The bullwhip effect is one of the common problems of supply chains, affecting manufacturers, distributors, and retailers alike. The cause of the bullwhip effect is difficult to recognize in a large, rapidly growing company. Pay attention to the symptoms. Some of the most common are raw materials, finished products, stock outs, and over stocks. Such … Read more
The S&OP process plays a vital role in how companies function, enabling executives to: Forge a strong connection between the two planning horizons: Operational activity and strategy. Reconcile and develop a culture of interaction between key departments, including sales, marketing, operations, finance, logistics, and R&D. Create an integrated and coordinated plan for the above functions, … Read more
In last week’s post, we introduced some of the lessons we’ve learned about implementing new supply chain technology. This week, we’ll take a look at some case studies from companies in Russia to the countries of the Central Asian region. Case #3: The Disappearing Team Lead As we mentioned last week, the project teams that … Read more
Every manufacturer is faced with change sooner or later. In the 21st century, there have been many such changes, from innovative supply chain technologies to new methods to improve the quality of products, or even the entire supply chain management system. Before you embark on such a time-consuming change, you may have some fear: what … Read more
Even without demand variability, production schedules cannot be executed. Any planner with shop floor experience knows that demand variability is not the only source of distortion. Suppliers, employees, and equipment can also let you down. Usually, this type of variation is known as operational variability. Below is a chart that shows the BOM and Routings … Read more
