Posts by Duncan Klett

How supply chain planners should spend their time, with cues from Chris Hadfield

DuncanKlett

Chris Hadfield, KinexionsI was fascinated watching the key note address from Chris Hadfield at the Kinaxis user conference, Kinexions 2017. Canadians and space junkies will know him as the first Canadian to walk in space and as a commander of the International Space Station.

While in space, he also did a live stream playing Space Oddity from the ISS. See his web page, http://chrishadfield.ca/ for more information.

But, it was not all his accomplishments that made everyone else in the room feel inadequate. It was his level of preparation. As Hadfield said, “Astronauts are not adrenalin junkies. Adrenalin is an indication of lack of preparation and can have fatal results.” Rather, astronauts train for what they must do. They train to handle all the things that might go wrong and for making decisions with incomplete information.

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Four Steps to End-to-End Supply Chain Success

DuncanKlett

End-to-end supply chainSupplying products to customers is clearly important. If you can’t satisfy the needs of a prospective customer, that prospect can easily buy from someone else who can deliver what they want, when they want it. Lost sales and additional expediting costs hit your bottom line.

At one level, end-to-end supply chain success is simple: get the right stuff to the right place at the right time. So, what’s hard about that?

The answer is “lots”. Products change. Customers order at the last minute and change their orders. On-line customers expect their product to be shipped, if not delivered, on the day they place the order. Supplies don’t arrive as expected. Supply chains typically use several layers of companies, manufacturing sites, and warehouses between raw materials and customer delivery. The number of products and the number of units of those products produced are enormous: 5 million integrated circuits a day, 35,000 vehicles per day, 3,000 major appliances per day.

I recall a visit to an electronics manufacturing facility in Juarez, Mexico. Every week, amongst other products, they made about 200,000 units of a consumer electronics product. They did this despite having to manage an average of 30 production changes to that product every day! How did they do it?

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From S&OP to IBP – The discussion continues

DuncanKlett

A posting in Supply Chain Digest from a while back poses a question as to where Sales and Operations Planning (S&OP) might be going and do we need to move on to a more comprehensive concept called Integrated Business Planning (IBP)? The article references a diagram from Gartner and is shown below. Source: http://www.gartner.com/it/content/1393400/1393424/august_18_supply_chain_jbarrett.pdf (page […]

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Systems supporting key business processes are too cumbersome to support the rate of change in today’s companies.

DuncanKlett

Virtual Strategy Magazine recently reported, http://www.virtual-strategy.com/2011/05/10/supply-chain-issues-are-top-risk-us-tech-industry-according-bdo-study, on a BDO study, http://www.bdo.com/download/1371, about the risk factors most frequently cited in the 10K reports of the 100 largest publicly traded US technology companies.  The table below is a summary of those results. On its own, the list is quite interesting.  As noted in the article, the 10-K […]

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Six lessons learned from six failed software implementations.

DuncanKlett

We’ve been working with a customer on a RapidResponse implementation. The customer is delighted to witness a successful implementation after six previous failed attempts with other solutions. That’s right, six attempts – three different solutions, each tried twice. Imagine the time and money lost. Here are the lessons learned from that experience – each applicable […]

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Forget about a fifth grader, are you smarter than your car?

DuncanKlett

Does your car have Internet access? Regardless of your answer, there’s a high probability that your next new car will indeed feature Internet access. Research from electronics research firm iSuppli shows that at the end of 2009, roughly 860,000 global consumers had Internet access in their cars. However, by 2016, that number is predicted to […]

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Top two reasons users are dissatisfied with their S&OP software

DuncanKlett

Ventana Research recently re-issued a set of slides describing Sales and Operations Planning Best Practices. I would like to add my personal observations about S&OP. S&OP should be a critically important aspect of every company, certainly for any company involved with manufacturing or distributing physical product to customers.  However, as markets and technology change, the […]

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