The Big Data Era has changed how organizations conduct planning. Although companies have always attempted to forecast what the future would bring and how it would impact supply chain operations, they didn't have the advanced analytics available today. In some ways, they were plotting their course to future steering by their wake (i.e., using primarily historical data). Even worse, many organizational departments maintained their own databases and planned future activities in isolation.
The supply chain technology market is in transition. Over the last three decades, the market weathered consolidations, mergers and technology shifts. Many of the clients I work with are nervous about SAP APO's transition and the evolution of SAP's supply chain planning solutions. They are looking for alternatives.
"Risk permeates supply chains," writes Adam Robinson, a marketing strategist for Cerasis. You don't have to remind supply chain risk management professionals of that fact. Supply chain risks come in every flavor and variety. If risk managers start thinking about all the ways supply chains can be disrupted, it's a wonder they ever sleep or keep down dinner.
Today, I got a quick email from Peggy Gulick. Peggy was a speaker at the Supply Chain Global Summit. She had some exciting news. AGCO was honored to receive the AME 2017 Excellence Award. Congrats to the Agco team.
Today hurricane Nate's north winds are pushing against the bayous of Louisiana.
In most fields of endeavor, accuracy is a beneficial trait. The infamous lawman Wyatt Earp once stated, "Fast is fine, but accuracy is everything." Although Earp was referring to the art of shooting, he could just as well have been speaking about business processes. The late Arthur Charles Nielsen, Sr., founder of ACNielsen, once advised, "Watch every detail that affects the accuracy of your work." Although that is undoubtedly good advice, the fact of the matter is tedious work often results in errors as employee attention wanes. The result is never good.
Earlier this month, I joined a select group of supply chain executives at Lora’s annual Supply Chain Summit for a few days of heady conversations about what works, what needs work and what supply chains will look like in 2030.
For years pundits have hailed the virtues of achieving end-to-end supply chain visibility. For example, Jett McCandless (@JettMcCandless) CEO of project44, writes, "Supply chain visibility is a foundational capability to have when serving today's informed and on-demand consumer.
"We have too many planners. And even if we can afford the costs, we don't get good answers with our current forecasting processes," stated the supply chain leader on the phone. "I want to build outside-in processes, but I don't know what this looks like. Can you tell me what you mean by this statement?" My question to her was "Do you have the courage to upend the apple cart?" The essence of this discussion is shared in this post.
In manufacturing-based companies, 70-80% of costs are in the processes of source, make and deliver. Labor is an important input with 50-60% of company employees reporting through supply chain organizations.
Okay, that headline might be a bit too strong; nevertheless, digital transformation is an important issue. Becky Morgan (@fulcrumcwi), President of Fulcrum ConsultingWorks, asks, "Is your organization moving fast enough to thrive in the next 5, 10, or 20 years?" That's an excellent question.
Last week I spoke at the CLX Logistics Conference in Philadelphia on the future of Supply Chain Management. As I presented on Supply Chain 2030, I shared research on balance sheet performance, and provided insights on why I believe 90% of organizations failed in the delivery of supply chain excellence at the balance sheet level.
The digital path to purchase and omnichannel operations are complicating supply chain operations in a number of ways. The staff at the Council of Supply Chain Management Professionals (CSCMP) Supply Chain Quarterly notes, "Historically, companies have had one supply chain strategy.