Posts Tagged ‘Supply chain’

Best of the Best Supply Chain Blog Posts of 2014

Published December 22nd, 2014 by Melissa Clow 0 Comments

best of the best supply chain blog-posts

As you take time over the holidays to sit back and reflect, here are the top ten excerpts from the best of the best posts on the Kinaxis supply chain blog. They touch on hot topics and industry trends discussed over the past year, so grab a coffee (or a spiked eggnog) and enjoy! We look forward to continuing the conversation in the New Year.

#1 “And much as we have had to rethink the first applications that were simply a digitization of a paper-based paradigm, we need to rethink how we structure our organizations and get work done to get maximum utility out of the digital world.”
FROM SMAC in the Middle of Supply Chain Change

#2 “Visibility is losing its clarity.”
FROM Visibility is Losing Its Clarity

#3 “The ‘ah-ha’ moments are the catalyst to innovation.”
FROM “Storage Wars” Rescues Supply Chain Ignominy

#4 “Many companies have several instances of ERP, each deployed differently. Despite many moving to a single instance of ERP there are still many ‘shadow IT’ required to do what the core ERP solution cannot. And then there is the planning layer, which is even less harmonized or standardized. Most business people consider this an IT problem. Guess what? It isn’t going away until the business makes solving the data issue their issue.”
FROM Gartner Supply Chain Leaders Conference – What Will Be Hot?

#5 “Tell me if you’ve heard this one before. Your company has implemented an S&OP process. At first it showed some promise, but now it has turned into a blamefest, attended – if at all – by lower level representatives that aren’t empowered to make decisions.”
FROM Poorly Executed or Non-Existent S&OP Is Costing Your Supply Chain Money

#6 “…a supply chain planning system of record should be focused on how it can drive tangible business outcomes not just on how to run the supply chain planning function.”
FROM Gartner’s Magic Quadrant for Supply Chain Planning System of Record

#7 “…Yet my contemporaries are the ones making large decisions about organizational structures, processes, and solutions that are rooted in mental models developed and perfected in the 1970s and 1980s. And far too many of the analysts and management consultants continue to position these mental models as best practice. They are not; they are yesterday’s practice.”
FROM Do Supply Chain Planning Systems Generate Any Value?

#8 “Collaboration is not about ’being social’, it’s about making information available, connecting people and improving business processes.”
FROM Purposeful Collaboration: What It Could Mean for Your S&OP Process

#9 “… even the smartest people can juggle no more than nine variables when making decisions. Since there are a lot more than nine variables that need to be considered when making a cross-functional decision in supply chain, the solution was to eliminate the people and let a machine make an ‘optimal’ decision. It is time that we corrected this imbalance.”
FROM The Eternal Dilemma of Decision Making: Human Judgment or Machine Optimization

#10  “Supply chain visibility alone won’t yield effective supply chain orchestration; it is a prerequisite capability, among others.”
FROM Overcoming the Challenges to Achieving End-to-End Supply Chain Visibility

 

Posted in Control tower, General News, Inventory management, Miscellanea, Supply chain comedy, Supply chain management


Top 10 Reasons Why Santa Has The Best Supply Chain

Published December 18th, 2014 by Bill DuBois 0 Comments

Since the Holiday season is upon us, what better way to celebrate than with a top 10 list, which I hope will put everyone in a festive mood!

Here are 10 Reasons Why Santa Has the Best Supply Chain

#1 No ERP system, just a list. Now, he does do some risk assessment… using patented approved simulation. For example, what if Johnny is good this year?

#2 Air freight without the fuel costs. And a big zero on the carbon footprint

#3 No capacity issues, no union, no vacation, no breaks… work is play and play is work for elves.

#4 His forecast is always accurate. Let’s see that forecast!
top 10 reasons why santa has the best supply chain

 

 

 

 

 

 

 

#5 One currency for every country. Milk and cookies.

#6 No customer service issues. If a customer is rude, obnoxious or grumpy they get a rotten egg and a lump of coal and told to stick it where the mistletoe doesn’t grow.

#7 No labor costs… except for room and board.

#8 Free overnight delivery…on everything.

#9 No need for finance or Sarbanes Oxley, Saas70… everyone is honest at the North Pole.

#10 No inventory issues. The perfect Lean, JIT system ever.

Bill Dubois top 10 reasons why santa has the best supply chain
Comment to let us know why you think Santa has the best supply chain!

From everyone at Kinaxis, and the Late Late Supply Chain Show, all the best to you and your families over the holidays.
Merry Christmas and Happy New Year!

 

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


Your supply chain is costing you money – Reason #10 Failure to adequately train your supply chain planning staff

Published December 12th, 2014 by John Westerveld 0 Comments

Supply chain career pathOver the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money.  Over the next several weeks, I’ll outline these issues and discuss some ideas around how to avoid these practices. You can find the previous posts here:

Reason #10: Failure to adequately train your supply chain planning staff

When you think about it, your supply chain planning team is responsible for making decisions that can impact millions of dollars. A bad decision can result in missed orders, significant inventory, or scrapped materials.

Yet, when you look at the background of many supply chain planning workers, you’ll find a huge variation in education and experience. From people with a basic education that worked their way up from the shop floor, to people with engineering degrees that fell into supply chain planning, to business majors who have never been to the factory floor, to recent graduates with a supply chain planning background, but don’t have real-life experience on how manufacturing and supply chains work.

Having worked with a cross section of these people, I’ve seen the very best and the very worst. The very best include people that not only understand supply chain from end-to-end, but can also come up with creative solutions beyond what the typical supply chain education can prepare you for.

The worse have me wondering why they decided on a career in supply chain at all.  These are the planners that don’t know and don’t care how supply chain works. They do their jobs moving inventory from here to there, opening orders that the system says should be opened, cancelling orders that the system says should be cancelled, yet never questioning why or whether it makes sense.

Why is this a problem?  Lesupply chain management training t’s look at a quick example. Have you ever seen a situation where some result from a system– whether a bill from the phone company, a stock report or MRP recommended actions have been messed up?  It might be a programmatic error but more likely it is caused by bad data.  So imagine that you are a supply planner and the MRP report is telling you to increase orders 10x for an expensive component.  Do you do it?  The computer told you to, right?  If you are one of those planners that just blindly execute what the system says to do, then you probably would order it.  However, better supply chain planners might question that recommendation.  They use their knowledge of how planning systems work to peg up to find the source of the change and determine that someone changed the wrong record causing the change and confirm with the planner that the change was intended.  By doing this, they could potentially save the company millions of dollars in excess inventory.

There will always be people that just want to do things the way they always have. Don’t want training and aren’t interested in learning.  However, there are also those people who have a real drive to learn and would like to understand supply chain better. These are the folks you want to do everything in your power to give them the education they need.

While traditional supply chain training isn’t the only way to get really good at supply chain (I’ve met some planners that instinctively “got” supply chain – and knew their way around the system better than most) it certainly helps to have a good foundational knowledge of supply chain concepts.  One very good source of supply chain training is APICs (American Production and Inventory Control Society).  They have multiple resources as well as two certification programs; CPIM (Certified in Production Inventory Management) and CSCP (Certified Supply Chain Professional). CPIM is broken out in to 5 modules that each have an optional instructor led review course.  At the end of each module, the student is encouraged to write the exam.  Once all 5 exams have been passed, you achieve your CPIM certification.  CSCP consists of three workshops followed by an exam for certification.  Many companies have paid for their employees to achieve their certification and some have even brought instructors into the workplace to do the certification training there.  In reality, providing training in this way is a win-win for the company and the employee. The company gains by having better educated planners, the employee gains by having a certification that is recognized my many companies around the world.

Supply chain is a very complex world. Yet, it’s one place where practitioners can have a huge effect on the business yet have minimal education…and I really think that’s kind of cool!  But your supply chain team could be much more effective if given the right tools and some basic supply chain education.

How did you learn about supply chain?  Do you have any education advice for people just starting out and wanting to learn?  Comment back and let us know!

 

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


On-demand Webcast: Continuous S&OP for Life Sciences – Breaking the Mold

Published December 5th, 2014 by Melissa Clow 0 Comments

Today’s Friday post is to let you know that we have posted the on-demand version of last week’s webcast on “Continuous S&OP for Life Sciences – Breaking the Mold” (registration required). In this webcast, learn about the unique S&OP challenges for Life Sciences companies, the importance of changing S&OP mindsets, and how to break the S&OP mold from both a process and technology perspective.

Webcast: Continuous S&OP for Life Sciences - Breaking the Mold

 

You can also view the slides that we’ve posted to slideshare:

 

Webcast Abstract
Trevor MilesView the recording of Trevor Miles, VP of Thought Leadership, Kinaxis, as he presents on the following topic.

Business realities have changed so tremendously in the last thirty years that the traditional ‘plan then execute’ S&OP model has become highly ineffective. It is unable to facilitate decision making amid acutely complex supply chain networks, or within the time horizons required. This is particularly true for Life Sciences companies faced with varying regulatory requirements and aging product portfolios.

In response, there is an emerging recognition that operational information must be accessed and evaluated on a continuous basis, whereby decisions that may have once only been considered as part of a scheduled S&OP process can be made as needed throughout the cycle. In this capacity, process execution evolves into operational orchestration.

Watch the recording >>

 

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


Overcoming the Challenges to Achieving End-to-End Supply Chain Visibility

Published December 1st, 2014 by Melissa Clow 2 Comments

Supply chain visibility alone won’t yield effective supply chain orchestration; it is a prerequisite capability, among others.

The 2014 Strategic Road Map for Supply Chain Visibility research recently conducted by Gartner (and included in our new Supply Chain Visibility: Envisioning the Broader Need paper), describes the current state of maturity as it relates to visibility, as follows:

“Most supply chain organizations are at Stage 2 or 3 of supply chain maturity, and thus have an inside-out view of supply chain plans, events and data. Their current visibility capabilities are most likely departmental or functional and focus separately on data and processes for planning and execution.”1

Overcoming the Challenges to Achieving End-to-End Supply Chain VisibilityThe defined maturity model consists of five stages, which means there is plenty of opportunity for organizations to make improvements in their supply chains to enhance visibility. The ultimate goal is to have visibility into not just to what is happening within your own company but extended to all areas of your supply chain, including partners. This is the shift from an inside-out to an outside-in focus. Stage 5 also entails achieving visibility across supply chain planning and execution. Attaining this level of visibility is obviously no small feat.

As supply chains get longer and more global, there has been a significant increase in the number of supply chain nodes that need to be connected and the volume of data moving among these nodes. The complexity associated with connecting these nodes – both those internal and external to the organization – is a barrier to end-to-end supply chain visibility. Data harmonization across multiple systems of record also adds another layer of complexity.

Despite these challenges, it is possible for organizations to achieve the higher levels of visibility outlined in Gartner’s model. And the benefits – which many believe include a more agile, resilient, competitive and profitable supply chain – are worth the effort.

If you are looking to establish critical supply chain visibility capabilities and progress towards higher levels in the visibility maturity model, our new paper entitled Supply Chain Visibility: Envisioning the Broader Need, is a worthwhile read. Featuring research from Gartner, the paper sheds more light on the complexities surrounding the attainment of supply chain visibility and provides a strategic roadmap for supply chain visibility initiatives. Download your copy today, as it is only be available for a limited time.

 

1Titze C., Payne T., Sarangdhar V., Devereux, P.; Gartner; 2014 Strategic Road Map for Supply Chain Visibility Initiatives; 8 September 2014

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


Guest Blog: Women of the Supply Chain: Responsibility, Collaboration and Bathroom Lines

Published November 20th, 2014 by Melissa Clow 0 Comments

Josh Greenbaum, Principal, Enterprise Applications ConsultingJosh Greenbaum, Principal, Enterprise Applications Consulting recently published an interesting blog that I would like to share with our readers.

Josh has over 30 years of experience in the industry as a computer programmer, systems analyst, author, consultant, and industry analyst. He founded Enterprise Applications Consulting in 1998 and has been a pioneering independent analyst and consultant ever since.

Women of the Supply Chain: Responsibility, Collaboration and Bathroom Lines

Hanging out with Kinaxis, the relatively small and always interesting supply chain vendor from Ottawa, Canada, never fails to be an eye-opening experience. It’s not just that I get to meet with a vendor and a loyal cadre of customers who are collectively pushing the envelope on all things supply chain, it’s that sometimes they’re pushing an envelope I hadn’t seen before in my peregrinations in the supply chain world.

This year’s Kinexions user conference was no different. What I heard from Kinaxis about taking RapidResponse, its in-memory supply chain planning product, further into the realm of collaboration by pushing users to self-identify their areas of responsibility represented an excellent strategic direction on the part of Kinaxis.

I also learned something from observing the lines forming outside of the bathrooms, which, if you’ll bear with me, I promise will actually reveal one of the reasons I like where Kinaxis is heading with RapidResponse.

I feel obliged to state unequivocally that I don’t usually pay much attention to plumbing and people, except when it comes to pure self-interest. But I couldn’t help noticing that the queue for the women’s room at Kinexions was one of the longest I had ever seen at a tech conference, other than my recent visit to Workday ‘s user conference.

Of course, what I’m really talking about is the proportion of women in attendance at Kinexions relative to both the number of men at Kinexions and the gender ratios found at most tech conferences. And while the lines outside the women’s room at the recent Workday conference that I attended were even longer, there’s an important difference between the disproportionate presence of women at a supply chain conference and the even greater disproportionality at a HRMS conference.

HRMS has always been, to be blunt, a comfortable domain for women in an otherwise all-male corporate world – comfortable perhaps more for the men than the women. This phenomenon is identical to the way minorities studying in the era of affirmative action were often shunted toward the social services – in order to serve their “people” – instead of being directed towards more challenging and intellectually rewarding careers in pure research, medicine, or, God forbid, the humanities. Similarly, HR was the woman’s track in business schools back when the women of my generation were getting their MBAs. This bias towards HR as a women’s field has continued, with a Forbes article from 2011 noting that 70 percent of HR jobs were held by women at that time. Judging by the lines at Workday’s conference, that ratio looks like it still holds.

When I started looking for data to back up bathroom line observation at Kinexions, I was surprised at how much women are represented in SCM, considering that the bias towards women in the HRMS world was never at play in SCM. One data point, from the National Center of Women in Technology (NCWIT), pegged the percent of women in operations research – the nerdy upper echelon of the supply chain world – at 55 percent in 2012, the highest percentage of the eight tech professions cited (#2 was database administrators, a profession where 37 percent of the positions are held by women.) This is a lot better than the percent of CIOs that are women – 24 percent – or the overall percent of women in high-tech – 26 percent – also according to the NCWIT.

So why are there so many women in supply chain roles? Maybe there is a natural bias, though one that speaks to women’s genuine strengths and not men’s discomfort. One interesting article in SCM World cited a survey of global supply chain companies in which 74% of men and 96% women surveyed believe women possess the special skills – labeled in the article as emotional intelligence, empathy and self-awareness – that are useful in managing supply chains. (This same article also claimed that only 10 percent of the senior leadership roles in the Fortune 500 were women – which means there may be a glass ceiling for the NCWIT 55 percenters who want to move up to executive positions.)

So it’s interesting to note that the number of women at Kinexions came in at 23 percent, according to the company, a number more in line with overall tech industry averages, but still higher than the percent of women who work at Google, for example (17 percent, according to IEEE Spectrum), and higher than what appears, anecdotally, to be the average at most tech conferences.

I asked Trevor Miles, Kinaxis’ resident deep-thinker, why there were more women at supply chain conferences like Kinexions, and his response dovetails nicely with those special skills I noted above. According to Trevor, women appear to be better at cooperation and collaboration and to be more open to alternative points of view, all skills that are valued in the supply chain world.

I know I’m riding a fine line between stereotyping and arm-chair sociology, but I don’t think the notion that women on average possess these characteristics in greater percentages than men is too far-fetched. What is certainly true is that supply chain planning and management don’t lend themselves to absolute truths and command and control hierarchical management. In the world of supply chain planning there are relatively few irrefutable numbers and an over-abundance of options and alternatives that need to be weighed carefully in order for an optimal decision to be made.

This means that trade-offs, compromise, collaboration, and a whole host of people skills tend to matter a lot in getting the job done. It takes teamwork, and not just individual initiative, to consider multiple and even opposing or non-obvious alternatives in order to run a supply chain. And that teamwork doesn’t just include fellow employees: Myriad stakeholders, sometimes working across multiple companies simultaneously, must be marshalled in the service of supply chain excellence.

The fact that there is rarely, if ever, a “one true number” or single, irrefutable way to solve a supply chain problem dovetails nicely with the value of tool like RapidResponse, which makes modeling and sharing different scenarios particularly easy and efficient . Indeed, the fact that Kinaxis’ RapidResponse enables a high degree of collaborative decision-making – its use practically demands collaboration, the consideration of alternatives, teamwork, and consensus-building – makes it less surprising that Kinaxis, like the supply chain world in which it lives, can draw a disproportionate number of women to its conferences.

Which leads me to Kinaxis’ plans for RapidResponse. The company has been putting a lot more emphasis on a feature that allows stakeholders to identify – in a social collaboration-lite function inside RapidResponse – the areas that they are individually responsible for and, therefore, willing to help with when a problem in supply chain planning and management arises. What this means is that when a constraint appears, or an order suddenly changes, RapidResponse is able to connect the different stakeholders who share responsibility for a particular product, supply, region, customer, partner, or what have you, and get them working collaborative on a resolution. It’s a way to take the natural collaborative tendencies of supply chain planners and managers – regardless of their gender stereotypes – and enhance those tendencies with a collaboration tool.

The other reason I like this approach is that it serves as a justification for my position on why general-purpose collaboration tools haven’t really set the world on fire, despite the incessant hype around these tools. What Kinaxis is offering is the opposite of a general-purpose tool: the company has picked an essential and well-known business process and injected a new, relatively simple, and highly valuable form of collaboration. Of course you could do this with a general-purpose collaboration tool, but it makes much more sense to have the collaborative process function in the context of the business process and its tool, in this case RapidResponse.

This responsibility function will have a lot of applicability to other areas where Kinaxis wants to take what is fundamentally a superlative planning tool. Areas like capital equipment planning, asset management, project management, and the like are ripe for the things that RapidResponse does best: to go where planning is hard and help manage the path to compromise.

Whether Kinaxis will simultaneously drive an even greater participation for women outside the supply chain world remains to be seen. But it’s important to note, considering the current sturm und drang about diversity in high-tech, particularly gender diversity, that there are domains like supply chain and tools like RapidResponse that seem to attract more than the usual number of women, for all the right reasons.

In an industry that liberally festoons itself with the trappings of hipness, the de facto status of women as a minority borders on the absurd, as do the excuses, even in companies with female CEOs, for the lack of women in decision-making positions. I doubt Kinaxis set out to upend traditional gender norms and favor women and their unique skills when it developed RapidResponse, but it’s nice to note that moving the needle in the supply chain world can also move the needle in the larger society in which we live. For the better.

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


Your supply chain is costing you money – Reason #7 Making decisions based on bad data (supply chain data accuracy)

Published November 19th, 2014 by John Westerveld 2 Comments
English: Book shelf

Over the years, working for and with numerous manufacturing companies, I’ve seen many supply chain practices that cost companies money.  Over the next several weeks, I’ll outline these issues and discuss some ideas around how to avoid these practices. You can find the previous posts here:

Making decisions based on bad data (supply chain data accuracy)

I went into a store the other day.  I’d driven an hour to get there.  I went to that particular store because their web site confirmed that they had 12 units on hand of the thing I was looking for.  When I got there and went looking, I couldn’t find it… the slot was there but there was nothing on the shelves.  I found someone from the store and asked about my item.   Yes, the computer shows they had 12 units on hand.  They went looking at the shelf the computer said the item was on (the one I just checked).  Not there.  They looked in the back.  Nope, nothing. They searched the shelves around where the item was supposed to be. Nowhere to be found.  “I’m sorry sir.  It looks like the computer made a mistake…we don’t have any”.  Hmmm… So I went back home and ordered it from Amazon.

A couple things struck me about that interaction.  Having wasted time going to that store, I’d be less inclined to use that store in the future – at least I’d be much less likely to trust their website’s inventory.  The second is that it likely wasn’t the computer that made a mistake, it was a mistake made by a person or process somewhere along the way.  And finally the same types of mistakes and process failings that resulted in my wasted trip occur all the time in supply chain. In addition to losing customers like me, those mistakes result in bad data that cost manufacturing companies millions of dollars.

Bad data in supply chain seems like it should be a minor thing.  I mean, it’s just numbers right? Let’s look at some typical supply chain data errors and think about the potential costs;

Lead time
If the planned lead-time is longer than actual, you get excess inventories. If the planned lead-time is shorter than actual, you get stock-outs and late customer orders.

Bill of Material
The Bill of Material drives material requirements through-out the supply chain. Missing components, extra components, bad effectivity dates, incorrect quantity per values will result in excess inventories, scrapped items, inaccurate costing, late customer orders, stock-outs and increased WIP.

Cost and price data
Inaccurate price and cost information impacts decisions based on margin. It can make unprofitable products appear to be profitable, and profitable products appear unprofitable.  In accurate costs can also impact pricing decisions driving higher or lower prices based on cost assumptions.  Finally, inaccurate cost information may cause you to make incorrect sourcing decisions.

Part master – ordering rules (Lot sizing, policies, etc)
Part master data controls how the system creates new supplies.  Bad data here can cause you to order too much driving excess inventory or too little driving additional ordering costs.

On Hand Inventory quantity/status
Decisions on when and how much to order are based on how much inventory the system thinks you have.  If inventory quantities or status is incorrect, excess inventory, excess costs, late customer orders and stock-outs can be the result.

Routing
The routing table describes how material flows through the shop and includes information on how long work should be scheduled across each work-center.  If this information is wrong, material will end up at the wrong work-center or the right work-center at the wrong time.  As a result, you can expect increased WIP, late customer orders and stock-outs.

Safety Stock rules/quantities
Safety stock influences the inventory levels expected on an item by item basis.  In addition to mistakes when calculating safety stock or setting safety stock rules, safety stock values can get stale.  In other words, the inputs (demand variability, lead time, etc.) that went into setting the safety stock value at the time they were set, may not be valid now.  Inaccurate safety stock values can drive excess inventory, excess costs due to expediting, late customer orders and stock-outs.

Demand (Actual Orders)
Inaccurate order information impacts in two ways; 1) an unhappy customer – especially if they don’t get what they ordered and 2) Increased costs due to excess inventory, excess costs from expediting.

Demand (Forecast)
Forecasts are always wrong.  Yet forecasts are what drive the business in many industries.   When forecasts are wrong, the result is too much inventory of some items and too little inventory of others.   This puts you in the unenviable position of having to explain to your stockholders why you have excess inventory while at the same time can’t meet revenue numbers because of stockouts.

Historical demand
Historical demand is the record of what was sold and when.  Historical demand is used to drive statistical forecasts, safety stock calculations and more.  Errors here will cause inaccurate forecasts, excess inventory, excess costs, late customer orders and stock-outs.

Capacity data
Capacity information determines what amount of work can be done in a given work center.  In finite systems, orders will be moved around to respect the available capacity.  In infinite capacity systems, planners will manually move orders around to level load work centers.  If capacity information is wrong, you can expect to see overloaded or under-loaded work-centers, excess costs due to expediting, increased WIP inventory, late customer orders and stock-outs.

As you can see, there are a variety of ways that inaccurate supply chain data can cost you money (and I’ve really only scratched the surface here).  So what can be done?  There are a number of tactics that can be used to improve supply chain data accuracy;

  • Audits – At a company I worked at in a previous life they recognized, through an earlier failed ERP implementation, the importance of data accuracy.  As such, they implemented a weekly MRP data audit where several parts were picked at random and the part master, BOM and Routing parameters were checked and validated.  In my previous post, Reason #6 Not effectively managing inventory, I talked about cycle counting.  This is a similar type of auditing targeting inventory accuracy.  In both cases, the key to improvement is root cause analysis.  If data is wrong, simply correcting the problem just fixes the data issue for that part.  Understanding how the error occurred and fixing the process that caused that error means that the error is less likely to happen again.
  • Data responsibility/data security – Ensuring that the right people are responsible for a given segment of data and that only those people can change that data is difficult and can be frustrating for some.  However, the risk of not locking down the data is that there is no control… anyone can change anything.  In the vast majority of cases, people won’t sabotage data (although that can happen).  No, usually, bad data gets created because people make changes without fully understanding the impact of what they have done.  Again, in a past life, we had one lady responsible for all item master changes made to the ERP system. Any change needed to be requested via a paper form. This form needed to have various approval levels before she would make the change.  While it did slow things down and admittedly was relatively inefficient, it ensured that any item master change was well thought out and vetted before it was made.  As a result our data accuracy percentage was consistently in the high 90s.
  • Alerting and what-if – With more advanced planning tools, you have a few more options around how to identify and correct some types of data errors.  Automatic detection of errors like missing cost data, missing sourcing data, order policy mismatches can all be detected and alerts generated that inform those responsible of potential issues.  In addition, advanced planning tools enable, through the use of simulations, the ability to try different planning parameters to see what the impact would be without actually driving any change to actual production.

Data errors if uncaught can result in millions of dollars of losses.  That being said, with some focused effort and perseverance you can eliminate the majority of data errors and get your supply chain running like the well-oiled machine it should be.

What data errors have you seen and how did it impact your supply chain?  How do you manage data errors in your supply chain?  Comment back and let us know.

 

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


Live Webcast: Continuous S&OP for Life Sciences – Breaking the Mold

Published November 17th, 2014 by Melissa Clow 0 Comments

Live Webcast: Continuous S&OP for Life Sciences - Breaking the Mold

Just a quick post to let you know of our upcoming live webcast, “Continuous S&OP for Life Sciences – Breaking the Mold“, which we will host this Wednesday, November 19th at 11am EST.

Trevor Miles, VP of Thought Leadership, Kinaxis, will present on the following topic.

Webcast Abstract

Trevor MilesBusiness realities have changed so tremendously in the last thirty years that the traditional ‘plan then execute’ S&OP model has become highly ineffective. It is unable to facilitate decision making amid acutely complex supply chain networks, or within the time horizons required. This is particularly true for Life Sciences companies faced with varying regulatory requirements and aging product portfolios.

In response, there is an emerging recognition that operational information must be accessed and evaluated on a continuous basis, whereby decisions that may have once only been considered as part of a scheduled S&OP process can be made as needed throughout the cycle. In this capacity, process execution evolves into operational orchestration.

In this webcast, learn about the unique S&OP challenges for Life Sciences companies, the importance of changing S&OP mindsets, and how to break the S&OP mold from both a process and technology perspective.

Register now!

 

Posted in Demand management, General News, Inventory management, Milesahead, Supply Chain Events