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2016
by Teresa Chiykowski

Halloween Supply Chain ManagementWarning: This blog post isn’t for the faint of heart. In fact, I should include a PG-13 rating on it. Just kidding, although, for those involved, the scare factor must’ve been pretty high at times.

 

Halloween is big business. In fact, National Retail Federation’s annual survey estimates that enthusiastic celebrators will spend an estimated 8.4 billion on Halloween – an all-time high in the survey’s 11-year history. You could say the pressure’s on for retailers to deliver the costumes, treats and decorations demanded by the estimated 171 million Americans planning to partake in Halloween festivities.

 

But the scary truth is that sometimes retailers can’t deliver. Often, unexpected events such as suppliers failing to deliver, software glitches and even Mother Nature can wreak havoc with even the best supply chains.

 

On that note, I’d like to share some tales that undoubtedly still “haunt” the parties involved.

 

The great pumpkin shortage scare

What are Halloween and Thanksgiving without pumpkins?  In October 2015, it was a frightening thought for fans of falls’ favorite flavor. Predictions warned that only those who got to the store weeks before Thanksgiving would find canned pumpkin. A pie-making crisis was inevitable.

 

The reason: Illinois produces about 90% of sugar pumpkins each year. But when Mother Nature (in the form of heavy rains) hit Illinois hard, half of the crop was wiped out. Fortunately, Libby’s, which has an estimated 80% of the canned pumpkin market, had enough canned inventory to make it through Thanksgiving. Pie crisis averted, but just barely.

 

Hershey’s Halloween nightmare

In September 1999, candy giant Hershey Foods former CEO and Chairman told Wall Street analysts that the company was having trouble with its new order-taking and distribution computer system. He also said that the issues would keep Hershey’s from delivering $100 million worth of Kisses and Jolly Ranchers for Halloween.

 

Guess what happened then? The company’s stock price fell more than 8% that day, and the computer system mystery made the front page of The Wall Street Journal. Was the 8% unusually high? It was about the norm according to research shared in the World Economic Forum Report. On average “supply chain disruptions can reduce shareholder value by 7%, with disruptions affecting stock prices even before formal announcements or coverage of impacts.”

 

Wal-Mart’s frightening RFID debacle

On June 11, 2003, Walmart CIO announced that the company would require its 100 top suppliers to implement radio-frequency identification (RFID) – technology that promised fast-tracking of items and, ultimately, a more efficient supply chain. But things went wrong, terribly wrong. The retailers involved, the researchers, the standard organizations underestimated the issues:

 

  • RFID technology had not matured enough to prove effective in the industry in a real-world setting like retail supply chain.
  • Pricey RFID tags could be the difference between profit and lost for products with small margins.
  • Maintaining two inventory streams, including a Wal-Mart dedicated one, was costly for suppliers.
  • RFID technology proposed a threat to suppliers’ IT departments and managers.

In response to the RFID hype started by Wal-Mart, RFID manufactures and investors poured in large amounts of money. But, sadly, RFID never really took off. It was RIP for many companies that bet the farm on RFID.

 

By 2007, after various delays and issues – Walmart changed its RFID strategy. While RFID technology wasn’t completely abandoned, the promise of making sure products landed at the right place at the right time, never became supply chain reality.

 

Have you got scary supply chain stories to share? We’d love to hear them. We can always, write a sequel to this post and call it, “Tales from Supply Chain Crypt 2.”

 

 

 

The post Ooh, Scary Stuff, Kids. Tales from the Supply Chain Crypt. appeared first on The 21st Century Supply Chain.

 

blog-email-concurrent-planning-infographic-kinaxis

 

Originally posted by Teresa Chiykowski at http://blog.kinaxis.com/2016/10/ooh-scary-stuff-kids-tales-from-the-supply-chain-crypt/

by Teresa Chiykowski

Supply chain collaborationWelcome to the first blog post in our three-part series discussing three ways to improve supply chain collaboration.

 

Maybe I’m stating the obvious but… a lot has changed in the world of manufacturing since Keith Oliver of Booz, Allen and Hamilton Inc. coined the term “supply chain management” in early 1982.

 

Move over, 1982, it’s 2016.

 

It’s no surprise that today’s supply chains are more complex than those of three decades ago. They face ever-growing volatility, uncertainty and risk. Lack of visibility and collaboration in supply chain management is dramatically impacting the time it takes to make critical decisions. And, in the end, sometimes those decisions end up being wrong ones.

 

Making informed decisions fast comes down to collaboration – how effectively the data, processes and people who oversee the supply chain can connect, communicate and interact with one another. But, for many organizations, there’s a distinct disconnect between data, processes and people that is preventing collaboration.

 

What’s inhibiting collaboration and, more importantly, what can be done to fix what ails? You’ll find the answers in the new eBook, 3 Ways to Improve Supply Chain Collaboration. The book looks at how companies can foster ongoing supply chain collaboration by eliminating the disconnects between data, processes and people.

 

Let’s zero in on the first of the “disconnects” explored in the eBook – data.

 

The challenge: Disconnected data

Today’s supply functions and processes are siloed, making data extraction, capture and analysis siloed, as well. Often, departments take a vertical approach to reporting, whereby individual, functional metrics are tracked, instead of taking a horizontal view that gives insight into the health of the supply chain network and interdependencies of the individual functions.

 

Faced with multiple ERPs, modules, Excel spreadsheets and data warehouses around the globe, these organizations have a significant challenge – they have more data in more places than ever before, making end-to-end visibility of the supply chain impossible.

 

Most systems don’t have the required analytical capabilities in one place, which has only solidified some companies’ reliance on Excel spreadsheets. In this manual approach, stakeholders are forced to make decisions based on stale data that could be days or even weeks old.

 

The solution: A single place for data

Rather than spending time collecting and consolidating data in spreadsheets that will quickly be out of sync with their system of record, stakeholders can get straight to the business of collaboratively planning and responding to supply chain demands. They can do this by implementing cloud-based technology that combines real-time data streaming and historical data to transcend the different behaviors of each system or data source.

 

Global professional services company Accenture underscores the importance of this approach: “With the amount of data required for analytics ballooning,” Accenture says, “Companies need to perform calculations on the data, create and execute simulation models, and compare data statistics faster than ever.”[1]

 

Get the full story on how to improve supply chain collaboration by downloading the eBook. Plus, stay tuned for upcoming posts on the remaining two disconnects inhibiting collaboration in supply chain management: processes and people.

 

[1] Data Acceleration: Architecture for the Modern Data Supply Chain, Accenture 2014

 

The post Improving Supply Chain Collaboration: Connecting Data appeared first on The 21st Century Supply Chain.

 

Originally posted by Teresa Chiykowski at http://blog.kinaxis.com/2016/10/improving-supply-chain-collaboration-connecting-data/

by Alexa Cheater

End to end supply chain managementSupply chains today are in a state of transition. Demand patterns are changing. Key supplier locations are shifting. Technology is evolving more rapidly than ever before. And making sure your end-to-end supply chain management is equipped to keep up has become a looming challenge on every supply chain manager’s mind.

 

Kevin O’Marah, the Chief Content Officer for SCM World, shared his predictions on three megatrends coming to the supply chain industry as the opening keynote presenter at Kinexions, Kinaxis’ annual user and training conference.

 

First on the list was people – changing demographics and population growth. New projections by the United Nations suggest the world’s population may surpass 10 billion by 2100. Asia and Africa will continue to widen the gap as the most populous regions. More people means more demand. Growth in Asia and Africa means shifting logistics and manufacturing locales to make meeting that demand in a speedy and efficient manner possible.

 

O’Marah sees sustainability and accountability as the second megatrend. We’ve already seen evidence of this as large corporations implement open sustainability plans that outline environmental impact. These plans include steps to minimize the impact, as well as how those companies support local and regional economies and the workers who live there.

 

But the biggest and most important megatrend according to O’Marah is digitization. Cisco predicts by 2020 that there could be as many as 50 billion devices, with connected pieces of technology outnumbering the human population. Sentient supply chains are one possible future reality, as a result. While O’Marah doesn’t think we’re headed down the road to The Matrix, or even The Jetsons, he does believe the notion of a sensing, intelligent supply chain could lead to utopia, where humans and technology co-exist in a state of harmony.

 

However, there are risks. Chasing every shiny object could lead your supply chain down a path of instability. Dismissing emerging technology as just hype could leave you stranded decades behind your competitors. Travelling down the path of supply chain digitization means starting with the basics – supply and demand sensing, supply and demand response, and decision making. O’Marah notes these principles are what build on your existing supply chain infrastructure.

 

Demand sensing is knowing with absolute certainty what the customer needs, while supply sensing is total accountability – knowing what’s possible, and what isn’t. Supply response is mass customization, making it happen, and demand response is total satisfaction – You give your customers exactly what they want. Finally, decision making is driving a sustainable business model; One that’s profitable, while keeping those promises to the customer.

 

While the future is still fluid, we’re already seeing shades of all three of O’Marah’s megatrends impacting current supply chain practices. What other trends are you seeing? Let us know in the comments area below.

 

 

 

The post Future of End-to-End Supply Chain Management: 3 Megatrends to Watch For appeared first on The 21st Century Supply Chain.

 

blog-email-concurrent-planning-infographic-kinaxis

 

Originally posted by Alexa Cheater at http://blog.kinaxis.com/2016/10/future-end-end-supply-chain-management-3-megatrends-watch/

by Bill DuBois

Well, we’re back from another successful Kinexions. Everyone at Kinaxis is still catching their breath and singing Eagles tunes.

 

There were so many highlights this year’s supply chain conference, it was difficult to get this into a top 10 list, but we did it.

 

Can you believe my one and only supply chain joke didn’t make the list? You know the one, “What do you get when you play a country song about supply chain backwards? You get your revenue back, your margins back, your customers back…”

 

Anyway, from the Late Late Supply Chain Show, here are our Top 10 Kinexions ’16 highlights.

 

kevin-omarah10. Kevin O’Marah. As our day 1 keynote, Kevin did a great job kicking off the conference with his talk on the future of supply chain.

 

Often, we’re so caught up on our day-to-day activities we don’t think about the mega trends that can affect supply chain. As one person summed it up, “It’s so important to think about what is coming 5/10/20+ years from now. I don’t get that chance too often.”

 

9. Mainstage Presentations. I may be cheating on this one, but it was too hard to pick just one. Presentations from Ford, Keysight, Roland and Xilinx were all described as “informative and insightful.”

 

Product roadmap conversations are always popular, and the encore of “The Top 5 Things You Didn’t Know You Could Do with RapidResponse” was a real showstopper. There was also the Maintaining Momentum panel that showcased another four customers.

 

8. Late Late Supply Chain Show Band. At first glance, live music at 8:00 a.m. may not seem like a good idea. However, the first ever Late Late Supply Chain Show Band brought another level of energy to the room as the band played the presenters to stage. Hopefully nobody needed earplugs!

 

7. Access to Partners. Besides getting to rub elbows with some real supply chain experts, our Partners participated in mainstage presentations and breakout sessions, as well as manning booths in the Expo hall. Accenture, Deloitte, Barkawi, Aline, Prana, Cognizant and Clarkston Consulting all provided valuable supply chain insights. Of particular interest was the mainstage presentation where Deloitte and Barkawi shared the Vizio story.

 

6. Breakout Sessions. Okay, I may be cheating again but there were too many great breakout sessions to pick just one. There were the usual RapidResponse gurus in attendance to deliver educational materials on everything from functional business capabilities and integration improvements to knowledge services and best practices. Standout sessions came again from the customers, including Xilinx, Allegro, Celestica, Plexus, Amgen and Trinity Rail, who all shared their compelling RapidResponse journeys.

 

don-felder5. Don Felder. It was certainly a memorable experience to listen to Don’s timeless classics from his days with the Eagles, and then listen to his stories behind the music the next morning. Nicest guy in rock and roll. Enough said.

 

4. Expo. If you had questions coming out any sessions, this was the place to follow up for answers. There were over a dozen booths including Partner, product and demo booths. At the center, was the Club Axis booth (more on that in a second).

 

3. Mobile App. This year’s mobile app was the best yet. You could manage your agenda, complete surveys, and tweet and connect with other conference participants. The most valuable part of the app may have been the map of the hotel. I’m sure it saved me a few miles looking for my room!

 

2. Club Axis. I would say this is the most exciting initiative we have going on here at Kinaxis. Club Axis allows our customers to connect, learn and share better than ever before

 

1. Many Customers. One place. Although Club Axis will allow customers to connect all year round, Kinexions is the place to connect in person. There’s nothing like hearing from others about their RapidResponse experiences. This quote from a Club Axis challenge sums it up, “I loved being able to network with different supply chain professionals and learn best practices from other organizations.”

 

Did I miss any highlights? Would you add anything to the list? What would you do differently next year? We certainly want to say a big “thank you” to everyone who attended this year, and hope to see y’all again next year!

 

The post The Late Late Supply Chain Show: Top 10 Kinexions Supply Chain Conference ’16 Highlights appeared first on The 21st Century Supply Chain.

 

blog-email-concurrent-planning-infographic-kinaxis

 

Originally posted by Bill DuBois at http://blog.kinaxis.com/2016/10/late-late-supply-chain-show-top-10-kinexions-supply-chain-conference-16-highlights/

by Dr. Madhav Durbha

Bimodal supply chainI recently watched this very inspiring documentary From Rocky to Creed: The Legacy Continues, featuring Sylvester Stallone and his costars, sharing their journey through the Rocky movie franchise. For those of you not familiar with Rocky, he is the fictional, perennial underdog boxer who won some very memorable boxing matches with odds heavily stacked against him.

 

The franchise started with the Oscar winning Rocky in 1976. After Rocky V was released in 1990, Stallone decided to finish the series with Rocky Balboa in 2006. The movie was a treat to all diehard Rocky fans. However, the 60+ year old, out of shape, arthritic Rocky working his way to tackle the then young heavy weight champion Mason “Line” Dixon was bit of a stretch. I thought that was the last I saw of Rocky. Then came the movie Creed in 2015, launching the character of Adonis Creed, son of the most flamboyant, very likeable, champion boxer Apollo Creed from the original Rocky series.

 

Here is what is different about Creed, the movie. It relaunched Rocky Balboa, in a far more believable role as one who coaches Creed, this ultra-cool, young, driven, and hungry millennial boxer to a successful championship. With its gripping narrative amplified by its perfect background score, the movie drew in an entirely new millennial demographic in addition to the previous generation of Rocky fans, setting up for what is guaranteed to be a highly anticipated spinoff franchise. But Creed did not become such a massive success without leveraging and building upon the strengths of Rocky Balboa. Rocky and Creed together really made 1+1 =3!

 

Now, what does this all have to do with Bimodal supply chain? Gartner defines bimodal as follows: Bimodal is the practice of managing two separate but coherent styles of work: one focused on predictability; the other on exploration. Mode 1 is optimized for areas that are more predictable and well-understood. It focuses on exploiting what is known, while renovating the legacy environment into a state that is fit for a digital world. Mode 2 is exploratory, experimenting to solve new problems and optimized for areas of uncertainty.

 

In other words, Mode 1 is evolutionary and Mode 2 is revolutionary. Mode 1 is legacy and Mode 2 is the new generation. Mode 1 goes through the traditional development and deployment paradigm of long cycles. Mode 2 follows the agile iterative testing and rollout process with continuous release of capabilities. Mode 1 automates the predictable. Mode 2 is smart, social, mobile, and collaborative; everything that is needed to tackle the complexity and volatility of today’s business. In the end, both modes have a role to play.

 

Tying it to my supply chain world, Mode 1 consists of the legacy ERP investments that some of our customers have made. These are hard to rip and replace. By itself, the legacy capability has slow reflexes, and cannot keep up with the rapidly changing needs of the business. But it does capture transactions as they happen and retain them.

 

However, with a Mode 2 approach, we see a new generation of hip, cool, collaborative, fast and cloud-based supply chain planning capabilities. Instead of ripping and replacing Mode 1, the capabilities of Mode 2 are layered on top of Mode 1. We do see this bimodal methodology in action with our customers as they continue to revolutionize their planning. They are doing this by moving away from a batch, functionally oriented supply chain planning to a real time, network level, scenario-based supply chain planning. In essence, the mode 1 legacy ERP investments are Rocky Balboa and the mode 2 RapidResponse capabilities are Adonis Creed. Both have a role to play. Let Mode 2 do the heavy lifting and hard work like Creed, while Mode 1 supports like Rocky Balboa. The combination truly makes 1+1 =3!

 

The post Rocky Balboa and the Bimodal Supply Chain appeared first on The 21st Century Supply Chain.

 

blog-email-concurrent-planning-infographic-kinaxis

 

Originally posted by Dr. Madhav Durbha at http://blog.kinaxis.com/2016/10/rocky-balboa-bimodal-supply-chain/

by Alexa Cheater

End-to-end supply chain managementBusiness processes are shifting. Technology is evolving. The Internet of Things (IoT) is exploding. Is your global end-to-end supply chain management (SCM) strategy set to keep up? Industry 4.0 is here, and it’s bringing with it a whole new world, one that’s likely going to involve substantial change to your IT infrastructure.

 

By 2020, Cisco predicts there will be 50 billion IoT connected devices. Gartner believes this will add $1.9 billion in economic value, resulting in IDC’s forecast of $7.1 trillion of IoT solutions sold within that same timeframe. Availability and utilization of data will be key in driving that growth.

 

Doing More with Available Data

The McKinsey Global Institute, a leading technology research firm, says less than one percent of available data is currently being accessed by businesses – who primarily mine it for alarms and real-time control. They say so much more can be done to use that data to help transform business processes and enable new business models through the use of optimization and prediction.

 

Industry 4.0 can’t just be driven by technological advances. There has to be strategy behind the selection, deployment and interaction of these new devices and networks. Zoltan Pekar, the VP of Roland DG’s Global SCM Division, recently discussed this very topic at Kinexions, the Kinaxis annual user and training conference. During his presentation, he noted two emerging technologies his company is focusing on as they move toward the future – artificial intelligence (AI) and machine-to-machine (M2M) interfaces.

 

Both need to be based on big data analytics, advanced algorithms and human-machine interfaces. They focus on using data for prediction and optimization, implementing machines and AI to manage the day-to-day, freeing up Roland’s people to focus on exception management and innovation.

 

Pekar believes one of the core competencies driving Industry 4.0 is the next revolution of supply chain management. SCM 4.0 is a critical component to successfully completing this paradigm shift.

 

The Rise of End-to-End SCM 4.0

For Roland DG, SCM plays a connecting role in its “glocal” orchestration. No, that’s not a typo. Glocal is what Pekar describes as a blend of global integration and local responsiveness. And at the heart of that? Global SCM. It bridges the market, and its associated functions (sales, marketing, service), with manufacturing (including R&D). The company is using a hybrid of lean and agile to execute its SCM.

 

What Pekar and his team quickly realized was that Industry 4.0 requires SCM 4.0 in order to succeed. He says sustainable growth through business creation and a shift of business models is necessary.

 

According to Pekar, SCM 4.0 is digital, agile and data-driven. It’s sensing, intelligent and social, and provides network-wide value through real-time, responsive control. It acts as the management system for Industry 4.0 and provides the backbone for new business context involving AI and IoT, and a new corporate culture, strengthened by collective leadership.

 

SI&OP as the Foundation

Focused on creating an integrated global system that can better predict the future, and in turn support sales and production planning activities, Roland DG used sales and inventory and operations planning (SI&OP) as the foundation for its move to Industry 4.0. SI&OP functions as a global control tower in managing Roland’s data-driven flows. With continuous and collaborative SI&OP, the company has been able to improve visibility into issues, reduce resolution time and achieve alignment across business functions; Collaborative demand planning that’s driven by the global supply chain.

 

Pekar’s hope is to reduce active demand planning to a two-week cycle and active inventory management to a one-week SCRUM cycle. That AI and M2M I mentioned earlier is how. Plan and do will be executed by machines, enabled by IoT and a new IT infrastructure. Check and act will be controlled by humans, allowing for intuition and compromise to play a role.

 

The role of IT within global SCM is expanding thanks to rapidly changing technologies and a new level of connectivity. Big data, advanced algorithms and analytics and IoT are leading us down a path of data use for optimization and predictability. The impacts on business revenue and growth, as well as global SCM is huge, but there has to be a driving strategy behind it all. Industry 4.0 requires SCM 4.0. SCM 4.0 requires IT investment and restructuring, as well as a corporate shift in culture. All of it requires a clear strategy with end-to-end, interconnected data, people and processes at its heart.

 

What role has IT played in your global SCM strategy? Let us know in the comments area below.

 

The post The Changing Role of IT in End-to-End Supply Chain Management appeared first on The 21st Century Supply Chain.

 

blog-email-concurrent-planning-infographic-kinaxis

 

Originally posted by Alexa Cheater at http://blog.kinaxis.com/2016/10/changing-role-end-end-supply-chain-management/

by Melissa Clow

Kinexions Supply Chain“The future is about this connected enterprise with people working together.”

 

– Trevor Miles, VP of Thought Leadership at Kinaxis

 

The first day of Kinexions 2016 introduced the revolution of the supply chain. There’s no stopping the speed at which supply chains are running today, which means businesses have to integrate technology, processes, and people in order to successfully manage their supply chain and mitigate risks that arise.

 

So how do we actually implement integrated supply chain solutions?

 

That’s where Day 2 of Kinexions came in, with sessions and discussions focused on how businesses today are actually leveraging technology and transforming their internal infrastructures for more efficient end-to-end supply chain planning. Based on learnings from the second and final day of Kinexions, here’s how to actually implement digitization and take your supply chain to the next level.

 

Leverage IoT and AI in Business Strategy

In his session, Zoltan Pekar explained that while Roland DG Corporation had been at the forefront of digital technology and computing, there was now a need to integrate thanks to the rise of IoT and AI – the “4th Industrial Revolution”. In order to do this, Roland DG needed both the right technology and processes in place. With RapidResponse, Pekar and his team were able to set the foundation of their integrated strategy, becoming more data-driven, agile, and responsive. They then created a new corporate culture and management system, embracing digitization, collaboration, and customer centricity. By integrating new technology and strategy, Roland DG has been able to break down siloes and connect its entire value chain.

 

Adopt Adaptive Collaboration

One of the key capabilities of RapidResponse is concurrent planning. Before the rise of cloud technologies, businesses would communicate about supply chain problems through email, where attachments and information would get lost and collaboration was difficult. The day’s live concurrent planning demo showed how RapidResponse ties in the key ingredient to supply chain efficiency: the people.

 

The demo started with an executive noticing a discrepancy in revenue within RapidResponse, and using the platform to create an interactive collaboration with a demand planner to begin resolving the issue.

 

By tying together technology and human judgement, people are able to collaborate quickly and efficiently on a supply chain problem within a single interface.

 

Maintain the Momentum After Implementation

Implementing a tool like RapidResponse successfully is important, but that’s not where the story ends. After implementation, the next step is to keep users engaged and make sure you’re continuing to find new opportunities that get you value from the system. Brands like AMGEN, Cisco, D&M Group, and Avaya shared different ways they’ve kept up the momentum:

 

  • Seeing is believing. D&M Group found that when people actually saw what RapidResponse was capable of, they began looking for more opportunities to leverage it. Those who were using the tool and were inside the data every day, were the ones who pushed to do more and find more capabilities.
  • Once implemented, AMGEN set up a center of excellence called the RapidResponse Competency Center (R2C2). The R2C2 team creates enhancement roadmaps that focus on what they want to build and roll out over the next 3-4 years. This planning keeps people engaged and excited about the future.
  • Avaya started to use RapidResponse to automate a lot of supply chain processes, which freed up employees’ time for more critical thinking and action.

Kinexions 2016 showed that it isn’t only about technology or the people. The future of supply chain lies within the integration of data, processes, and people, with many brands already embracing it across their businesses. So, what are you waiting for? Join the revolution and we’ll see you next year for Kinexions 2017!

 

The post Kinexions Day 2: Supply Chain Data, and Processes, and People, Oh My! appeared first on The 21st Century Supply Chain.

 

blog-email-supply-chain-collaboration-ebook-kinaxis

 

Originally posted by Melissa Clow at http://blog.kinaxis.com/2016/10/kinexions-day-2-integrated-supply-chain-solutions-kinaxis/

by Melissa Clow

Kinexions Day 2: Supply Chain Data, and Processes, and People, Oh My!

“The future is about this connected enterprise with people working together.”

 

– Trevor Miles, VP of Thought Leadership at Kinaxis

 

The first day of Kinexions 2016 introduced the revolution of the supply chain. There’s no stopping the speed at which supply chains are running today, which means businesses have to integrate technology, processes, and people in order to successfully manage their supply chain and mitigate risks that arise.

 

So how do we actually implement integrated supply chain solutions?

 

That’s where Day 2 of Kinexions came in, with sessions and discussions focused on how businesses today are actually leveraging technology and transforming their internal infrastructures for more efficient end-to-end supply chain planning. Based on learnings from the second and final day of Kinexions, here’s how to actually implement digitization and take your supply chain to the next level.

 

Leverage IoT and AI in Business Strategy

In his session, Zoltan Pekar explained that while Roland DG Corporation had been at the forefront of digital technology and computing, there was now a need to integrate thanks to the rise of IoT and AI – the “4th Industrial Revolution”. In order to do this, Roland DG needed both the right technology and processes in place. With RapidResponse, Pekar and his team were able to set the foundation of their integrated strategy, becoming more data-driven, agile, and responsive. They then created a new corporate culture and management system, embracing digitization, collaboration, and customer centricity. By integrating new technology and strategy, Roland DG has been able to break down siloes and connect its entire value chain.

 

Adopt Adaptive Collaboration

One of the key capabilities of RapidResponse is concurrent planning. Before the rise of cloud technologies, businesses would communicate about supply chain problems through email, where attachments and information would get lost and collaboration was difficult. The day’s live concurrent planning demo showed how RapidResponse ties in the key ingredient to supply chain efficiency: the people.

 

The demo started with an executive noticing a discrepancy in revenue within RapidResponse, and using the platform to create an interactive collaboration with a demand planner to begin resolving the issue.

 

By tying together technology and human judgement, people are able to collaborate quickly and efficiently on a supply chain problem within a single interface.

 

Maintain the Momentum After Implementation

Implementing a tool like RapidResponse successfully is important, but that’s not where the story ends. After implementation, the next step is to keep users engaged and make sure you’re continuing to find new opportunities that get you value from the system. Brands like AMGEN, Cisco, D&M Group, and Avaya shared different ways they’ve kept up the momentum:

 

  • Seeing is believing. D&M Group found that when people actually saw what RapidResponse was capable of, they began looking for more opportunities to leverage it. Those who were using the tool and were inside the data every day, were the ones who pushed to do more and find more capabilities.
  • Once implemented, AMGEN set up a center of excellence called the RapidResponse Competency Center (R2C2). The R2C2 team creates enhancement roadmaps that focus on what they want to build and roll out over the next 3-4 years. This planning keeps people engaged and excited about the future.
  • Avaya started to use RapidResponse to automate a lot of supply chain processes, which freed up employees’ time for more critical thinking and action.

Kinexions 2016 showed that it isn’t only about technology or the people. The future of supply chain lies within the integration of data, processes, and people, with many brands already embracing it across their businesses. So, what are you waiting for? Join the revolution and we’ll see you next year for Kinexions 2017!

 

The post Supply Chain Data, Processes and People: Kinexions Supply Chain Conference Day 2 appeared first on The 21st Century Supply Chain.

 

blog-email-supply-chain-collaboration-ebook-kinaxis

 

Originally posted by Melissa Clow at http://blog.kinaxis.com/2016/10/kinexions-day-2-integrated-supply-chain-solutions-kinaxis/

by Melissa Clow

kinexions supply chain conferenceHow do you start a supply chain revolution in Nashville? With some toe-tapping music from the Late Late Supply Chain Show band and rockin’ guitar playing from Kinaxis Director of Marketing Content, Bill DuBois, of course!

 

After an electric and entertaining opener, it was time to get down to business. From opening remarks from John Sicard, president and CEO of Kinaxis, to presentations from SCM World, Ford, and Keysight Technologies, the core theme was this revolutionizing of the supply chain where integration of technology and human involvement are paramount. Let’s take a deeper dive into Day 1 of the Kinexions supply chain conference:

 

Supply Chain Planning Components are Better Together than Apart

 “Humans have to be involved, they have to be empowered.”

 

In supply chain planning, there are a lot of individual processes – capacity planning, demand planning, inventory management, etc. As Sicard put it, each individual process in supply chain planning is like a link in a chain. Each link serves a purpose and is necessary for making the supply chain function. However, supply chains have focused on these “links” one at a time and in siloes, rather than integrating them. According to Sicard, all parts of the supply chain must be interconnected, with human involvement and empowerment at the forefront. As the supply chain continues to speed up and evolve, anyone should be able to simulate anything they want at any time for faster and more strategic decision making and maintenance of the supply chain.

 

Digitization: The Roadmap to the Supply Chain Future

“All the stuff we do puts us in a situation where we can live in clean cities next to nice, open green space.”

 

In his session, Kevin O’Marah, Chief Content Officer at SCM World, showed a slide of what looked like Utopia – a clean, sparkling city surrounded by large green areas. He said supply chains can reach this sentient level, where they sense and react to situations at very granular detail. Running a sustainable supply chain that hits major consumer growth and provides connectivity to everything sounds great, right?

 

But how do we actually get there?

 

It’s all in the digitization and ability to better sense supply and demand:

 

  • Demand Sense – This is 100% customer centricity and knowing what your customers need at all times. Facebook is a prime example of doing demand sense well, understanding their audience and running ads that hit exactly what their users want.
  • Supply Sense – After knowing your customer inside and out, supply sense is focused on accountability and knowing what’s possible with your supply chain. O’Marah used BMW here, sharing that the auto company’s big data analytics package allows them to identify strikes and capacity issues, sensing the demand before anyone has to tell them.
  • Supply Response – Now that you’ve sensed it and know what’s possible, it’s time for mass customization, where you make what your customers want. Harley Davidson does this well, producing bikes according to the unique specifications of its customers.
  • Demand Response – Coming full circle, demand response is about total customer satisfaction, with Amazon leading as a top example of successful product shipping, the end game of supply chain.

With more sustainable business models and better sensing supply and demand, the future of supply chain can look more like a Utopia, rather than looking like a scene straight out of the Matrix.

 

Going from 0 to 60 with Globalized Capacity Planning and Production Efficiency

“We all need to believe we can be the best at what we do, so we can be the best at what we do.”

 

Two customer sessions from Ford and Keysight Technologies focused on how RapidResponse was able to take their businesses to new heights.

 

For Ford Motor Company, RapidResponse made global capacity planning possible. At Ford, global data standards were nonexistent and a major challenge for a global company that was built around the independence of its regional sites. After a “near death experience” with significant market hits and collapse in revenue, David Thomas, Ford’s Director of Global Capacity Planning, said the auto company bounced back and set up globalized capacity planning for the first time ever. Using RapidResponse’s capabilities, Ford was able to increase its global supply chain visibility and efficiency to better manage its $150 billion annual revenue stream.

 

For Keysight Technologies, RapidResponse was the key to better production planning efficiency. Jenny Balderrama, a production planner at a company that brings breakthrough electronic products to market faster and at lower cost, was spending 12-16 hours a week working on the job release process and 8-10 hours a week on internal sales order management. As a result of the RapidResponse workbooks and tools that were implemented, Balderrama and her team were able to drop the job release process to a single hour per week and cut the time it took for sales order management in half.

 

The first day at Kinexions brought with it a lot of great sessions and discussion around what the future and revolution of the supply chain looks like. Stay tuned for coverage of Day 2 from Kinexions 2016!

 

The post Let’s Start a Revolution: Kinexions Supply Chain Conference Day 1 appeared first on The 21st Century Supply Chain.

 

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Originally posted by Melissa Clow at http://blog.kinaxis.com/2016/10/lets-start-revolution-kinexions-supply-chain-conference-day-1/

by Tom Gregorchik

Future of supply chainI was recently asked a simple question during an interview: “Where do you see supply chain in 2030?”

 

I started thinking about this question when it dawned on me… where has the time gone? It seems like just yesterday I graduated from Penn State armed with a degree in Industrial Engineering and started a consulting job implementing demand planning and supply planning modules for a large CPG company.

 

And when I thought of the future of supply chain, I thought to myself that the year 2030 is 14 years from now—the same 14-year span of when I started in supply chain. A lot can change in such a short amount of time!

 

Last month, I attended the Supply Chain Insights conference in Scottsdale, AZ. It was a great conference, and I heard from many leaders in the industry on their supply chain journeys and how they are solving key problems with people, process and technology. There were many different stories that were shared on their successes in all industries, and the theme of the conference always came back to where supply chain will be in 2030. There were some excellent thoughts on software, processes, and even how robotics will be at the forefront.

 

I thought back to the state of the supply chain when I was a college student at State College. While I was learning all the basics in the classroom, I was probably more concerned with the supply chain of a pizza coming to my doorstep. Just thinking about ordering a pizza from Domino’s back then makes me laugh—you would have to make an actual phone call (hopefully not be put on hold), tell them your order, ask about specials, explain your address, and hopefully, within 30 minutes, your pizza would arrive. Nowadays, you can order online and log onto the Domino’s website to track your pizza from the oven to your house!

 

After coming to grips that I’m no longer a carefree college kid more concerned about the supply chain of a single pizza making it to my door, I put together 3 predictions of what the supply chain will be like by 2030:

 

  1. Companies will change job functions
    Companies formed job descriptions of “demand planner”, “supply planner”, and “master scheduler” because that’s the way the solution providers sold their software modules. Because technology has evolved and all of those functions can be collapsed into a single data model, in the year 2030, there will be more end-to-end network planners instead.
  1. Data sharing will drive the supply chain
    Whether your company is a high tech manufacturer producing components for the next gadget or you’re making food products being sold into retailers, you will be leveraging the next level of supply chain data to drive your supply chain. Many enterprises have already been sharing data for many years with their trading partners. However, in 2030 this will be the standard.
  1. Collaboration will be more prevalent
    With the solutions of the past, it was very challenging for sales and marketing to participate in scenario planning, let alone for the supply chain to communicate amongst each other! In 2030, all enterprises will rely on collaboration and scenario planning among all members of the team and be able to easily pick the best strategy based on key performance metrics.

What are your predictions for the supply chain in 2030? I look forward to hearing from you.

 

The post 3 Predictions for the Future of Supply Chain by 2030 appeared first on The 21st Century Supply Chain.

 

Originally posted by Tom Gregorchik at http://blog.kinaxis.com/2016/10/3-predictions-future-supply-chain-2030/

by Pradeep Chadha

Automotive supply chainLast weekend, a senior member of my family asked me if I could come along to help him shop for a car at a local dealership. What I thought was going to be a non-exciting “dealing with a car salesman” kind of day turned out to be a thought-provoking automotive supply chain awareness trip.

 

After going over the inventory in the dealership system, we zeroed in on a car and decided to take it out for a spin. As soon as my uncle took the driver’s seat and started the car, he got dispirited and asked the salesman, “where are the knobs?” You know…the kind which you turn to start the radio, the air condition and the fans?

 

The salesman informed him that everything is high-tech now and is in the LCD panel. My uncle was not impressed, but still tried to figure out the panel, which for myself sitting in the backseat found to be very intuitive. Nevertheless, he decided not to take the car for a drive and declared he wanted a car where you have to turn the knobs for radio volume, etc. The salesman informed us that for that make/model, knobs went away a couple of years back and since then, it is only available in higher priced makes/models.

 

Hearing that, I started thinking about the automotive industry’s supply chain management in the background – how the advent of the LCD panel and its ever-increasing processing power has enabled firmware that can control the functions of a car without knobs and switches. This innovation has eliminated the need for knobs and switches, and removed material handling, moving part reliability issues, etc.

 

And knowing how the supply-demand cycle works, it seems that roles have switched – the LCD panels are becoming more standard, while knobs and switches are now more premium features. And with software replacing several manual controls, we should expect to see this trend more and more. But then, demand always governs supply – If there are more uncles like mine, knobs and switches will always be available for those who want them, but they’ll be more expensive. For now though, my uncle was able to find an almost fresh used car on the lot with the features he was looking for.

 

The post Knobs, Switches and the Evolution of the Automotive Supply Chain appeared first on The 21st Century Supply Chain.

 

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Originally posted by Pradeep Chadha at http://blog.kinaxis.com/2016/10/knobs-switches-evolution-automotive-supply-chain/

by Kevin McGowan

Supply chain managementA recent New York Times article demonstrated that supply chain management innovations can come from some unexpected places. In response to some challenges with provenance on their product, Boston-based seafood distributor Red’s Best created its own software to track where they get their fish, and where it goes once it leaves the warehouse.

 

This simple idea has transformed fishery end-to-end supply chain management, and other organizations are starting to follow suit. Lovers of fish and other seafood are starting to demand information on what they eat, very similar to other food industries, and that means opportunity is knocking for small fisheries who want to appeal to responsible consumers who are seeking quality product that is caught in a responsible way.

 

The software developed by Red’s Best removes the need for paperwork. As founder Jared Auerbach says:

 

“[The fisherman is] putting their catch data directly onto the internet, and our whole staff all over the country can see in real time as fish is being unloaded onto our truck.” This beats the paper-based system, and allows purchasers to track a fish-specific barcode so they know who caught it, where they caught it, and where that fish is going in the supply chain.

 

I was curious about the company, so I got in touch with Valerie Rosenberg, the Director of Retail and Marketing at Red’s Best:

 

What would you say is the greatest supply chain challenge for your organization?

 

Red’s Best has gotten very good at offloading a little fish from a lot of different boats; our internal supply chain works as fluidly as possible considering the number of moving parts including weather patterns, fishermen’s schedules, seasonality and number of vessels. So really, supply chain overall is relatively a matter of maintenance and constant fine tuning. But one of the biggest challenges and opportunities for us is to keep talking about and exposing end consumers to locally-caught lesser known species. For example, we currently export 90% of dogfish (cape shark) landed in Chatham, MA to the UK to be used for fish n’ chips. The UK is in fact known for their great fish and chips. So, as a country, why are we exporting so much pristine, healthy, delicious seafood while simultaneously importing so much from overseas? So, really it’s more about growing species recognition to help adjust a somewhat backwards consumer supply and demand chain.

 

Jared mentions in the NYT article that the paperwork was a “nightmare” for the organization, and not a scalable solution. How did the team decide to go off and build its own software solution?

 

One of the best images that Jared has ever shared is how he and his wife used to sit on their living room floor late into the night sorting 4-part carbon copies from fishing boats. He talks about the fact that fishermen, who are very real people, would fill out paperwork slightly differently each time they offloaded a vessel… meaning the same person might be using different names unintentionally. This alone resulted in a headache of paperwork to report catch data. And that’s just one example. Jared, a huge proponent of efficiency, knew he had to streamline the process to be able to properly and quickly report all information to NOAA to meet regulations and guidelines. The software was built to improve that process – as vessels offloaded, the information was available immediately making reporting to the government faster and easier. The software also has done a number of other things of course such as making it easier for our sales team to move fish faster, resulting in fresher product to end consumers. It’s also pretty cool to see landings in real time on a computer screen!

 

It seems like consumers are asking for more information on where fish was caught, who caught it, etc.? Clearly, your software is helping with that. But why has the market shifted in this direction for seafood?

 

Absolutely. Red’s Best software definitely helps tell the story of the fleet and connects the consumer more closely to their food. It’s no secret consumers, in general, care more and more how and where their food was raised and sourced. Seafood is no different. Our software helps showcase hard working individuals and a whole network of small boat fishermen. Consumers are able to see the value of their investment. They are supporting a community rather than a faceless vessel out to sea for months or product raised in poor conditions.

 

Sure, our retail customers talk about investing in local fish to help keep our coastal communities in tact while reducing emissions but really… they always always always talk about the freshness and taste. There is nothing better than seafood plucked from the cold New England waters. The fact that our software links the fish to the fleet is the cherry on top.

 

Also, it’s important to note that the seafood industry has been slow to change. While I am not a fisherman myself, I do remember in the late 2000’s, media and educational organizations began to reveal findings that consumers weren’t eating what they thought they were eating. It was a huge eye opener and I remember it triggering a huge conversation of the importance of distinguishing species for the consumer for complete transparency. There was no going back… thank goodness! Red’s Best was coming on the scene in 2008 while this was all going down; Jared and Red’s Best were ahead of everyone else with this proprietary software tracing fish back to the vessel. Definitely great timing for Red’s Best.

 

What other supply chain challenges do you face currently? What’s the next step for your team and the software?

 

Like any company utilizing innovative technology to do our job better, we are always looking on the horizon for what’s next. What tools do we need to stay current as we grow and evolve?

 

The article also alludes to a lot of “seafood fraud”, and that “local seafood” can cost more for consumers. How can you combat this problem, and keep costs down for folks who want to cook up some fish for dinner?

 

Really important question. Honestly, consumers still have limited knowledge of less expensive, abundant, underutilized species that our local fishermen are landing every single day and in many cases year round. We find many retail customers are looking for species they are familiar with and feel like they ‘won’t mess up” like salmon, shrimp and cod. But the truth is, we have access to over 60 different species in New England such as monkfish, skate wing, dogfish, redfish, scup, mackerel, bluefish, etc. Salmon and shrimp aren’t even locally landed here in New England and we see requests for those every day. At our retail location in the Boston Public Market, we have really begun to unfold this idea, making a wider variety of species available that fall all along the pricing structure. We are also doing a lot to promote and make available “odd parts” like collars, cheeks and heads. These are gems and usually what fishermen like to eat themselves. These parts provide added profit for fishermen, too, and allow us to keep cost down. Seriously, where else in the city of Boston can you find a $5 cod head that has tons of meat on it and can feed an entire family?

 

What’s your favorite seafood dish? (Hey, this has to be a little fun!)

 

Obviously, my favorite question so far. I am a huge fan of both making and eating ceviche, as well as roasted whole fish stuffed with citrus and herbs. Both are great, cost-effective ways of making remarkable fish-forward dishes. I am a huge fan of anything that requires very few simple, quality ingredients. And both really make fish the star of the plate.

 

The post Fishing for Supply Chain: How Red’s Best is Transforming Supply Chain Management appeared first on The 21st Century Supply Chain.

 

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Originally posted by Kevin McGowan at http://blog.kinaxis.com/2016/10/fishing-supply-chain-reds-best-transforming-supply-chain-management/

by Teresa Chiykowski

Supply chain conferences 2016What do an SCM thought leader and a legendary lead guitarist have in common?

 

Easy. They’re going to jazz up our annual supply chain conference Kinexions with keynote sessions that inform, inspire and entertain.

 

This year, the Kinexions ’16 team is thrilled to welcome Kevin O’Marah, Chief Content Officer, SCM World and Don Felder, Lead Guitarist, The Eagles, as our day 1 and day 2 keynote presenters.

 

Here’s a sneak peek at what’s in store from these world-class speakers at one of the best supply chain conferences of 2016:

 

Day 1: Future of Supply Chain: Be Prepared to Work Hard to Rock On!

Presenter: Kevin O’Marah

Megatrends conspiring to reshape the supply chain future include:

 

  • Demographic turmoil and equilibration
  • Resource constraints and sustainability
  • The growing drumbeat of digitization of commerce and community

Kevin will explore how these driving factors will require supply chain professionals to have an entirely new set of capabilities for deeper demand and supply sensing, as well as radical new ways to respond with agile operations. The key challenge will be shifting away from traditional periodic time-based planning approaches to a much more business-centric, event-driven approach. In response, supply chain professional skillsets will need to work hard, rock on and evolve quickly as commercial judgment increasingly intersects with quantitative engineering disciplines.

 

Day 2: People, Process and Technology – A Musical Perspective

Presenter: Don Felder

Best known for his work as the lead guitarist of iconic rock band The Eagles, Don Felder will take us on an intimate journey from heaven to hell and share what it takes to collaborate your way to success. In a Q&A setting, hear Don’s perspective on how people, process and technology combine to create musical magic. You might be surprised how many of the same principles apply to supply chain management!

 

Check out the full Kinexions ’16 agenda

Take a look at the complete schedule to see what other topics we’ll be exploring. If you don’t already have your ticket to the hottest supply chain event in town yet, there’s no need to panic. You still have time to register and take in the conference at the Gaylord Opryland in Nashville, Tenn. on Monday, Oct. 10 through Thursday, Oct. 13.

 

On a final note, here’s a trivia question for you. On Oct. 26, 2016, what American musician and songwriter will be inducted into the Musician’s Hall of Fame in Nashville Garth Brooks and Ricky Skaggs?

 

Answer: Don Felder

 

Hope to see you in Nashville!

 

The post Kinexions Supply Chain Conference 2016 Keynote Speakers Promise to Rock the House appeared first on The 21st Century Supply Chain.

 

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Originally posted by Teresa Chiykowski at http://blog.kinaxis.com/2016/10/kinexions-supply-chain-conference-2016-keynote-speakers-promise-rock-house/

by Bill DuBois

Pharmaceutical supply chainI recently attended the LogiPharma conference in Princeton, NJ to hear a number of speakers give their thoughts on the state of the pharmaceutical supply chain. Of particular interest was a session on Contract Manufacturing Operations (CMO) relationships with Michael Daly, Director of Supply Chain for Valeant Pharmaceuticals. He talked about the 5 C’s for a CMO relationship in pharma.

 

There was agreement among many at the conference that pharma is a bit behind the high tech and automotive industries when it comes to supply chain efficiencies. To their credit, those same individuals acknowledged they were looking to other industries for best practices. High tech and automotive have long realized they could drive efficiencies up and costs down by not doing everything from scratch.

 

In many cases within high tech and automotive, the leaders in supplier relationships have developed interactive supplier engagements that allow for easy communication between customer and supplier. These improved supplier relationships have enabled the easy sharing of purchase order information, forecast requests and the ability to initiate collaborative reviews and adjustments. It’s become easier for the Original Equipment Manufacturer (OEM) to track supplier commitments and get alerts to gaps between request and commit dates, so action can be taken to avoid shortage conditions.

 

The challenges Daly highlighted we’re actually similar to what the other industries have to deal with. This includes managing PO information, supply contracts, quality agreements, delivery measures windows for late or early deliveries, capacity, new product introductions, forecast change tracking and liability. He was able to provide focus to the challenges of managing the CMO relationship by capturing them inside his 5 C’s:

 

#1 – Commitment. Commitment from both parties on getting alignment on agreed dates and outcomes and committing to the quick exchange and response to information.

 

#2 – Cost. As part of the commitment to the relationship both parties don’t want any surprises when it comes to cost and both parties want to stay competitive and make money.

 

#3 – Compliance. For the pharma CMO relationship it was worth calling out compliance. It is critical to the OEM’s survival that there are good FDA relationships. Quality issues can certainly affect cost and delivery but compliance issues can create many more issues including the health of customers or in this case, patients.

 

#4 – Capability. As with the other industries it’s vital the product and manufacturing technologies are well supported and provide differentiators that drive cost, delivery and margin benefits.

 

#5 – Capacity. Daly observed, “capacity issues are like fog. It just rolls in, you don’t know how it got there and you can’t see your way out.” Again, here is where the OEM doesn’t want any surprises in terms of shut downs, outages or long lead times that impact schedules. As part of the commitment, it’s also important for the OEM to plan within the limits of the CMO’s capability and capacity.

 

I took Daly’s 5 C’s as a valuable guideline for anyone managing supplier relationships, regardless of industry and maturity. All CMO relationships will benefit from a mutual commitment to open and regular dialog. With so many issues to manage and the increasing challenges of globalization, supplier collaboration solutions will also require increased capabilities to seamlessly coordinate activities and respond cooperatively to changes and disruptions.

 

It was appropriate for Daly to use a quote from the song Already Gone by the Eagles: “So often times it happens that we live our lives in chains and we never even know we have the key.” Well, we are living our lives in supply chains. And we’ll find the keys by continuing the search for excellence.

 

I was also happy to hear the use of this quote because Don Felder, former guitarist for the Eagles will be playing at Kinexions, the Kinaxis annual user conference on October 12th and participating in a Q&A on the morning of October 13th. Let us know your thoughts on supplier collaboration, or better yet, hear it directly from others at Kinexions.

 

The post The 5 ‘C’s’ for CMO Relationships in Pharmaceutical Supply Chain appeared first on The 21st Century Supply Chain.

 

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Originally posted by Bill DuBois at http://blog.kinaxis.com/2016/10/5-cs-cmo-relationships-pharmaceutical-supply-chain/

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