freight, overtime and premium material costs?

Connecting the dots is very important for a SCP SOR because everything is related to cause and effect – understanding the impact of your decisions before you execute.

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Step Two: Stage Five Supply Chain Planning System of Record (SCP SOR)

CarolMcIntosh

Excellene is step two of a stage five SCP SOR

In my first blog I wrote about the first step to reaching a Stage Five Supply Chain Planning System of Record (SCP SOR) which was securing the right talent.

Step Two is about achieving functional excellence (or is it?).

 

SCP SOR Building Blocks

What is the necessary foundational planning layer required to support demand/supply planning for your industry?

There are specific functional requirements necessary for supply chain planning. The short list includes:

In more detail this can include:

Over the years, you have likely evaluated multiple vendors on their functional capability. However is this enough? Is it really about evaluating and optimizing each individual process?

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