The concept of the supply chain control tower has become very popular. But what exactly does it mean? Magic keywords abound in this field: Digitalization, advanced analytics, end-to-end, big data, collaborative, real-time, etc. All this sounds attractive, but what is the reality behind the gimmicks? What is a supply chain control tower and what does … Read more
Competition is more intense than ever. Companies closely monitor consumers and track the actions of their rivals. New products are rapidly copied and replicated. Companies must maintain a compelling and thoughtfully priced product range, but they will have difficulty standing out in the market without excellent service levels. In fact, research suggests that 80% of … Read more
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
Before MRP, the most popular approach to inventory management was Order Point, where each point is independent. Yet the more complex an operational environment becomes — thanks to a broader SKU list or changes to assortment and demand — the more likely you are to see bimodal inventory distribution, when too little of the right … Read more
The Origins of Order Point What was inventory management like before MRP? Before MRP was introduced, the most popular inventory management approach was called Order Point. The main limitations were within companies — that is, the market often wanted more than a company could build. Everything that was produced could and would be sold. Therefore, … Read more
There are a number of reasons executives give when they say they’re not ready to undertake a supply chain transformation. Before we consider implementing Demand Driven, we must: Clean up our ERP system Implement a new version of our ERP system Strengthen our supply chain management basics Implement or strengthen our S&OP / MPS Deploy … Read more
The role of the supply chain manager is by nature very transverse. It is to orchestrate the collaboration of disparate functions — sales, production, marketing, product development, and more — and deliver a flawless service to the company’s customers, while ensuring profitability. Supply chain leaders must therefore be able to speak multiple languages with their … Read more
Our management systems are based on technical data, often maintained by dedicated teams. Rigor and discipline are required to maintain this data on an ongoing basis. If you have participated in an ERP implementation, you know how much attention is paid to the subject — which sometimes drifts a bit afterwards. But what is sometimes … Read more
