Posts categorized as 'Industries'

Apparel and footwear: At what point is missed sales better than excess inventory?

HarishIyer

Supply chain faux pas slows adidas sales growth

In adidas’s recent earnings call, CEO Kasper Rorsted warned that adidas would miss its 2019 growth target because its supply chain was unable to meet the huge demand for its mid-priced apparel, especially in North America.

adidas expected this to result in a one to two percentage point drop in its revenue growth, translating to a drop in revenue between €100 and €200 million.

For a company operating at almost 52 percent gross margin, that’s not an insignificant amount. 

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How vehicle customization will drive the supply chain of the future

DustinMattison

How vehicle customization will drive the supply chain of the futureI recently had the opportunity to sit down with Farhan Mirza, President of BAFF Consultants Inc., to discuss vehicle customization by original equipment manufacturer (OEM) automakers and its impact on the supply chain of the future.

Mirza notes that customization is a significant market trend and believes the entire supply chain will require transformation as the customization of vehicles becomes a mainstream approach to production.

In the interview, Mirza introduces some of the supply chain challenges which will need to be addressed to reap the profit potential.

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Retail supply chain management and the rise of fast fashion

IlyasKucukcay

Retail supply chain management and the rise of fast fashionFrom the incredible pace of turnover in style trends to the excess waste it produces, today’s fast fashion phenomenon is a controversial topic on many fronts. However, when it comes to the efficiency of today’s retail supply chain management techniques, controversy is replaced by admiration as international clothiers boast operations efficient enough to accurately anticipate demand in one of the world’s most rapidly changing industries.

While it’s too early to deem the business model for traditional fashion retailers obsolete, “on-demand” fashion has forged ahead by sourcing goods that are cheaper and faster to gather and have been quicker to leverage technology into their shopping experience, helping consumers find the best deals through online stores.

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Space: The final logistics and supply chain management frontier

IlyasKucukcay

Space: The final logistics and supply chain management frontierRecent advancements in the space launch market may indicate an increased need for logistics and supply chain management in outer space operations. Humankind’s ongoing curiosity about space has countries competing to prove they have not only the technology, but also the resources and collective knowledge to go beyond our imagination.

Accessing what’s beyond our globe has become an accepted source of socio-political promotion. It’s an indication of a society that can use advanced supply chain technology to achieve the best, and to find and harvest the undiscovered.

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What does it take to build a best-in-class supply chain?

AlexaCheater

Avaya: A supply chain management case study

Driving Avaya's digital transformationTrust in the transformation. That’s what high-tech giant Avaya had to do when the company decided to radically change up how it manages its supply chain. Going from a self-proclaimed worst-in-class supply chain to one of the best in the business was no easy feat, but the rewards were well worth the effort.

“In the beginning, it was tough,” admits Benji Green, Avaya’s Senior Director, Integrated Supply Chain Planning & Operations, in a recent article published by Supply Chain Digital. “12-hour days, hair on fire supply constraints, excess inventory, completely manual processes, imbalanced supplier terms and conditions, poor cash to cash. You name it, it was bad. It was hard to imagine becoming best-in-class at the time.”

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TrinityRail ditches operational forecasting, gains sense and respond supply chain

AlexaCheater

TrinityRail Supply chain managementSupply chain management without an operational forecast – is it possible?

Yes. Yes it is. At least if you’re one of the world’s largest providers of railcar services and products. TrinityRail, part of Trinity Industries, Inc., ditched operational forecasting in favor of a sense and respond supply chain, and the results speak for themselves.

As outlined in a recent Kinaxis case study, TrinityRail was able to realize sizable improvements in its supply chain, including nearly removing its reliance on Excel for planning and dramatically reducing the need for manual data transfers. Using supply chain management software that connected its data, processes and people into a single, harmonized system, TrinityRail reduced the risk of error, since everyone was using the same, up-to-date data set. It was even able to reduce its days of inventory on-hand (DIOH) by an average of 12 days and reduce its buyer team by more than 25% while still improving the on-time delivery (OTD) of inbound materials.

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Supply chain agility, the disillusioned data scientist, Amazon effect, and other tales from LogiPharma US 2017

Dr. MadhavDurbha

LogiPharma - Pharmaceutical supply chainI was at the recent LogiPharma US conference for the pharmaceutical supply chain leaders. However, most of the insights and the stories I took away from the event are applicable to other industries as well. Here they are:

1. Personalized medicine demands supply chain agility: During a highly engaging panel discussion on “Building a patient-centric supply chain”, Kevin Cook, VP of North America supply chain at Sandoz (a division of Novartis) talked about the unique nature of the recently approved Kymriah, CAR-T cell therapy for children and young adults with certain types of Leukemia. The therapy showed an 83% remission rate in the patient population studied! In CAR-T cell therapy, every single dose of a treatment is completely personalized, as it involves extracting the patient’s immune cells, bringing them to a production facility, genetically modifying them, transporting them back (at minus 180oF!!), and then reinfusing the patient to fight the cancer cells. So, personalized medicine is here! With it comes several logistical challenges.

While Kymriah is the ultimate example of personalized therapy, there were several attending companies that provided therapies for rare diseases affecting a few hundred to a few thousand patients across the globe. In such a high mix, low volume portfolio, decisions such as how to allocate short supply to patients in case of contamination of a manufactured batch, can be lifesaving. Brad Pawlowski of Accenture said it right during his opening remarks – “Instead of executing one supply chain a thousand times, we should get ready to execute a thousand supply chains, one at a time”.

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Supply chain pain points: Automotive

AlexaCheater

6 speed bumps on the road to automotive supply chain success

Automotive supply chainA trending move from regional to global supply chain processes is adding complexity to the automotive supply chain at an unprecedented level, driving a growing need for automation and collaboration. That’s revving up interest in realignment, consolidation and optimization of supply chain activities. The problem is, limited investment in top tier suppliers is causing constraints, and the rise in connect devices (including cars) means requirements for further innovation must extend beyond environmental footprint and safety.

Emerging markets like Brazil, Russia, India and China are further changing the automotive landscape, as automakers look to streamline distribution and better serve these areas, who combined represent 40% of the world’s population and have gross domestic product (GDP) growth far exceeding that of more fully developed countries.

Staying competitive has become harder than ever. Here are just a few of the other challenges facing the automotive industry.

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