Posts categorized as 'Supply chain collaboration'

Throw Back Thursday: How Can Companies Respond Rapidly to Demand?

MelissaClow

How Can Companies Respond Rapidly to Demand? Kinexions - Kinaxis & SupplyChainBrain Series

As I’ve mentioned in my last couple of Thursday blogs, we are starting to gear up for this year’s Kinexions (our annual training & user conference). A few weeks ago I began to reminisce about our videos from past conferences and I decided to create a blog series to share. So, on this ‘Throw Back Thursday’, I would like to share this video of Trevor Miles, Vice President of Thought Leadership, speaking about “How Can Companies Respond Rapidly to Demand?”.

In this video, hear Trevor detail industry’s major supply-chain management challenges – in particular, the difficulty of obtaining full visibility of supply and demand, and dealing with the volatility of markets.

Many companies seem wedded to their spreadsheets, even though they’re aware of the format’s shortcomings. Miles says executives have “a very legacy approach” to thinking about business processes. As a result, they’ve created “islands” of automation that do not add up to a coherent, smoothly flowing supply chain.

“People want to get away from that,” he says, “but it’s the manner in which they are trying to enable those different processes that is just lacking.”

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Elephant in the Room: Thoughts on Metrics That Matter in Semiconductor and Hard Disk Drives

CJWehlage

Metrics That Matter in Semiconductor and Hard Disk Drives

Supply Chain Insights recently published a Metrics That Matter report covering both the Semiconductor and Hard Disk Drive (HDD) industries. Despite being hit hard by the recent recession, overall the research shows that these two industries have fared well over the last decade and are positioned to continue that success.

Success, provided they monitor the 7 “elephants” in the room.

Consolidation

Notice in the Supply Chain Insights report, there are only two HDD companies. That industry has already gone through consolidations. Semiconductor is poised to consolidate, which will have huge impact on the metrics. It’s already happening with Avago/LSI, RF Micro/TriQuint, Micron/Elpida, MediaTek/MStar and Fujitsu/Panasonic. Speed to integrate the planning functions during an acquisition is critical.

Profitability

With the OEM’s driving down the price, the semiconductor/HDD companies will have to follow (or innovate new products). Lower price means lower profitability. This will begin to impact the semi/HDD ability to raise capital and innovate/expand. Cost pressures and faster time to market in the planning processes will be required.

Global pressure

Consider that the Chinese and India governments are investing in the semiconductor industry. With China already a source for semiconductor raw materials and the China/India end consumer market growing, there will be pressure to supply chips and hard drives to local China/India OEM’s first. This could create a shortage in the US/Europe OEM chain. Understanding inventory planning will take on a new dynamic.

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An Open Confession – Please Don’t Fire Me, I Promise to Learn Laugh Share and Connect on the Supply Chain Expert Community

BillDuBois

Before I start let me confess something. I am not a social media guy. I only go on Facebook to see my latest invitations to play Candy Crush and I still think a Twitter is 3 hits away from a no-hitter. However the idea of an online community seemed a bit more appealing since it was all about a group of people with a common interest sharing information on that topic. Obviously one community I pay attention to is the Supply Chain Expert community powered by Kinaxis. That leads me to the second part of my confession. I haven’t been on the community for a little while. Recently I was doing a demonstration of the Dashboard capabilities in RapidResponse. One participant asked about authoring Dashboards and I suggested they visit the Supply Chain Expert Community to check out a short video on authoring dashboards. The third part of my confession is that I had not seen the video for myself. I knew it was there but after making the recommendation I thought I should see it firsthand. The final part of my confession is that I had been taking the content of the community for granted.

The first thing I took for granted is that anyone can get to the dozens of training videos, for free, without having to be a Kinaxis customer. The video I suggested on authoring Dashboards was only one of many. If you look at the 6 menu items below, 5 are open to anyone. Only the support is closed to customers because it deals with specific customer data and use cases.

supply chain expert community header

If you look at the Content section you’ll see everything from ways to better utilize RapidRepsonse to information of key Supply Chain topics and strategies. Sorry, it’s lacking a bit on motivational quotes and links to the latest celebrity wardrobe malfunctions. Notice I’m only in as a guest and still have access to everything from blog posts, discussions and videos.

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David and Goliath: Lessons for supply chains

CarolMcIntosh

David and Goliath | supply chain perspectiveI just finished a great book called ‘David and Goliath’ by Malcolm Gladwell.

The book references the story about two men, Goliath from the Philistines and David from the Israelites in the days of the Old Testament in ancient Palestine.

As most of you know, in the battle of David and Goliath, David, a small man, the underdog, was confronted by a giant, a man so formidable it would have seemed impossible for David to even survive such a fight. But he did. He won using skill and techniques that were not typical for this fight. Goliath was weighed down by his armor. David was flexible, responsive and targeted. He knew that he couldn’t rely on his size if he wanted to win.

Having been in supply chain for so many years, I immediately made a connection.

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What the Analysts Are Saying About…A&D Supply Chains

BillDuBois

What the Supply Chain Analysts Are Saying About A and D Are you looking for some reading material to pass the time on your next flight? Even if you’re not you should check out Supply Chain Insights, Supply Chain Metrics That Matter. For the past several years, Supply Chain Insights has been delivering this research series. What caught my eye is that for each report, they do a deep dive on a specific industry and use a mix of financial data, survey research results and interactions with their clients to help get a better understanding of various industries’ supply chains.

I spread my Supply Chain wings at an Aerospace company and since Aerospace and Defense is a key vertical market for Kinaxis, the recent Supply Chain Metrics That Matter: A Focus on Aerospace & Defense report was downloaded on my laptop to read on my next flight. The research benchmarks A&D companies against other industries and looks at the top five A&D companies over the last decade. Although it didn’t give any suggestions on what to do when you find yourself in row 32, you know the one next to the washroom, it did discuss the challenges the industry is facing as well as offering up solid recommendations for areas of improvement.

From a challenges perspective, here are the highlights covered in this report.

The obvious challenge is the complexity in the A&D industry. The report uses the Boeing 747-8 International as an example. It has about 6 million components which are manufactured in 30 countries by 550 unique suppliers. Think about those design, sourcing and delivery challenges.

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Celestica recognizes suppliers with its 2013 total cost of ownership supplier awards

MelissaClow

On this Monday morning, we would like to share some good news with our readers: We had the great pleasure of being awarded a 2013 Total Cost of Ownership (TCOO) Supplier Award from Celestica, which recognizes suppliers that support Celestica’s TCOO sourcing strategy and demonstrate excellence in quality, delivery, technology, service, pricing and flexibility.Celestica Recognizes Suppliers With its 2013 Total Cost of Ownership Supplier Awards

Kinaxis is very proud to be awarded “Best IT Technology Partner” by their valued customer.

Celestica’s global network has over 3,000 suppliers making the competition tough. To be recognized as a top partner from all the other candidates is something we are incredibly proud of.

We’d like to congratulate the other winners as well! See the full list here: http://www.celestica.com/News/News.aspx?id=4774

Learn more about Celistica’s supply chain operation, by viewing past blogs and videos:

 

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Mentoring, Sponsorship and Quotas: What are their relative merits in bringing more women into supply chain management?

MelissaClow

Next week, June 5, 2014, we are excited to host a webcast on women in supply chain management.

We have a fantastic panel of accomplished female supply chain practitioners as well as industry expert Lora Cecere serving as the moderator. Register for the webcast to hear them discuss the thorny issues of mentoring, sponsorship, and quotas as mechanisms to get more women into supply chain, and the relative merits and drawbacks of these approaches.

Mentoring, Sponsorship, & Quotas: What are their relative merits in bringing more women into supply chain management?

Event Details:
Mentoring, Sponsorship, & Quotas: What are their relative merits in bringing more women into supply chain management?
Date: Thursday, June 5, 2014
Time: 2:00 PM to 3:00 PM ET

There is a consensus that since women constitute over half of the workforce but just 10% of top supply chain executive positions in Fortune Global 500 companies that something needs to be done to address this imbalance. While a great deal of attention gets placed on the ‘glass ceiling’ concept, there are a lot of women who face barriers and discrimination at mid and entry level positions too. There is a clear social responsibility need and this panel will focus on the practical advantages to having more women in supply chain including:

  • Do women and men make decisions differently? If so, why does this matter to supply chain?
  • Has supply chain become more relevant to women as a career option?
  • What does a career path look like for women in supply chain?

Reserve your spot!

P A N E L I S T S :
Verda Blythe, Director, Grainger Center for Supply Chain Management, Wisconsin School of Business
Laura Dionne, Director, Worldwide Operations Planning, TriQuint
Elisabeth Kaszas, Director, Supply Chain, Amgen Inc.
Shellie Molina, VP, Global Supply Chain, First Solar

M O D E R A T O R :
Lora Cecere, Founder, Supply Chain Insights

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Gartner Supply Chain Leaders Conference – What will be Hot?

TrevorMiles

My friend and colleague CJ Wehlage has weighed in on what he believes will happen on the Gartner Top 25.

CJ is most certainly being bold and I cannot fault his analysis beyond the usual carping that the Top 25 generates. Instead I want to focus on what seem to me to be major trends that are maybe below the surface but will inform a lot of the discussion. I go to and speak at a lot of conferences so I hear a mixture of over stated claims, future initiatives, and concerns about the state of Supply Chain Management.

Over the past 3-4 years Sales & Operations Planning (S&OP) has seen a resurgence in interest, including the many variants such as Integrated Business Planning (IBP) and SIOP. More recently there has been a lot of discussion, including from Christian Titze, Ray Barger, and others at Gartner on Visibility, usually coupled with the term end-to-end. What I have been hearing more and more recently, let us say late 2013and early 2014, is end-to-end planning. Kinaxis led the charge in this space first calling this a Control Tower in 2012-2013, but that was quite confusing because the 3PLs were already calling their capabilities Logistics Control Towers. Which got even more confusing when Visibility became more popular because how is that different from a Logistics Control Tower?

To me this is all semantics. At the core what people are trying to do, whether during execution or within operational, tactical, or strategic planning is to bring in a wider set of data so that they can investigate more alternatives during the planning phases and get early warning of things not going to plan during the execution phase. Perhaps even more importantly it is about getting different functions within the organization and even across organizations to work together to resolve issues, which is of course the essence of S&OP:

Sales and operations planning (S&OP) is an integrated business management process developed in the 1980s by Oliver Wight through which the executive/leadership team continually achieves focus, alignment and synchronization among all functions of the organization.

Substitute the words “executive/leadership” for any other group and you have what I am hearing over and over as End-to-End Visibility and End-to-End Planning. It is about lowering the walls between functions and organizations so that we can finally replace inventory with information.

But this isn’t what is in the core of the bubbling cauldron. End-to-End Planning and Visibility are driving a core need for a rethink of the entire supply chain data layer. Gartner went through this rethink a few years ago, and, as much as I hate to admit it, they were ahead of me. This is when Gartner moved from a 4 stage demand-driven maturity model to a 5 stage model in March 2013 by inserting a stage in the middle called Integrate. (Introducing the Five-Stage Demand-Driven Maturity Model for Supply Chain Leaders, 26 March 2013, Noha Tohamy, Matthew Davis)

Gartner states that what is required to achieve this stage of Integrated DDVN are

Technologies to support end-to-end supply chain processes; improved data rationalization and integration capability.
Cross-functional decision making across internal supply chain; process-focused COEs to enable the business.

I bring out these description of technology and process needs because they show the dependency of the process on the technology. They also show that my statements above are totally consistent with Gartner’s perspective.

But the elephant in the room is the technology. In fact it is really the data. 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. And it isn’t about consolidating down to a single ERP system. Even though consolidating down to one ERP instance is a step forward, with manufacturing outsourcing accelerating in many industries, heterogeneous data sources are here to stay. The question is what will the future data layer look like?

As Josh Greenbaum states in a blog published just today and titled “Security, Privacy, Big Data, and Informatica: Making Data Safe at the Point of Use

Our data warehouse legacy treats data like water, and models data management on the central utility model that delivers potable water to our communities: Centralize all the sources of water into a single water treatment plant, treat the water according to the most rigorous drinking water standard, and send it out to our homes and businesses. There it would move through a single set of pipes to the sinks, tubs, dishwashers, scrubbers, irrigation systems, and the like, where it would be used once and sent on down the drain.
But data isn’t like water in so many ways.

My bold prediction is that the data layer isn’t going to be ERP centric as it is now. And we are not going to repeat the marketplace craziness of the late 1990s. Unless cloud native ERPs such as Kenandy, which is based on SalesForce, emerge with built-in semantics to absorb meta-data from many sources and pull data in when needed. But I predict we will see a whole new breed of data providers emerge, possibly out of the wreckage that is the EAI space, that will capture this space and serve up data for analytics and business purposes.

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