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21st Century Supply Chain

1,132 posts
by Alexa Cheater

One message came through loud and clear during Gartner’s recent Supply Chain Executive Conference; you must ACT (aspire, challenge, transform) now if you want to have any hope in taking your supply chain profitably into the future. The conference’s theme of Aspire, Challenge and Transform in a Disruptive World featured prominently in the opening keynote address by two of the research firm’s VPs, Debra Hofman and Michael Burkett, who urged attendees to re-imagine their roles and ask how they will meet the future.

 

The pair talked about how disruption is the new norm. I would argue it always has been, but agree the explosion of interconnectivity and digital disruptors is causing an immediate impact on supply chain—even if the supporting technology behind it has individually been around for years. I’d also agree that to be successful it’s time to re-define the very notion of supply chain.

 

Providing an experience, not just a product

With more than $16 trillion exports moving between countries annually, the new reality isn’t just focused on getting the right product to the right people at the right time. As Hofman and Burkett put it, it’s about creating an experience-focused supply chain, which will force you as supply chain managers and leaders to gain a better understanding of your customers than ever before.

 

You have to be able to solve the problems your customers didn’t even know they had, provide personalization and offer smarter products—ones that can grow and adapt and change in unexpected ways. One example highlighted during the Gartner conference was the creation of smart toothbrushes, which when connected to a mobile app can guide you in improving your brushing technique by recognizing (via sensors) areas you may be missing. You can even share the data with your dentist for a more complete picture of your overall oral health habits.

 

But just having a connected toothbrush isn’t enough. Through APIs, other vendors can enhance the product further, like connecting your Spotify playlists so you can brush your teeth to your favorite beat. That’s how you start to build an experience.

 

Hofman and Burkett talked a lot about defining a vision for the future and aspiring to expand the definition of supply chain beyond its current confines. They focused on customer experiences and the notion of how virtual ecosystems can power them. In this context, Gartner defines ecosystems as “interdependent business networks offering innovation and productivity benefits to members through electronic interchange.”

 

Orchestrating this new virtual ecosystem requires collaboration with partners, suppliers and customers. An easy example of this type of working relationship is what’s happened with connected cars. Automakers build the product, but leverage relationships with other manufacturers to offer enhanced services and experiences such as GPS, satellite radio and even telecommunications options like Apple’s CarPlay. The end result is creating an overall driving experience—not just selling a car.

 

Another less expected case study is what’s happened in agriculture and the emergence of a new virtual farming ecosystem that’s delivering innovative solutions to a centuries old industry. Agricultural producers like Monsanto are working with equipment manufacturers like John Deere to provide real-time information about seed quality and equipment efficiency to help farmers maximize crop yields. Now imagine commodities traders got involved in this ecosystem. They could provide added data around market trends to help determine which crops will be most profitable to plant and when. Farmers would be able to maximize for financial gains and crop yields. But that only becomes a possibility if these partner relationships continue to grow, and more importantly, succeed.

 

Managing digital capabilities

Another aspect to envisioning the future is recognizing the impact digital capabilities have on the supply chain. They’re finally starting to deliver real business value. While artificial intelligence (AI) has been around for years, Hofman and Burkett say it’s only now that it’s approaching a stage that will disrupt supply chains as we know them. Advanced algorithms, machine learning, big data, deep learning, neural networks, natural language—all are coming into play in creating a dynamic and self-adapting supply chain that functions much like the human brain.

 

This reality is a lot closer than you may think. Gartner’s research shows 20% of companies in their supply chain top 25 are already piloting or in production with augment reality or AI. That’s because with the amount of data, rate of change and number of IoT devices, things have expanded beyond the ability for humans to keep pace. No matter how much of a math genius you are, you can’t make the necessary calculations and corrections fast enough.

 

P&G is experimenting with AI for exception planning, using it to prevent and resolve not only known exceptions, but new types of exceptions as well. KTM is playing with augmented reality, using it to help any service technician repair any motorcycle no matter that technician’s experience level. However getting to a point in your organization where these types of experiments are not only approved but encouraged means tackling some pretty big organizational challenges.

 

Overcoming barriers

There’s no doubt we’re entering a disruptive era, but to assess how prepared you are to boldly lead your supply chain into it, you need to ask yourself a few questions:

 

Do you have a vision for the future of your industry? Is yes, do you as a supply chain practitioner have a voice in making that a reality? According to Gartner, 40% of chief supply chain officers (CSCOs) say their CEOs still see them as just a cost center. Speak up.

 

Are you close enough to your customers? It’s not enough to identify who your customers are. You have to know them, as intimately as possible. Providing that expected exceptional customer demands it. Learn more.

 

How fast can you innovate? You need a bimodal supply chain—one that’s driving toward sustainability and innovation simultaneously to be able to innovate at a pace that can effect change. Explore possibilities.

 

Does your team have the right skills? The future is leaning toward humans and machines making decisions jointly. Work will look and feel different and offer a better mix of optimizing time and labor. You’ll need more data scientists to model based on advanced algorithms and folks who can teach and train the machines running them. Recruit talent.

 

Once you’ve conquered those challenges, it becomes about designing your future.

 

Create a digital platform

The customer appetite for experiences is there and so are the required digital capabilities. Next you’ll need a build a digital platform to manage and deliver them. Hofman and Burkett warn architecting it shouldn’t just be left up to IT. Your digital platform needs to encompass customers, ecosystems, connected devices, intelligence and IT systems. It has to lead to the creation and alignment of your company’s digital path. Unfortunately, that’s easier said than done. Gartner’s research shows 76% of digital projects aren’t aligned under a single governance.

 

Your supply chain technology model needs to align to your supply chain operating model, and that has to align with your business model. If you let IT dictate what this new digital platform will look like, you’re giving them the power to define how your supply chain will be structured in the future, because ultimately it will have to align with the rest of the digital path.

 

Once you’ve built this new digital platform, then all you need is a strong leader and the right team to take you down that digital path.

 

Build the right team

Burkett said it best, “True leaders will take us to places we didn’t know we needed to go.” You’ll need a leader who can bring both sides of the bimodal supply chain together seamlessly. You want someone with experienced hands, who knows how things traditionally operate, but with a beginner’s mind, meaning they’re open to new ideas and processes. That will give you the ability to blend best practices with new ideas.

 

“The beginner’s mind sees many possibilities, while the experienced mind only sees few.” —Shunryu Suzuki

 

You’re also going to need to diversify—not just across gender or cultural lines, but also across cognitive lines. Build teams that have a blend of analytical and emotional personalities. While fireworks may sometimes ensue, it’s through this diversity of thought, guided by unity of purpose, that you’ll see the biggest breakthroughs. Just make sure your leader has the skills to manage such an explosive team dynamic.

 

Embrace the excitement

Chaos isn’t going away anytime soon. It’s always been there in shades, but more recently seems to have burst forward again in its many splendid colors. But you can adapt to it and use it to drive supply chain excellence and growth. As Hofman and Burkett noted in their presentation, you just need to be bold!

 

The post ACT now to take your supply chain into the future appeared first on The 21st Century Supply Chain.

 

 

Originally posted by Alexa Cheater at http://blog.kinaxis.com/2017/05/act-now-take-supply-chain-future/

by Melissa Clow

This blog is part of a video interview series. Check out the video below as well as links to other supply chain practitioner and Kinaxis executive interviews.

 

The ideal center of excellence not only supports internal teams at a company but advocates for customers, says Leah McGuire, director of the Kinaxis Center of Excellence.

 

The Kinaxis COE supports project teams, consultants deploying the company’s RapidResponse tool in the field, and pre-sales teams that use demos, says McGuire. Additionally, the center is responsible for developing best practices within the tool. All of which means that center employees have to have strong technical backgrounds as well as complete familiarity with RapidResponse.

 

Advice for any company looking to establish a center of excellence? “You need to have people who are very good with change. That’s because they are change agents responsible for rolling out new processes and solutions to the organization. You want to make sure they are good communicators who are flexible and can roll with the punches as they roll out new things to the customer.”

 

And it goes without saying that you need executive sponsorship not only to set up a COE but to staff it with the right kind of personnel, McGuire says.

 

A center of excellence should be set up only after a needs assessment has been conducted to see what should be provided to the organization. Then you start small, with a staff of only a few people. How many people in the company need support from the COE? As the user group swells, the center can staff more, especially if the company expands into different regions or establishes more business units. “But you start small, establish your processes, and look at the training you’re providing,” McGuire says.

 

Customer success is a prime focus of the Kinaxis COE. “We are their advocate internally. We partner with them to develop things like success plans and road maps on how to roll out RapidResponse within their organization. We also bring their innovation back to Kinaxis so we can integrate it into the tool if necessary.”

 

Check out the other video interviews in this series:

 

The post [Video] Supply chain centers of excellence and customer success appeared first on The 21st Century Supply Chain.

 

 

Originally posted by Melissa Clow at http://blog.kinaxis.com/2017/05/video-supply-chain-centers-excellence-customer-success/

by Alexa Cheater

Sales and operations planningThe face of sales and operations planning (S&OP) is changing. Gone are the days when sequential, isolated planning and monthly meetings based on out-of-date data are sufficient to drive stability and success.

 

End-to-end initiatives now span beyond the confines of a single company’s supply chain, encompassing extended supplier and customer value networks, as well. Digitization, sparked by the rise of the Internet of Things (IoT), the expanding number of connected devices and big data, is driving a shift in consumerism. Your company needs to keep pace, or risk falling behind forever.

 

The reality is, supply and demand waits for no one — not even your executive team.

 

Running a profitable global business requires speed and agility in both strategic and
tactical planning. But transitioning to a new way of looking at S&OP means saying goodbye to scheduled decision-making, a frightening thought for many. It may seem like an impossible step. How can you let go of the security of regular meetings planned weeks in advance? Or the safety of knowing those big decisions only come around once a month?

 

We got to this state of scheduled decision-making through siloed business functions, disparate data and technology limitations. We’ll overcome it by looking toward a future where S&OP processes run continuously and collaboratively. Driving this shift in process is the notion of concurrent planning – the ability to continuously and simultaneously plan, monitor and respond to changes in a single supply chain management solution.

 

Concurrent planning bridges functional silos and connects all nodes in the supply chain, enabling cross-functional coordination and faster, more effective decision-making. It allows you and your peers to seamlessly scenario plan across multiple time horizons, providing improved performance and profitability. It also helps solve the planning horizon challenges many organizations now face. Namely, bridging activities for short-term planning (low impact, high frequency) with long-term planning (high impact, low frequency), and accounting for high impact, high frequency events.

 

The future of S&OP is collaborative decision-making and perpetual planning. This revolutionized way of looking at planning concurrently could shift business processes and supporting organizational structures. Frequency no longer becomes a limiting factor, and the resulting faster scenario analysis and simulation will enable efficiency and cost savings.

 

But getting to a state of concurrent planning requires several foundational capabilities within your supply chain system.

 

What-if scenarios

Traditional simulations take time and often happen in silos, ultimately slowing down the time it takes to analyze data, model options, make a final decision and get the necessary buy in from other functional business areas.

 

Having the ability for anyone to run a simulation using any data at any time, and then share the results with others in the supply chain means a more effective way to connect data, process and people within a single system. It creates the ability to ask the right questions of the data and provides a record of the answer, and the decisions that led up to it.

 

Collaboration

Gone are the days when planning for a single function happens in isolation. Collaboratively making decisions allows faster, more efficient understanding of the end-to-end impacts of potential choices.

 

Collaborative decision-making is ushering in an era where informed trade-offs are being made. Instead of working toward individual objectives, everyone is working toward the same set of corporate-wide metrics.

 

Record keeping

In many cases, data manipulation, what-if scenario creation and collaborative discussions are taking place across multiple systems. And with the time it takes to circulate all the relevant information to the decision makers, it’s likely you’re only capturing the end results, not the debate and trade-offs leading up to it.

 

In order to learn and grow from past mistakes, we need to understand why we made a particular decision in the first place. That means capturing the context as well as the outcome—providing a better picture of cause and effect.

 

The rapidly increasing pace of business demands changes to current S&OP practices, and advanced technology is making it possible through concurrent planning. It’s time to step away from siloed, scheduled decision-making and move toward collaboration, and parallel planning.

 

Learn more about the future of S&OP and how to get there with our eBook, Powering the future of S&OP: 3 capabilities to fuel your journey. Download it now.

 

The post Goodbye scheduled decision-making, hello concurrent planning appeared first on The 21st Century Supply Chain.

 

 

Originally posted by Alexa Cheater at http://blog.kinaxis.com/2017/05/goodbye-scheduled-decision-making-hello-concurrent-planning/

by Melissa Clow

This blog is part of a video interview series. Check out the video below as well as links to other supply chain practitioner and Kinaxis executive interviews.

 

The task of linking sales and operations planning systems of any company with truly global reach is difficult enough to begin with, says Lindsey Kathmann, supply chain analyst at TE Connectivity. But complexity is heightened when the enterprise is structured into separate business units, some with their own spinoffs.

 

That’s the situation faced by TE Connectivity, which specializes in designing sensors for several industries. It’s divided into Transportation Solutions, which focuses on cars, planes and trains; Aerospace, Defense & Marine; and Industrial, which specializes in consumer products, such as cell phones.

 

Kathmann works in the commercial transportation department, which is a relatively new spinoff of the Transportation Solutions business unit.

 

Her group is benefiting from its relationship with Kinaxis. “We try to have an integrated sales and operations planning process,” she says. “Sales gives us data on products that already exist, product management gives us information on new product launches and things they see in the pipeline in the future. That data and those forecasts are given to the demand team and they put it into RapidResponse and give it over to the supply team.”

 

“We’re able to use that data to do PFEP [plan for every part] and EPEI [every part every interval], take that data and make sure from a product family level that we have enough capacity going forward.”

 

If there is insufficient capacity, the product management team is called in to determine what added equipment might be called for, Kathmann says.

 

Kinaxis has brought a needed efficiency to TE, she says. “I’ve been in situations before RapidResponse [was implemented] where teams were doing things by hand, trying to pull data out of the legacy systems and putting it in Excel, and members of the materials team spent hours on something they could just pull straight out of RapidResponse. It’s more accurate and you get better data to all the teams, from forecasting to finance.”

 

Check out the other video interviews in this series:

 

The post [Video] TE Connectivity – A continuous sales and operations planning process appeared first on The 21st Century Supply Chain.

 

 

Originally posted by Melissa Clow at http://blog.kinaxis.com/2017/05/video-te-connectivity-continuous-sales-operations-planning-process/

by Alexa Cheater

5 hurdles the semiconductor industry needs to jump over to find success

Semiconductor supply chainBuilding your business on someone else’s supply chain blueprint may not be the best way to find success. What works for one company may not work for another – especially if they’re in varying industries, geographies or are different sized enterprises. As I noted in my earlier blogs in this series on consumer electronics and life sciences, each industry has unique supply chain pain points that need to be overcome to improve efficiency and profitability.

 

When it comes to the semiconductor industry, one of their biggest supply chain hurdles is that the speed of new technology introduction is 2-3X faster than the research and development (R&D) timeline. It’s a highly capitalized industry thanks to the high cost of fabrication centers (Fabs). It’s transforming from design and manufacturing companies into design and product companies. These new fab-less companies are working with foundries to manufacture wafers, instead of fabrication centers.

 

The cyclical nature of the semiconductor space requires impact mitigation through product expansion (portfolio diversification) and rapidly scaling capacities. The result is an increase in mergers and acquisitions (M&As) to stay competitive, leading to disparate processes, systems and tools.

 

Here are a few other challenges the semiconductor supply chain has to face.

 

Front-end (FE) manufacturing output requires added manufacturing steps

FE outputs like wafers or dies, require additional manufacturing steps like assembly and testing and a blended model. This drives complexity across the supply chain, making efficient capacity planning extra difficult.

 

Solution: Allocate capacity across multiple sites, business segments and/or products to minimize the impact of site-specific constraints. You’ll also need to have the ability to compare multiple capacity allocation scenarios to determine the best option for back-end (BE) capacity allocation. This minimizes customer impact and maximizes profitability.

 

FE cycle times are much faster than BE cycle times

FE cycle times are typically 6 to 8 weeks, while BE cycle times are only 1 to 2 weeks. That means postponing inventory at various manufacturing stages, which requires additional planning.

 

Solution: Inventory postponement planning and late-stage differentiation for BE are critical to managing working capital and to provide improved capacity flexibility. It’s best to use an analytics-based strategic policy for this to mitigate forecast error, factory excursions and the impact of natural disasters.

 

Limited end-to-end supply chain visibility and planning

Multiple direct and indirect materials required for manufacturing, and unconnected internal and contractual manufacturing sites and distributions centers, makes supply chain visibility difficult, learning to excess inventory growth and poor customer service.

 

Solution: Integrate all disparate systems for easier planning and greater visibility. This will drive greater comprehension of multi-tiered sourcing and manufacturing constraints, enabling integrated planning, scenario analysis and better, faster decision-making.

 

Customer-specific requirements

The same product often has different material, site, quality, manufacturing, shipment size, etc. requirements, all based on each customer’s individual demands. There’s also rarely a formal forecast applied to samples requested by the customer, or the cost and capacity requirements associated with them.

 

Solution: Using attribute-based capacity planning, tracking customer attributes for multiple customers in multiple product tiers is easier. Without it, human glue is the only thing holding things together – making the process error-prone and highly inefficient. And don’t forget to add samples to your planning for early stage SKUs and product families. This will provide a clearer picture of capacity and the cost of doing business.

 

Data latency

Power, performance and function-based binning of wafer-die can result in multiple co-products from the same wafer. Different functions, each using different planning parameters, causes data latency issues because that data is housed in multiple, disparate systems.

 

Solution: You should monitor and update planning parameters in a single system through scheduling, which will enable you to see the most recent official parameters available and work from one single source of data truth. Early visibility into project planning parameters gives insight into potential co-products to drive early demand shaping actions. That way you can ensure co-products are consumed and profitability is increased.

 

These are just a few of the specific semiconductor supply chain pain points. What other challenges are you facing in your supply chain? Let us know in the comments section below.

 

And don’t forget to check out the other industries featured in this blog series:

 

  • Consumer electronics
  • Life sciences

Stay tuned for the next instalment when we take an in-depth look at the supply chain challenges the automotive industry faces.

 

The post Supply chain pain points: Semiconductors appeared first on The 21st Century Supply Chain.

 

 

Originally posted by Alexa Cheater at http://blog.kinaxis.com/2017/05/supply-chain-pain-points-semiconductors/

by Alexa Cheater

8 life sciences-specific challenges and how to overcome them

Life sciences supply chain

As I mentioned in the first blog of this supply chain pain points series, working in supply chain is tough business. Every company’s supply chain is unique, with its own set of challenges and solutions. But when it comes to life sciences supply chains, things just seem to be a whole lot more complicated.

 

Regulations, expirations and generic and brand name labels add a certain complexity to the mix not always seen in other industries. Branded pharmaceuticals tend to be high margin products, while generics are lower margin with a large volume of new product introductions (NPIs). With an extremely competitive landscape, mergers and acquisitions are common, leading to a multitude of disparate enterprise resource planning (ERP) systems, wreaking havoc on end-to-end supply chain visibility. Here are a few more obstacles those of you working supply chain in life sciences have to contend with.

 

Lack of robust sales and operations planning (S&OP) tools

Traditional S&OP tools don’t always account for the specific needs of the life sciences supply chain. S&OP in this space requires volume level planning at multiple hierarchies and provide mix level detail including material and capacity constraints at the site and SKU level.

 

Solution: Implement an S&OP tool that provides easy balancing of supply and demand at multiple levels of aggregation. Planning functionality should include multiple time dimensions with real-time analysis, and give you the ability for robust scenario simulation to evaluate options.

 

Tenders, trade promotions and new product introductions

It can be hard to manage these types of demands considering they often don’t exist in legacy ERPs. Given approximately 80% of profit from new products comes during launch, this is a crippling obstacle for many.

 

Solution: Find a way to get that critical data into your ERPs. Supply chain management software exists providing just such a capability. You’ll also need the ability to model the probability of demand for tenders and trade promotions, including probabilities and priority-assignment. Modelling NPIs as pseudo parts (with their own pseudo demand and bill structures) provides much-needed visibility and analysis to projected fulfillment, revenue, capacity and material availability.

 

You can only satisfy demands with supplies meeting specific characteristics

Expiry dates, stop-sell dates and batch numbers – you have to account for all of these special attributes when looking at your supply. You may think you’re able to fulfill demand, only to discover you don’t have enough products meeting the expiry date requirements to actually deliver. That’s not a great way to improve customer satisfaction levels, and can lead to greater amounts of excess or obsolete inventory.

 

Solution: Enable special supply and demand allotment based on these unique parameters and make sure you factor them in when calculating available demand. It’s even better if your technology solution can handle all this automatically, including providing projected excess.

 

Expiry dates are associated with specific SKUs

With thousands of SKUs all with individual SKU and batch expiry dates, the odds of those items expiring on warehouse shelves becomes a real concern. It directly impacts availability and inventory excess. Not to mention what it does to your inventory risk and bottom line.

 

Solution: Calculate projected expiry at multiple levels when planning. And don’t forget to consider inherited expiry from lower level supplies. When a batch of products does expire, make sure to stop considering the quantity as viable and plan for new supply to meet future demand. Your best plan of action is to monitor product expiry by country and affiliate-specific criteria related to allowable shelf life, and set up a system of alerts before expected expiry dates, so you can take action before the item is no longer usable.

 

Campaign planning

Multiple production line setups often result in poor equipment utilization and way more inventory than you need at any point in time. It’s inefficient, costly and not a great way to run your operations if you want to stay profitable for long.

 

Solution: Make sure you connect production of the same material when executing through batches. This will help reduce the number of setups and make your production line more effective in the long run.

 

Transition dates are assigned for SKUs

That means if regulatory approvals are delayed or expedited, the change in dates affects supply and demand.

 

Solution: You should model transition dates to work to determine what materials you need to produce to account for the change (including lower level materials).

 

Increased outside pressures

As with any business, there are often outside pressures that have a big impact inside your operations, and those working in life sciences aren’t exempt. Things like shifts in regulations and changes in approvals are beyond your control. As are patent cliffs, which can have a monumental effect on your revenue streams as competitors get license to sell the same products.

 

Solution: Make sure you thoroughly evaluate supply chain risk and have all available information before making any decisions. Simulate scenarios and evaluate impacts across the entire supply chain, but ensure you compare the results against key performance indicators so you know exactly where you’ll need to make any tradeoffs.

 

Lot-for-lot planning

It can be difficult to manage lot traceability across all levels of your supply chain, including aligning supply to upstream work orders. Without that alignment, you risk not having full visibility into who supplied what and where it ended up. This becomes vital for accountability and in case of recall.

 

Solution: Connecting your end-to-end supply chain within a single system will help you alleviate this issue. You’ll be able to plan packaging work orders split from different bulk locations based on quota arrangements and create work orders from bulk locations based on products’ batch sizes. That way you’ll always have clear visibility into your supply chain operations.

 

These are just a few of the life sciences supply chain pain points. What other supply chain challenges do those of you working in this space have to overcome? Let us know in the comments area below. Don’t forget to check out the first blog in this series on consumer electronics supply chain pain points and come back to see what other industries we profile.

 

The post Supply chain pain points: Life sciences appeared first on The 21st Century Supply Chain.

 

 

Originally posted by Alexa Cheater at http://blog.kinaxis.com/2017/05/supply-chain-pain-points-life-sciences/

by Melissa Clow

This blog is part of a video interview series. Check out the video below as well as links to other supply chain practitioner and Kinaxis executive interviews.

 

There’s no doubt that the digital supply chain is of great benefit to a company, but we need to look at the world of social media to learn how to maximize use of digitalization, says Trevor Miles, vice president of thought leadership at Kinaxis.

 

Many companies today need to lift a lot of data from multiple data systems if they are to create visibility across their entire supply chain. But the way they go about it is less than optimal, says Miles. “It’s my firm belief that we are only going to make maximum use of digitalization if we start differently.

 

We need to look at the younger people and understand how they use digital media in their everyday lives. We need to learn from them as a way of working, rather than imposing on them things that we’ve been doing for the last 30 years.”

 

In fact, Miles believes executives should rethink how they approach use of a number of technologies and processes. Sales and operations planning, for instance, is merely a “Band-Aid,” in his view. In the past, the commercial and operations sides often had no way to collaborate or even communicate effectively. S&OP was thought to be the answer, but Miles says it’s little more than a “coordination function.”

 

RapidResponse enhances traditional sales and operations planning, he says, because it gives continuous S&OP. “You can ask it what the current state of things is, you can understand what the mismatches are, and you can bring a group together inside RapidResponse to actually correct things.”
He acknowledges that many decisions made in “classical S&OP” still need to be made. “But how quickly and repeatedly can you make those? With our tool, you can make them continuously. That’s the key paradigm shift.”

 

Paraphrasing Dwight Eisenhower, Miles says, ‘Planning is everything, the plan is nothing; meaning, the moment you walk out of the room there is a disconnect between what you planned and what you are able to do. RapidResponse enables you to pull that information up at any time, understand the disconnect and realign the entire supply chain. That’s where I see S&OP going in the future.”

 

Miles says that traditional functional silos continue to inform much of supply chain practice today. That has to change because the digital supply chain will never be fully realized until people achieve true cross-functional transparency. “This will take time,” he says, “but digitalization is actually breaking those boundaries and bringing visibility across the supply chain.”

 

Check out the other video interviews in this series:

 

The post [Video] Adapting supply chains to the digital phase of business appeared first on The 21st Century Supply Chain.

 

 

Originally posted by Melissa Clow at http://blog.kinaxis.com/2017/05/video-adapting-supply-chains-digital-phase-business/

by Alexa Cheater

Consumer Electronic4 problems facing consumer electronics and what to do about them

Let’s face it. Working in supply chain is no walk in the park. Unless of course you’re walking barefoot and the ground is covered in razor-sharp pebbles that randomly change location. Then maybe it’d be comparable.

 

The fact is, while supply chain is big business for most companies, it also comes with a whole new set of challenges unique to its many processes, data requirements and functions. But depending on which industry you work in, your specific set of supply chain pain points could vary greatly. This blog series takes an in-depth look at some of the specific supply chain obstacles certain industries face, and how to potentially overcome them.

 

First up is consumer electronics.

 

Consumer electronics supply chain pain points

Relatively short product lifecycles (typically 6-9 months) with multiple feature changes throughout

 

This creates an atmosphere full of risk. With so many changes happening over the course of the lifecycle, you’re likely carrying extra inventory to make sure you have enough stock on hand to cover any part substitutions or adjustments. That means higher carrying costs and a greater risk to your bottom line if the product ends up as slow moving, excess or obsolete inventory.

 

Solution: Create multiple supply chain policies that reflect the changing lifecycle demand patterns, preferably using attribute-based planning. Adding in the ability for multiple what-if scenario simulation means you’ll be able to compare and contrast plans based on price curves, customer segments and/or new markets to see which produces the best result at any given time.

 

Multiple partners across a global supply chain network

 

With so many partners involved on a product’s journey from raw materials to delivered finished goods, you’re likely facing a situation with multiple and latent data sets. That’s not exactly the ideal for creating strong visibility across your supply chain. The result of this lack of visibility means you’re constantly re-working plans as updated numbers trickle in from your partners and suppliers. Plus, it leaves you blind to unexpected changes or unanticipated risks like a partner failing to deliver components on time. You won’t know the problem is coming until its right on top of you and already too late to compensate for it.

 

Solution: You have to plan as a single, harmonious end-to-end network. That means capturing all master and transactional data in one system – including details from your partners – and working from that single source of truth. This dramatically reduces the time it takes to gather current data and search for any exceptions or issues that need your attention. Make sure you can aggregate down to the SKU level to reduce production variability, fulfillment and transportation costs. You’ll also want to set control limits on things like international standards, customs requirements and other regulated compliances.

 

Integration speed for mergers and acquisitions

 

The longer it takes to integrate data from a newly acquired company, the slower you’ll see the payoff. As mergers and acquisitions often play a vital role in company expansion in the consumer electronics industry, it’s also likely you’re looking at a host of disparate enterprise resource planning (ERP) systems – and as most people who’ve worked in supply chain will agree, they don’t typically play well together.

 

Solution: Be ERP-agnostic. The faster you can merge the data, analytics and planning logic of the new ERP system into your planning solution, the faster you’ll see the payoff of your investment. Ideally your planning solution can pull data and model the behavior of multiple ERP systems.  There are solutions out there that can lay overtop of your existing multiple ERP systems and automatically pull all the data in to a nice, clean package where you can manipulate it, analyze it and generally not have to deal with the headache of reconciling it all in spreadsheets. That will eliminate multiple data sets, greatly reducing your inventory and cost risks. Why? Because you’ll actually be planning with a complete, current set of data.

 

Balancing daily decisions happens at a snail’s pace

 

Every day is a new balancing act as you work diligently to find the right harmony between costs, revenue and service. But aligning them all means collaborating with co-workers, and sadly coming to a consensus on where tradeoffs should happen isn’t always their top priority – or even their twentieth. It becomes a battle to get everyone on board, after all, someone’s likely conceding in an area they wish they weren’t. That slows down the entire decision-making process and weighs you down when trying to respond to changes in supply, demand or capacity.

 

Solution: Bring in lots of baked goods – particularly ones involving chocolate. And when that doesn’t work, get down to brass tacks and show them how each of the prospective tradeoffs stacks up against your company’s key performance indicators. That way they’ll clearly see a decision’s impact on revenue, profitability, service, margin and costs. With the numbers clearly in front of them, they’ll have an easier time deciding on the right course of action, and you’ll be able to implement changes faster. Things will go even quicker if you have a supply chain solution in place that allows for real-time cross-functional collaboration right within the platform. No more clicking the refresh button in your email inbox to see if they’ve responded yet.

 

These are just a few of the specific consumer electronics supply chain pain points. What other challenges are you facing in your supply chain? Let us know in the comments section below.

 

And don’t forget to check back for the next blog in the supply chain pain points series.

 

The post Supply chain pain points: Consumer electronics appeared first on The 21st Century Supply Chain.

 

 

Originally posted by Alexa Cheater at http://blog.kinaxis.com/2017/05/supply-chain-pain-points-consumer-electronics/

by Melissa Clow

Gartner S&OP SOD Magic QuadrantIt is with great pride that we announce Kinaxis® has been placed in the Leaders quadrant of the recently published Gartner Magic Quadrant for Sales and Operations Planning Systems of Differentiation.

 

Gartner defines a sales and operations planning (S&OP) System of Differentiation (SOD) as a software solution that supports a Stage 4 or higher maturity S&OP process. According to the report, “Leaders have a strong vision for their S&OP SOD capabilities. They recognize the role they will need to play in enabling the move toward multienterprise horizontal planning allied with vertical integration that links strategy to operations and execution. They are looking at developing analytics to support probability-focused end-to-end predictive and prescriptive analytics to support profitability trade-offs and supply chain design and configuration capability.”1

 

Because of our unique ability to provide concurrent planning, Kinaxis RapidResponse® is an ideal solution to take companies through the various stages of S&OP maturity. We believe the next revolution in supply chain performance can only be achieved by realizing the speed of cross-functional decision making. As today’s press release indicated, our goal is to advance our customers’ S&OP processes from early stages through to Stage 4, and beyond, over time by taking advantage of all full capabilities in our single product.

 

Ultimately, with a sales and operations planning system of differentiation, we believe companies should achieve:

 

  • tighter integration between supply chain and the commercial organization
  • tight alignment of S&OE meetings with the midterm plan generated in the monthly S&OP meetings in order to support profitability-based short-term trade-offs
  • consistent metrics considering the internal and external trade-offs required across the extended supply chain
  • successful management of the trade-offs in the midterm planning horizon within the S&OP process, covering the three to 12 month terms and moving beyond the current quarter
  • synchronization of the cycle of the S&OP process and the time horizon with the annual business plan and budget cycle

Managing S&OP from a single application enables companies to make better tradeoffs across competing metrics quickly and to make value-based decisions for the enterprise collaboratively – both at the time of plan development and when the S&OP guidance is violated due to unplanned events.

 

Find out more about our  S&OP solution and the outcomes Kinaxis customers have realized with RapidResponse. You can view the 2017 Gartner Magic Quadrant for Sales and Operations Planning Systems of Differentiation report in its entirety here.

 

1 Payne, T., Magic Quadrant for Sales and Operations Planning Systems of Differentiation, Gartner Inc., May 1, 2017

 

Disclaimer: Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

 

The post Kinaxis Positioned in the Leaders Quadrant of Gartner’s Magic Quadrant for Sales and Operations Planning System of Differentiation appeared first on The 21st Century Supply Chain.

 

 

Originally posted by Melissa Clow at http://blog.kinaxis.com/2017/05/kinaxis-positioned-leaders-quadrant-gartners-magic-quadrant-sales-operations-planning-system-differentiation/

by Bill DuBois

Global capacity managementRecently I was watching a video interview with David Thomas, the Director of Global Capacity Planning for Ford Motor Company. Among other things, he’s been leading the charge at Ford to deliver a global capacity management solution. He describes the process as a jigsaw puzzle. The challenge with getting a global view as he puts it, is if the pieces “don’t fit together, you don’t see the right picture.”

 

Ford’s challenges to global capacity management

In the interview, David describes the challenges facing Ford in fitting the pieces together. One of which is its extensive legacy. Ford has been around for 100 years and the five main regions of the company (North and South America, Asia, Europe and Middle/Eastern Africa) grew up individually. There wasn’t a need to move data and information between the regions because they had different products, teams and organizations.

 

Over the past few decades, the auto industry, like most other industries, experienced unprecedented changes that drove a need to transform capacity management from a regional to a global view. The 2008 downturn hit suppliers extremely hard, putting some out of business. But in 2010, an upturn in demand in emerging regions like Brazil, India and China meant capacity required varied significantly by region. But that demand didn’t match what companies had available in those areas. Thus, a global view of capacity management was required to combat these newly emerged supply chain constraints.

 

The other challenge David highlighted for global capacity managers was the difficulty in collaborating without the regions being connected. Capacity planning sits between demand (including product development), sales and marketing, and supply. For David’s first 10 years, he didn’t have a single phone call with anyone in any other region. Now there’s a constant need to collaborate across regions during the sales and operations planning (S&OP) cycle and on longer-range capacity planning conversations like battery technologies and autonomous vehicles. The supply chain is more interdependent than ever. Components sourced in one region are being consumed by demands in other regions. “Regional issues cause global problems and global solutions have regional implications,” explains David.

 

Misalignments with demand and /or supply are costly. If you’re building products customers don’t want, you have money tied up in inventory and marketing programs, and have to work harder to try to move vehicles. David describes inventory as “… dead money, it’s not making money, it’s costing money.” Supply constraints mean your customers aren’t getting the product they want, when they want it. Minimizing inventory and holding costs and maximizing revenue is a critical competitive differentiator. What’s needed is the most efficient supply chain with the lowest inventory possible so you can move the most product possible.

 

The 5 parts to global capacity planning

It sounds easy, but as David points out, it’s a journey to make it happen. “Connecting data, processes and people is the critical enabler.” Drilling down on the need to connect them there are five puzzle pieces needed to see the complete global capacity picture:

 

  1. System Integration: Data will typically reside in multiple enterprise resource planning (ERP) systems and various point solutions. You must be able to seamlessly incorporate all this information as well as close the loop back to the execution systems based on the decisions made during planning cycles.
  2. Data Integrity: By integrating all data onto one platform, people will have confidence in the data integrity of the global capacity management system. There is only one version of the data and all involved will see any updates to that.
  3. Scalability: The scale of the data and computing power required to model a global multi-tier supply chain and explode demand and supply across the integrated supply chain is enormous, but the ability to scale is essential. An approximate model is not enough.
  4. Configurability: No two global manufacturers have the same requirements and processes. The platform must be configurable to support regional and global processes. This includes analytics, planning rules, views and workflow. This configurability will also enable processes to evolve over time without customizations. The platform should also support the creation of extensions to automate, streamline and integrate with existing systems and processes.
  5. Simplicity: Finally, it needs to be relatively easy to deploy and easy to use. You can’t have ERP-type deployment times with only system experts able to turn it on. It must be deployed in months and be utilized by all levels of planning to provide the insights for timely planning and decision support.

Capabilities needed to drive success

With these pieces of the global capacity planning puzzle in place, you’ll still need certain capabilities to drive your way toward success. These include:

 

  • On-demand planning will let you net and explode through multiple tiers of the supply chain in minutes or even seconds, not hours and days.
  • Rapid simulations will allow you to model plan alternatives and “what-if analysis” to understand the impact of proposed changes or unexpected events and capacity disruptions.
  • Alerts that notify you when plans aren’t going as expected. You’ll not only be aware something has changed, but can immediately understand the impact of the change. This ensures the highest priority risks are actioned first.
  • End-to-end supply chain visibility allows all supply chain executives to view current plans, performance to plans, financial implications and take timely action to course correct as required.
  • Seamless collaboration across global and regional planning allows all functions to work together and respond quickly during planning cycles and in course correct mode.

David stresses the value of an integrated global capacity management platform to help you get what every company wants – to get the right product to the right people at the right time, more effectively and efficiently than your competitors. Have a listen to David’s interview here and let us know what you think.

 

For more insights into global capacity management check out this white paper.

 

The post 5 pieces to the global capacity management puzzle appeared first on The 21st Century Supply Chain.

 

 

Originally posted by Bill DuBois at http://blog.kinaxis.com/2017/04/5-pieces-global-capacity-management-puzzle/

by Melissa Clow

This blog is part of a video interview series. Check out the video below as well as links to other supply chain practitioner and Kinaxis executive interviews.

 

Merging two companies is seldom easy, but it’s even more difficult when their supply chains are highly dissimilar, says Jim Calarese, director of supply chain systems at Sanofi Genzyme.

 

The pharmaceutical company is the result of a takeover by Sanofi in 2001. The parent company’s supply chain was “plant-centric,” Calarese says. By contrast, Genzyme’s was completely end-to-end in nature. “Theirs was easier than ours.”

 

No pharmaceutical supply chain is without its challenges. Typically, supply chains are extended, lead times are long and a thicket of government regulations combine to present some steep challenges. Genzyme had diligently worked to have a total view of its supply chain as it developed and marketed drugs for rare diseases, multiple sclerosis, and oncology and immunology markets.

 

Following the acquisition, however, Genzyme had to acclimate to Sanofi’s processes and take on production of some products that originally had been developed by Sanofi. “As we gained more responsibilities, we had to integrate new products into our end-to-end view of things, we had to bring them into our sales and operations process, and to do that we use the RapidResponse tool from Kinaxis,” says Calarese.

 

Getting S&OP right is crucial, since planning in the pharmaceutical world can extend several years out. “It takes a long time to get volumes and capacity up in this business,” he says.

 

Spreadsheets were the go-to data gathering tool before implementation of RapidResponse. Visibility, hardly optimal with Excel, was the first thing gained with Kinaxis. “We started improving our forecast accuracy, which has driven a more stable finished goods plan.” Among other things, increased visibility means Sanofi Genzyme can notify partners if product delays are expected. “We can inform people ahead of time.”

 

The pharmaceutical industry has a justly-deserved reputation for moving slowly. Noting that, Calarese says RapidResponse has been more evolutionary than revolutionary for supply chain planning. “Revolution, to me, is violent and quick. Our industry often is slow to move. Pharmaceuticals take a long time to develop and approve. The process piece has lagged the technology piece of it.”

 

Having said that, Calarese says Sanofi Genzyme has mapped its future several years out. Pilots are in place to enhance attribute planning among other areas. “The future looks bright.”

 

Check out the other video interviews in this series:

 

The post [Video] Sanofi Genzyme trends in pharmaceutical supply chains appeared first on The 21st Century Supply Chain.

 

Powering the future of S&OP - Kinaxis

 

Originally posted by Melissa Clow at http://blog.kinaxis.com/2017/04/video-sanofi-genzyme-trends-pharmaceutical-supply-chains/

by Alexa Cheater

Amazon supply chain managementHow to overcome the Amazon effect

When it comes to supply chain excellence, particularly in the retail sector, there is one behemoth dominating the landscape: Amazon. Amazon supply chain management is driving innovation and change at a pace that’s putting the pressure on other businesses to find a way to keep up, or fold.

 

The online retailer’s most recent patent focuses on drone technology, and would involve drones delivering packages with parachutes. It’s just the latest in a string of patents that span the gamut from smart stores to flying warehouses. Amazon is even entering the transportation space, signing agreements with the Air Transport Services Group and the Chinese government to enter into the freight cargo business – effectively cutting out the middleman.

 

It has leased 20 Boeing 767 aircraft to shuttle goods around the US, and helped ship at least 150 cargo containers from China since October 2016. It’s all part of the global expansion of ‘Fulfillment by Amazon’, which provides storage, packing and shipping to small independent merchants selling products on Amazon’s website.

 

As Jeff McCandless notes on a recent Multichannel Merchant blog, combating the Amazon effect requires technology and collaboration. You need to build a real-time, data-driven, cloud-based automation network to compete. That means fostering supply chain capabilities focused on just such an outcome.

 

Failure to innovate in the retail supply chain arena is already having negative financial repercussions for brick and mortar stores, especially when it comes to apparel. Amazon makes up about 7% of the US apparel market, and according to reports, that figure could increase to 19% by 2020. They’ve been called a competitor in every space.

 

And as other companies invest billions to keep up, the overwhelming majority of them still haven’t figured out how to remain profitable. They’re plagued by high delivery costs, rising return rates and shifting labor requirements, struggling to find the delicate balance between meeting customer demand and protecting margins.

 

This customer-centric drive is streamlining supply execution processes like manufacturing and delivery, but when it comes to supply chain planning, there’s still room to push the limits even further. It’s great to offer same day shipping, but what happens if there’s a catastrophic level disruption at the origin source? Things like natural disasters, unexpected supplier shutdowns or even labor disputes within your own four walls – all can lead to delays and cancelled orders. Your supply chain needs to respond and course correct as fast as possible.

 

You’ll need to revolutionize your supply chain planning, implementing processes like concurrent planning and connecting your data, processes and people. Creating a consolidated view of your entire supply chain will enable you to plan expected performance, monitor progress and respond to disconnects when reality hits. Find a way to know sooner and act faster.

 

Functionality like rapid what-if scenario simulations with versioning, means you’ll be able to get snapshots of the past, present and possible future state of your supply chain. And you’ll definitely need to breakdown silos and promote cross-functional collaboration.

 

Amazon has pushed the retail supply chain to its limit, and it appears the online giant has no plans to stop anytime soon. Those left in its wake have no choice but to embrace change, innovation and find new ways to thrive.

 

Has the Amazon effect infiltrated your industry vertical? Let us know in the comments section.

 

The post Amazon supply chain management pushes retail to the limit appeared first on The 21st Century Supply Chain.

 

Powering the future of S&OP - Kinaxis

 

Originally posted by Alexa Cheater at http://blog.kinaxis.com/2017/04/amazon-supply-chain-management-pushes-retail-limit/

by Alexa Cheater

Amazon supply chain managementHow to overcome the Amazon effect

When it comes to supply chain excellence, particularly in the retail sector, there is one behemoth dominating the landscape. Amazon is driving innovation and change at a pace that’s putting the pressure on other businesses to find a way to keep up, or fold.

 

The online retailer’s most recent patent focuses on drone technology, and would involve drones delivering packages with parachutes. It’s just the latest in a string of patents that span the gamut from smart stores to flying warehouses. Amazon is even entering the transportation space, signing agreements with the Air Transport Services Group and the Chinese government to enter into the freight cargo business – effectively cutting out the middleman.

 

It has leased 20 Boeing 767 aircraft to shuttle goods around the US, and helped ship at least 150 cargo containers from China since October 2016. It’s all part of the global expansion of ‘Fulfillment by Amazon’, which provides storage, packing and shipping to small independent merchants selling products on Amazon’s website.

 

As Jeff McCandless notes on a recent Multichannel Merchant blog, combating the Amazon effect requires technology and collaboration. You need to build a real-time, data-driven, cloud-based automation network to compete. That means fostering supply chain capabilities focused on just such an outcome.

 

Failure to innovate in the retail supply chain arena is already having negative financial repercussions for brick and mortar stores, especially when it comes to apparel. Amazon makes up about 7% of the US apparel market, and according to reports, that figure could increase to 19% by 2020. They’ve been called a competitor in every space.

 

And as other companies invest billions to keep up, the overwhelming majority of them still haven’t figured out how to remain profitable. They’re plagued by high delivery costs, rising return rates and shifting labor requirements, struggling to find the delicate balance between meeting customer demand and protecting margins.

 

This customer-centric drive is streamlining supply execution processes like manufacturing and delivery, but when it comes to supply chain planning, there’s still room to push the limits even further. It’s great to offer same day shipping, but what happens if there’s a catastrophic level disruption at the origin source? Things like natural disasters, unexpected supplier shutdowns or even labor disputes within your own four walls – all can lead to delays and cancelled orders. Your supply chain needs to respond and course correct as fast as possible.

 

You’ll need to revolutionize your supply chain planning, implementing processes like concurrent planning and connecting your data, processes and people. Creating a consolidated view of your entire supply chain will enable you to plan expected performance, monitor progress and respond to disconnects when reality hits. Find a way to know sooner and act faster.

 

Functionality like rapid what-if scenario simulations with versioning, means you’ll be able to get snapshots of the past, present and possible future state of your supply chain. And you’ll definitely need to breakdown silos and promote cross-functional collaboration.

 

Amazon has pushed the retail supply chain to its limit, and it appears the online giant has no plans to stop anytime soon. Those left in its wake have no choice but to embrace change, innovation and find new ways to thrive.

 

Has the Amazon effect infiltrated your industry vertical? Let us know in the comments section.

 

The post Overcoming the Amazon effect: Pushing retail supply chains to the limit appeared first on The 21st Century Supply Chain.

 

Originally posted by Alexa Cheater at http://blog.kinaxis.com/2017/04/amazon-supply-chain-management-pushes-retail-limit/

by Bill DuBois

Supply chain planning systemsThere have been some pretty significant revolutions throughout history. The French Revolution, the Industrial Revolution and the Chinese cultural revolution – just to name a few.

 

Well, today I’m going to talk about the need for another revolution. A supply chain planning systems revolution. Will it be the stuff that future historians drool over or universities base curriculums on? Maybe. Maybe not. I’m going to discuss it anyway, because for those of us living in a supply chain world, it’s big deal.

 

The world is changing – new technology, globalization, shifting markets, changing demographics, global warming – you get the idea. So while everything’s been changing around us, why hasn’t supply chain planning evolved to any great extent?

 

Times Haven’t Changed

Across the supply chain, functions and processes still operate in silos. Excel spreadsheets remain the number one way companies manage supply chain data (go figure). Current planning systems simply aren’t designed to deliver the speed and agility needed to deal with the complexity and risks associated with today and tomorrow’s supply chain.

 

You Say You Want a Revolution

The time has come to adopt new operating models that make data visible across functional and organizational boundaries. The time has come for a revolution.

 

We need supply chain planning that allows new insights to be formed and acted upon, and puts decision power into the hands (picture a fist raised in revolt) of an organization’s front line. We need a structural change in how supply chain planning is performed.

 

The Boston Consulting Group (BCG), Yves Morieux in particular, describes the drawbacks of current operating models, which are based on functional expertise with little interface between roles.

 

“The real battle is not competitors. This is rubbish, very abstract. When do we meet competitors to fight them? The real battle is against ourselves, against our bureaucracy, our complicatedness – only you can fight it.

 

Many organizations respond to increasing complexity by creating more overlays, procedures, structures, and scorecards. But these outdated methods lead businesses to spend more time managing work and less time focusing on the important activities that actually add value.”[1]

 

The key point Morieux is making is that we need cooperation across the supply chain network. We need a model that allows data, processes, and people to simultaneously work together to power the entire supply network.

 

Now, no one ever said changing an operation model is a simple exercise, but it’s definitely a necessary step required to revolutionize planning and bring supply chain planning systems into the future.

 

How about you? Are you ready to revolutionize your supply chain planning? Not sure? I invite you to check out our white paper Supply Chain Planning 4.0: Planning Revolutionized to learn more.

 

_______________________________________

 

[1] http://www.bcg.com/expertise/capabilities/smart-simplicity/default.aspx

 

The post It’s time for a revolution of the supply chain kind appeared first on The 21st Century Supply Chain.

 

Powering the future of S&OP - Kinaxis

 

Originally posted by Bill DuBois at http://blog.kinaxis.com/2017/04/its-time-for-a-revolution-of-the-supply-chain-kind/

by Melissa Clow

This blog is part of a video interview series. Check out the video below as well as links to other supply chain practitioner and Kinaxis executive interviews.

 

It’s no exaggeration to say that supply chain planning is seeing a revolution, says Jack Noppe, chief technology officer at Kinaxis. Now, no function or department has to plan in the dark or without knowledge of how a plan affects others in the supply chain.

 

Traditional supply chains planned in isolation because plans took place independently within each function. RapidResponse, the planning platform from Kinaxis, enables what the company calls concurrent planning. In other words, all functions plan in concert now. “That allows them to get better outcomes for the business and make decisions faster,” says Noppe.

 

The software’s single platform enhances end-to end-supply chain management for a number of reasons, not least that data from every source is made available much more quickly than before, Noppe says. “At the end of the day, it comes down to how much information you have when you need to make decisions, and how fast you can understand the impact of decisions.”

 

The traditional planning model made it difficult to communicate between people managing different functions. “That communication was by phone or email because the systems they used weren’t connected well. But putting everything in a single platform, all the data is connected that drives all of those decisions. But it also drives all of the processes and the relationships.” “The impact of everything that moves through the supply chain is understood better. By having a single-platform supply-chain planning module, customers can understand the impact of decisions, not just from their outcomes but from the outcomes of other functions in their organization as a whole.”

 

That’s key, Noppe says, because the very word “plan” implies an assumption about how the future will behave. “But every day there are unforeseen events that impact the plan. The ability to get lead indicators of events that might impact the plan, and the ability to respond immediately, improves your likelihood to prevent that customer from being disappointed.”

 

“The sooner you can identify that something in the future will deviate from your best plan, the sooner you can respond, take the necessary corrective action and prevent something negative from having a negative consequence.”

 

Check out the other video interviews in this series:

 

The post [Video] Long-term supply chain planning system vision and strategy appeared first on The 21st Century Supply Chain.

 

5 signs your supply chain needs to change

 

Originally posted by Melissa Clow at http://blog.kinaxis.com/2017/04/video-long-term-supply-chain-planning-system-vision-strategy/

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