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Sales and Operations Planning has become the preferred method to facilitate clear and formal communication between the demand and supply sides of a business. To address this, Gartner advises organizations to adopt scenarioplanning for S&OP. S&OP as a practice is changing. – Tweet this.
The virus continues to compromise supply chains and disrupt companies at a troubling rate, but a re businesses prepared from a supply chain planning perspective? . The era of globalization has enabled supply chains to be broader and more connected. First reaction s to the outbreak . – Tweet this.
Given that we are in the age of AI/ML, I often think of how the small deli where I worked was a perfect training ground for applying AI/ML in fresh supply chain planning. There are various use cases of AI/ML for fresh demand planning of products, from producers to large grocery chains and even small delis in suburban Pennsylvania.
We are flattered to be recognized by Gartner in the 2019 Magic Quadrant for Sales and Operations Planning Systems of Differentiation , especially considerin g that we only launched our configurable S&OP application two years ago. Analytics will play an increasingly important role in S&OP .
From a financial standpoint, transportation cost analysis remains focused on determining the value of the resources used to execute a given shipment and goes well beyond benchmarking. Without clear budgeting and cost-prediction measures, the transportation network will be unable to accurately plan for increases and decreases in expenses.
For companies that want to go beyond the traditional spreadsheet, which cannot handle this ocean of information efficiently, statistical methods such as cluster analysis can help. What is Cluster Analysis? Cluster analysis is a statistical umbrella term for methods that classify data points according to their attributes.
If youve followed our blog over the years, youll know that weve shared lots of information about distribution network design, why its vital to get it right, how long it should take, the importance of reviewing the network every so often, and various elements of design such as determining the number of warehouses and where to locate them.
In this blog, I will explore the use of AI/ML inventory planning for fresh products to optimize sales while minimizing waste and stockouts. This approach goes beyond traditional ABC segmentation , considering variability in both supply and demand and continuously adjusting product segmentation.
Now more than ever, organizations must prepare their supply chain for the present and the unknown challenges and opportunities in the future. Integrating external factors like consumer price indexes, GDP trends, climate change, and others into the forecast can improve signaling for supply chain design.
You have tough decisions to make about your supply chain network design. When you finally have the analysis, everything’s changed, and the results are no longer relevant. About 38% of supply chain professionals say it takes weeks and 18% say it takes months to get the answers they need.
The term “supply chain” started being used in the mid-1990s as global political conditions changed in ways that encouraged international commerce. During the pandemic, the supply chains that had previously been considered trustworthy were found to be fragile. This has led to a change of focus to supply chain sovereignty.
In December 2006, I published an article titled “ S&OP or just good supply chain planning ?” The article looked at what Sales and Operations Planning is, what it isn’t, and whether companies were on the right path to implementing it. What is Sales and Operations Planning? . I still agree with th is today. .
Have you conducted a cost-to-serve (CTS) analysis for your enterprise? And that is the sole purpose of cost-to-serve analysis. If you were going to say, “What is a cost-to-serve analysis?” Only a complete cost-to-serve analysis will expose these underlying issues unless they happen to be discovered incidentally.
Supply chain resiliency and sustainability are top priorities for CEOs today. To achieve these goals, corporate leadership must focus on two key areas: shift from internally focused supply chains to collaborative supply networks and actively design their supply chains.
In our previous blog, we explored how matrices enhance supply chain efficiency, from inventory management to logistics. This post dives into advanced applications of matrices, showing how AI, machine learning, and automation are transforming supply chains. Now, were taking it a step further. In case you missed it!
In an increasingly unpredictable world environment, practices for planning and forecasting inventory levels that worked in the past need to be reviewed. In the 1990s, APS (Advanced Planning and Scheduling) arose as a solution for making better decisions about inventory. Using AI in inventory management. Challenges of IO and AI.
Robinson Director of Research and Market Intelligence: The truck driver shortage is top of mind for many as supply chain disruptions continue, port backlogs persist, and the gap between inventory supply and sales demand widens. The answer is not simple and involves research and analysis across a number of factors.
Supply chain automation is the use of digital technologies to improve efficiencies, connect applications and streamline processes within supply chain operations. If your factory is the heart of your organization, then your supply chain is the veins and arteries. How long does each task take?
How to Elevate Your Logistics Operations with AI & ML Technology Global supply chain organizations are embracing digitization to propel their supply chain planning to new heights. What is Supply Chain Planning? Data informs transportation capacity and rates.
In an increasingly unpredictable world environment, practices for planning and forecasting inventory levels that worked in the past need to be reviewed. In the 1990s, APS (Advanced Planning and Scheduling) arose as a solution for making better decisions about inventory. Using AI in inventory management. Challenges of IO and AI.
In late 2023, Descartes conducted a survey of 1,000 supply chain and logistics decision-makers across North America and Europe across three sectors: manufacturing, distribution and retail; carriers; and logistics services providers. The research report What Are Companies Doing to Survive the Supply Chain and Logistics Workforce Challenge?
Drayage planning is essential for global retail shipping supply lines and deals primarily with ocean imports. This is also known as first-mile shipping and planning protocol. As explained by Supply Chain Game Changer , “Drayage services are more essential than ever.
Supply chain is one of the areas that was thrown into disarray by the effects of the COVID-19 pandemic as consumer markets were battered by surges, cancellations, and surprises. Organisations realised that the tools they relied on were no longer sufficient to facilitate the increased complexity of the demand planning process.
Proactive planning is among the most effective weapons logistics managers have in their arsenal. It is something that needs to be practiced more often when it comes to planning and predicting freight rates. And that’s especially true when considering new carriers or using other modes of transportation. Download the White Paper.
Editor’s Note: This blog post is from SupplyChainOpz. We found it as a great summation of all the things companies must consider when mastering their supply chain. Many studies state that those who can manage the functions with the supply chain, they have a competitive advantage. 2) Connected supply chains.
Editor's Note: This is a guest blog from our friend Greg Braun from C3 Solutions. In this blog, Greg discusses the real cost of inaction when you dont adopt new supply chain technology. New Supply Chain Technology: The Real Cost of Inaction. And do the cost-benefit analysis. BDC blog, https://www.bdc.ca/en/blog/pages/technology_opportunity_not_be_missed.aspx.
Most chemical companies think they have a high sales and operation planning (S&OP) maturity, but do they really? The higher your S&OP maturity, the better you can match supply and demand while steering towards strategic goals. The post Costly mismatch between supply and demand? Join us in testing the market!
A year before, in 2014, a Harvard Business Review article pointed out that supply chains were becoming increasingly global and complex and consequently more at risk than before. Supply chain disruptions. Until recently, supply chains and other business functions focused on efficiency and cost. Supply chain resilience.
Shortages of products from toilet paper to microchips during the coronavirus pandemic highlighted the value of supply chain resiliency, and the opportunities for companies that aren’t as prepared as they would like. A supply chain built for resiliency allows a company to adapt to unpredictable forces while maintaining customer service.
The supply chain management uncertainty in the post-COVID world shows no signs of letting up. With current conditions, it looks like there may never be a return to the pre-pandemic era of supply chain stability. How Supply Chain Management is changing. Risk analysis is becoming an important part of SCM.
Love it or fear it, Artificial Intelligence appears to be the new normal in everything, including supply chain and logistics operations. From improved customer experience to greater inventory planning and forecasting, AI promises to make all of our lives easier and reduce those all-too-common supply chain headaches.
To deal with the new challenges in managing and planning the supply chain , the procurement department is one of the functions that should look at changing. In the new normal where change and disruption can occur at any time, the procurement function needs to anticipate and plan for uncertainty. Supply chain control tower.
A fleet management system is a fundamental tool in the planning and operational control of the logistics sector. The opportunities for improvement when using this system include: Real-time location tracking of each vehicle; Analysis of drivers’ behavior in relation to what was planned and what happened.
In this blog, we’ll go over the economic and supply chain impacts that result from these events and how you can best prepare your supply chain. Impacts on the economy and supply chains. When these natural events happen, numerous businesses find their supply chains shook. Preparing your supply chain.
Editor's Note: Today's blog is by Dr. Muddassir Ahmed of muddassirism.com. In this blog he provides a simple reference guide to better yourself as a supply chain leader. and/or capabilities of the supplier and meet companies' short- and/or long-term supply needs. Lead Time Reduction in Supply Chain.
At this time last year, global supply chains were already in trouble. With the Chinese Lunar New Year approaching in late January 2020, global shippers planned to order stock from Chinese suppliers ahead of the celebration as factories and ports would shut down for two weeks. New disruptions, old lessons.
Most c ustomers may never give it a second thought, but business owners are well-acquainted with the fact that supply chains operate like a well-oiled machine. Due to the COVID-19 pandemic, disrupted supply chains made it difficult to provide communities with pandemic response, including food, vaccines, and other medical supplies.
Massive supply chain disruptions are being experienced around the globe, and the causes are many and complex. Factors affecting the supply chain. There’s no doubt that the pandemic, with its harsh lockdowns and impact on economies worldwide, has played a dramatic role in the supply chain disruptions being experienced by manufacturers.
In most industries, supply chain logistics account for 5% to 50% of a product’s total cost.” Where freight managers go wrong with planning the transportation budget The biggest problem when planning a transportation budget is an inability to see actual versus projected costs across the network. Think about this.
As you’ll know, if you follow our blog regularly, Logistics Bureau does a great deal of work related to supply chain strategy development and alignment. As a result, and as we’ve mentioned in several previously published articles, we’ve discovered that many companies lack a defined and documented supply chain strategy.
Whether you’re planning to benchmark your supply chain or simply trying to improve how you measure its performance, it makes sense to know a little about the most commonly used KPIs for each supply chain component. A lot will depend on the nature of your industry and the categories of supplies that you receive.
Ask manufacturing leaders what changes they plan to make in the next three years in the wake of the coronavirus pandemic, and they will likely say their use of technology will deepen as more and more players in their supply chains come to rely on digital connections for daily interactions. Talent gaps: ? Changing consumer attitudes:?
Predictive Analysis in Logistics and Supply Chain: How to Apply | Image source: Pexels In logistics, predictive analysis is simply the process of identifying and forecasting patterns, trends, and behaviors in both human and machine learning approaches, data, and algorithms.
The Logistics Blog®. How to Utilize Data to Drive Planning Changes and Improve OTD & Fill Rates. With persistent disruptions to the supply chain, having transparency to accurate data is crucial in forecasting, being able to stay agile, and combatting interruptions. Webinars Show Submenu Resources. Whitepaper. Case Study.
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