In SCM there is an ongoing flow of elixirs (magic potion) from ‘false prophets’ claiming that they are an easy path to improved performance. A recent elixir is IBP followed by “doing central planning at the family level” to neutralize the uncertainty associated with estimating demand at the product level. This blog will illustrate the challenge in this effort since factories produce products, not families.
Arm your supply chain planners with the right software tools so they can turn your data into better business decisions.
Taking the time to perform what-if analyses on a regular basis with real and speculative events, gives planners tremendous insight into what parts of the supply chain are most sensitive to changes. As a result, planners will have a sense of what is a big deal and what is not. And when a crisis happens, they’ll feel confident in their ability to respond.
Often inventory is considered the simplest component of supply chain management that can successfully be managed separately. The purpose of this blog is to provide some observations to avoid the runaway train. We will first review the basics of CPE and then address the use of target inventory (specifically ending finished goods inventory EFGI) in CPEs.
Learn how climate action relates to supply chain management. Achieving full-scale sustainability and circularity cannot happen without end-to-end alignment, hierarchical connectivity, integration of all parts of your supply chain, performance metrics, and business processes. And this alignment needs to be part of your existing supply chain before you can take it to the next level.
A reoccurring challenge in comparing and combining diverse time series in demand forecasting is the “scale” – as it is in combining metrics. Rescaling is a powerful but simple method to help with this issue enabling demand planners to focus on similarities of shape. This blog provides an example of one method called normalization.
Learn how to combine very different metrics/KPIs towards a composite score, this is a question that comes up quite often in my conversations with customers.
In this blog, we will demonstrate the link between Finance and Supply Chain and how this understanding can help define supply chain improvements by understanding elements of the Balance Sheet and Income Statement.
Recently, we have heard about several product shortages and other issues in the supply chain. Let us try and make sense of some of these in this blog. As I live in the US, my experience is somewhat limited to what happened here.
In this blog, we point the reader to a recent article “Humachine”, which identifies the general challenge of implementing decision technology to improve SCM decision making resulting in improved organizational performance and the importance of experience in the trenches.